Second Mortgage
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
360Lending is an award-winning digital mortgage brokerage. See what thousands of clients have to say about their experience:
Learning Opportunity
What is a second 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.
Getting a second mortgage with 360Lending:
1
Keep your current mortgage
Enjoy the low rate with your current mortgage and avoid having to pay thousands of dollars as a prepayment penalty
2
Affordable monthly payments
Improve your cash flow with a significantly lower monthly payment compared to credit cards and personal loans. You can pay 50% less interest by consolidating your consumer debt.
3
Lower interest rates
Second mortgage interest rates will be higher than a first mortgage but much lower than credit cards and other consumer loans
Approved for $80,000as a second mortgage
Saved $12,000in prepayment penalties
Case Study: Keep Your Current Mortgage
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 investment 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.
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Richmond Hill, Ontario, L4B 3M4
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