Key takeaways
- Keeps your first mortgage (and its rate) in place.
- Rates are often 8% to 14% plus a lender fee of 1% to 3%; terms are usually 6 to 24 months.
- Have an exit plan: refinance at renewal, sell, or pay down.
How much does a second mortgage cost?
| Item | Amount |
|---|---|
| Interest at 8.49% (interest-only) | $7,216 |
| Lender fee 2% | $1,700 |
| Brokerage fee (if any) | Disclosed on the bid |
| Legal | $800–$1,500 |
Example only; each bid lists its own rate and fees.
Second mortgage vs HELOC
A HELOC is cheaper but needs prime-lender qualification and 20% equity. A second mortgage relies more on equity and can fund quickly when credit or income doesn't fit a bank.
Who lends second mortgages in Canada?
Private lenders, mortgage investment corporations (MICs), mortgage funds and some credit unions. Every lender on MortgageBids.ca is approved before it can bid.
Frequently asked questions
What is the maximum loan-to-value for a second mortgage?
Commonly 75% to 85% combined, depending on the lender and property.
Is a second mortgage a good idea?
When it costs less than breaking your first mortgage or than unsecured debt, and you have a clear way to pay it off.
MBWritten by the MortgageBids.ca editorial team. Last updated October 7, 2026. General information only; your lender confirms terms for your file.
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