Key takeaways
- Typical terms are 6 to 12 months, interest-only.
- Expect higher rates and fees; confirm the total cost to exit.
- Most useful as a bridge to a refinance or sale.
When does a third mortgage make sense?
When you need funds quickly, both existing mortgages are worth keeping, and you have equity and a clear exit within a year.
What does a third mortgage cost?
Rates and fees vary widely. Compare the all-in cost (interest plus every fee) across bids rather than the rate alone.
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Exit plan: how do I pay it off?
- Refinance all mortgages into one at renewal
- Sell the property
- Pay down with expected funds (bonus, inheritance, sale of another asset)
Frequently asked questions
Do banks offer third mortgages?
Rarely. Private lenders and MICs are the main sources.
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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