Second Mortgage Ontario Canada
Get a second mortgage to keep your current mortgage and avoid penalties
A second mortgage is usually the most cost-effective way to get financing without breaking your existing first mortgage and incurring a prepayment penalty. Use your equity to pay off your credit cards, finance a large purchase, or get cash to use at your own discretion.
or call 1-888-360-1056
Smart money advice for Canadian homeowners
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Keep your first mortgage
A second mortgage is a loan secured by a property that already has an existing first mortgage. Second mortgages typically have higher interest rates than first mortgages; however, they allow borrowers to retain their existing mortgage and avoid prepayment penalties.
Common questions from clients on 2nd mortgages:
1
How do second mortgages work?
Enjoy the low rate with your current mortgage and get affordable financing without having to pay thousands of dollars as a prepayment penalty.
2
Any credit or income requirements?
Getting a second mortgage with bad credit is possible depending on your income & equity. Good credit helps!
3
Are personal loans better?
Personal loans are not secured against real property, so they are usually smaller, more expensive, and harder to get.
4
What are my next steps?
Call us or apply online. We'll show you how much you can save and what you might qualify for, collect some documents, and present the best options on the market.
Approved for $80,000as a second mortgage
Saved $12,000in prepayment penalties
Case Study: Avoid Penalties
Josh is a financial advisor and he owns an investment property in Barrie, Ontario. He has about 3.5 years left on his $475,000 mortgage which he has locked in at a very low rate.
Josh has a lucrative business opportunity that will require him to pay $80,000 upfront, but he does not want to give up his low rate and he wants to avoid paying the prepayment penalty associated with breaking his mortgage.
How 360Lending helped Josh get his capital
The client has an existing mortgage of $475,000 at a low rate for the next 3.5 years, it would save him more money to get a second mortgage for $80,000 instead of breaking the first mortgage.
Josh has a strong employment history, good credit, and low debt-to-income ratios. We advised the client that we can likely help him qualify for a second mortgage with a financial institution (i.e. banks).
Our team used his T4s for the past 2 years and his most recent pay stubs to shop for a second mortgage.
Results
Josh qualified for a second mortgage with a bank with a term of 3.5 years to match the maturity date of the first mortgage. The client was able to invest in his business opportunity, continued to take advantage of his low rates, and avoided paying a prepayment penalty.
Get an estimate of your monthly payment:
Ready to explore your options for a second mortgage?
We recommend getting the following documents ready to ensure a seamless experience:
2 valid IDs (i.e. passport)
Direct deposit (or void cheque)
Home insurance
Mortgage statement
Property tax bill
T4s from the past 2 years & pay stubs (salaried or hourly)
Bank statements (self-employed or retired)
360Lending empowers families with tools for better decisions and prioritizes client care for success.
9040 Leslie St, Unite 215
Richmond Hill, Ontario, L4B 3M4
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