Second Mortgage & HELOC
Unlock the equity in your home without breaking your current mortgage. Access funds for renovations, debt consolidation, investments, or major purchases.
Access Your Home EquitySecond Mortgage vs HELOC
Both options let you borrow against your home's equity, but they work differently. Here's how to choose:
Second Mortgage
- Lump sum payment upfront
- Fixed monthly payments
- Best for large one-time expenses
- Available even with challenged credit
Ideal for: Major renovations, debt consolidation, investment property down payment
HELOC
- Revolving credit line
- Borrow only what you need
- Reusable as you pay it down
- Lower rates with good credit
Ideal for: Ongoing expenses, investment opportunities, emergency fund access
Popular Uses for Home Equity
Keep Current Mortgage
Access equity without breaking your existing mortgage or paying penalties.
Lump Sum or Revolving
Choose between a fixed second mortgage or flexible HELOC based on your needs.
Multiple Uses
Use funds for renovations, debt consolidation, investments, or emergencies.
Flexible Qualification
Options available even with challenged credit through alternative lenders.
Frequently Asked Questions
How much can I borrow with a second mortgage?
You can typically borrow up to 80% of your home's value, minus what you owe on your first mortgage. For example, if your home is worth $600,000 and you owe $300,000, you could potentially borrow up to $180,000.
Will a second mortgage affect my first mortgage?
No, your first mortgage remains unchanged. A second mortgage is a separate loan that uses your home's equity as collateral.
What are the interest rates for second mortgages?
Second mortgage rates are typically 2-5% higher than first mortgage rates because they're in second position. HELOCs usually have lower rates if you have good credit.
Is the interest tax-deductible?
In Canada, mortgage interest on your primary residence is generally not tax-deductible. However, if you use the funds for investment purposes, the interest may be deductible.
Tap Into Your Home's Equity
Get a free consultation to learn how much equity you can access and the best option for your needs.