The interest rate on a second mortgage is only part of your true cost of borrowing. In 2026, the closing costs on a typical $100,000 second mortgage in Canada run between $2,200 and $5,500 — and a few are negotiable. Total Closing Cost Snapshot Loan size A-lender total B-lender total Private total $50,000 $1,800–$2,400 $2,500–$3,500 $3,200–$4,800 $100,000 $2,200–$2,900 $3,200–$4,500 $4,500–$6,500 $200,000 $2,600–$3,400 $4,500–$6,500 $7,500–$10,500 Each Fee, Explained Appraisal — $300 to $500 Required on virtually every second mortgage. Some A-lenders waive it on a recent purchase or when an automated valuation supports the loan. Legal fees — $800 to $1,500 A real estate lawyer registers the second mortgage on title. This includes title search, registration, and disbursements. Title insurance — $300 to $400 Most lenders require it. One-time premium. Usually bundled into the legal invoice. Lender fee — $0 to 3% of the loan A-lenders: $0 B-lenders: 0% to 1% MICs and private: 1% to 3% A 2% lender fee on a $100K second is $2,000 — often the largest single closing cost on private deals. Broker fee — typically $0 on residential Brokers are paid by the lender on most A and B deals. On some private deals, a broker fee of 1% may apply and must be disclosed in writing before signing. Mortgage default insurance — usually not applicable Second mortgages above 80% combined LTV are very rare. CMHC and Sagen do not insure second-position mortgages. Discharge fee — $200 to $350 Charged when the second mortgage is paid off, registered against your title. Recurring Costs During the Term Cost Frequency Property tax (already paying) Annual Home insurance (already required) Annual HELOC standby fee (if applicable) $0–$200/yr Negotiation Reality Check Fee Negotiable? Appraisal Sometimes waived Legal Shop your own lawyer Title insurance No Lender fee on private Yes — 0.5% to 1% Broker fee Always disclosed up front Discharge No Cost Examples by Scenario A-lender, $100,000, 65% LTV Appraisal: $400 Legal: $1,300 Title insurance: $350 Lender fee: $0 Total: $2,050 B-lender, $100,000, 75% LTV Appraisal: $450 Legal: $1,400 Title insurance: $375 Lender fee: $1,000 (1%) Total: $3,225 Private, $100,000, 78% LTV Appraisal: $500 Legal: $1,500 Title insurance: $400 Lender fee: $2,500 (2.5%) Total: $4,900 The Cost That Hurts the Most The mistake we see most often: homeowners taking a 1-year private second when they actually need 24 months. They pay closing costs, then pay them again at renewal. Always match the term to your real exit timeline. Back to the second mortgage pillar guide Ready to Get Started? Contact us today for personalized mortgage advice and competitive rates. Get Pre-Approved Call (416) 822-7357 Frequently Asked Questions Can closing costs be added to the loan? Yes. Lenders will fund the legal and lender fees through the lawyer at closing, so you do not pay out-of-pocket — but you will pay interest on those costs. Are second mortgage fees tax deductible? For investment use only. Personal use fees are not deductible. Speak with a CPA. How quickly are fees finalized? Lender fees are stamped in the commitment letter. Legal and appraisal fees are confirmed by your lawyer 5–7 business days before closing.
