Second Mortgage Ontario: How to Access Your Home Equity in 2025

If you own a home in Ontario and need access to cash, a second mortgage could be the solution you have been looking for. Whether you are dealing with unexpected expenses, debt consolidation, home renovations, or an investment opportunity, a second mortgage lets you tap into the equity you have built — without touching your first mortgage.

What Is a Second Mortgage?

A second mortgage is a loan secured against your property that sits behind your primary (first) mortgage. Because it is backed by real estate equity, lenders can approve clients who may not qualify for traditional unsecured loans or lines of credit. The amount you can borrow depends on how much equity you have in your home.

How Much Can You Borrow?

Most lenders allow you to borrow up to 80–85% of your home’s appraised value, minus the balance of your first mortgage. For example, if your home is worth $800,000 and you owe $500,000 on your first mortgage, you could access up to $180,000–$200,000 through a second mortgage.

Who Qualifies for a Second Mortgage in Ontario?

• Homeowners with at least 20% equity in their property
• Clients with bruised or rebuilt credit
• Self-employed borrowers with non-traditional income
• Clients who have been declined by their bank
• Homeowners facing power of sale or foreclosure

At Mortgagefy, 90% of our second mortgage clients get approved — even after being declined by banks. We work with A-lenders, B-lenders, and private mortgage lenders across Ontario to find the right fit for your situation.

Second Mortgage Rates in Ontario (2025)

Second mortgage rates in Ontario typically range from 7% to 14% depending on your equity position, credit profile, and the lender type. Private lenders tend to charge higher rates than institutional B-lenders, but they also approve clients that banks and credit unions will not touch.

Costs to Expect

• Interest rate: 7%–14% (depends on lender and credit)
• Lender fees: 1%–3% of loan amount (institutional) or 2%–4% (private)
• Appraisal: $400–$700
• Legal fees: $900–$1,500
• Broker fee: $0 — Mortgagefy is paid by the lender, not you

How Fast Can You Get a Second Mortgage?

With a private lender, you can receive funds in as little as 5–10 business days. Institutional B-lenders typically take 2–3 weeks. If you are facing a power of sale or urgent financial deadline, we can often arrange emergency bridge financing even faster.

Ready to Apply?

Mortgagefy operates under 8Twelve Mortgage Corporation (FSRA Lic# 13072). Our licensed agents will review your situation at no cost and match you with the lender that makes the most sense — not the one that pays the most commission. No credit check required to get started.

Apply for a Second Mortgage → Free Consultation