Second Mortgage Toronto and Ontario 2023

Best Second Mortgage Rates in Toronto, Ontario

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Get Approved for a Second Mortgage in Toronto and All of Ontario

Getting approved for a second mortgage in Toronto and Ontario is not difficult. A second mortgage is a secured loan that’s registered behind your existing mortgage. This secondary placement enables you to keep your first mortgage options and rate while tacking on additional funds with a new mortgage.

A second mortgage helps free up your cash flow by consolidating all your outstanding high-interest debt into one low monthly payment.

With Arash Sef, your second mortgage for residential and commercial property all across Ontario will be approved in less than 24 hours! Getting a second mortgage in Toronto has never been this easy.

Arash Sef specializes in providing second mortgages and home equity loans to homeowners/commercial property owners. Arash Sef understands that life happens and these unforeseen events often require taking out a second mortgage on your property. Arash Sef will listen to your story, provide a free professional consultation, and, of course, offer a quick mortgage approval that is tailored to your mortgage needs.

How much can I get approved for a second mortgage? Arash’s dedication is to provide you with optimal mortgage solutions through second mortgages in Toronto and most of Ontario.

Arash Sef has helped hundreds of clients just like you with second mortgages in Ontario, with home equity loans up to 90% of the property’s value with competitive rates.

Get Your Second Mortgage Approved In Toronto: Second Mortgage Calculator Free

The second mortgage calculator in Canada is a free and neat tool that enables you to quickly calculate your available home equity for securing a second mortgage or home equity loan. This resourceful tool will calculate the interest rate and monthly payments for the amount of a second mortgage or home equity loan you can potentially qualify for.

How To Use The Second Mortgage Calculator

The second mortgage calculator is easy and fast to use:

  • Submit Your Home Value
  • Submit Your First Mortgage Balance
  • Submit Your Second Mortgage Balance (If you currently have a second mortgage)

Once you’ve submitted the above information, The Second Mortgage Calculator will display the amount of available equity in your home for securing a second mortgage or home equity loan.

The Second Mortgage Calculator will also calculate the monthly payments and suitable interest rate based on the amount of available home equity in your home.

Use The Second Mortgage Calculator To See Your Available Home Equity, Interest Rate & Monthly Payments for Your Second Mortgage.

Second Mortgages in Canada: Everything You Need to Know!

The more you make on your mortgage each month, the more equity you have in your home. Equity is also built by the increase in the value of your home over time. The value of your home can increase as you upgrade or remodel it, or if there is an overall rise in real estate prices.

If you’re looking for a way to gain some extra cash from your mortgage, consider a second mortgage. A second mortgage is a line of credit that’s secured by the equity in your home. It’s like getting a new loan on top of your existing mortgage—and the second mortgage lenders in Ontario will only give you the money if they can be sure they’ll be paid back first.

It’s important to remember that while second mortgages may seem like a great idea at first glance, they can come with downsides too! Before deciding whether or not this option is right for you, take some time to learn more about how these loans work and what risks might be involved.

Like many other investments, a home is an asset that can be used as collateral to secure a loan. This can be done in several ways, including:

  • Selling your home.
  • Refinancing your mortgage in Canada.
  • Getting a second mortgage.
  • Using the money for emergencies, college savings, or retirement.
  • Taking out a home equity loan.
  • Apply for a loan to finance repairs or renovations on your home.
  • Obtaining a home equity line of credit (HELOC).

If you’re thinking about taking out a 2nd mortgage, Arash Sef is here to help.

I will make sure that your application is processed quickly, and that you receive the best possible rate on your loan.

What Is A Second Mortgage?

A second mortgage is a different type of loan you secure with your property. It is registered in the second position since there is already a first mortgage currently registered on the title of your home.

The second mortgage allows you to borrow money against the equity in your home. This is usually done when you need extra funds for renovations, or to pay down high-interest debt such as credit cards or student loans.

Your first mortgage will still be paid off before any payments are made on the second mortgage, which means that you’re not putting yourself at risk of losing your home if something goes wrong.

Second Mortgages Explained

Second mortgage vs. refinancing your home? If you are considering taking out equity from your home, refinancing a mortgage in Canada may pose some challenges, such as:

  • Increased penalties for breaking your first mortgage.
  • High credit cards and unsecured debt could be difficult to stay on top of.
  • Poor credit history
  • Potential job loss or job transitioning
  • Late mortgage payments or mortgage arrears
  • Unable to qualify with traditional banks and lenders
  • Higher monthly payments due to additional interest and fees
  • If your loan has been paid off for several years, it may be difficult to qualify for additional funds.
  • Potential for increased interest rates.
  • Loss of tax deductions for mortgage interest and property taxes.
  • Loss of favorable financing terms (e.g., lower origination fees).


Additionally, If you have recently made any renovations or improvements that added value to the property, this may also affect how much money is available for refinancing purposes.

If you may not qualify to refinance your mortgage in Canada, the only available option to access your home equity would likely be a 2nd mortgage.

How Much Can You Borrow?

Get a Second Mortgage by Comparing Payments & Rates. Use This Calculator to See How Much Equity You Can Access.

How Do Second Mortgages in Ontario Work?

Second mortgages in Toronto, Ontario work the same as any mortgage. The process is simple: A second mortgage is a lien that comes on your property in second position, and does not replace the current mortgage. Instead, a second mortgage allows you to access equity from your home without breaking your current first mortgage, which can be very expensive. With a second mortgage you are free to use that money however you wish, whether that’s paying off high interest credit cards debts, completing home renovations, or using the funds as a down payment on an investment property.

A second mortgage is just like any other mortgage: it has a term, an interest rate, monthly payment, and closing costs.

Second mortgages typically do not have an amortization schedule. This means you only pay interest on the outstanding balance. You can request an amortization schedule and begin paying off the principal, though it may require a substantial increase in your monthly payment.

The length of the loan can vary, ranging from three months to one year. Most second mortgage lenders in Ontario offer a twelve-month term. A second mortgage is not a long-term solution and should be used as a short-term solution. The penalty for breaking a second mortgage during the term is usually three months’ interest payments. Arash Sef does have access to private lenders offering fully open second mortgage terms and twelve-month terms with the final 6 months being fully open.

Second Mortgage Basics in Toronto and Ontario

The most important thing to know about second mortgages is that it’s not free money. If you take out a second mortgage, you will need to continue making payments on both your first mortgage and your second mortgage. That means two separate mortgage payments each month — one for your primary mortgage and one for your second mortgage— which can get expensive fast if you don’t plan carefully. Fortunately, Arash Sef has access to private lenders that can prepay your second mortgage payments from the proceeds of the second mortgage loan. This means, you can be payment free for the 12-month term of your second mortgage as the payments would have already been deducted from the advanced at the time of closing the second mortgage. This allows you to shift all of your focus on making your first mortgage payment and be cash flow positive for the term of the second mortgage.

Second Mortgage Rates

The interest rate for a second mortgage varies based on a few key factors.

  • The amount of equity remaining in the home
  • the amount of funds being taken out as a second mortgage
  • Credit-worthiness of the borrower and other factors
  • The interest rate on a second mortgage is largely determined by the value of the property that serves as collateral.

Since a second mortgage approval is simply based on equity, and not the borrower’s income or credit score. A second mortgage can become risky for the private lender in the event the real estate market conditions change, and the property value declines.  Then the lender would be in a compromised position in comparison to his original stance when entering the loan as the LTV (Loan to Value) would be increase, as a property vale declines.

A borrower’s credit history can affect the interest rates charged on a second mortgage. While credit and income are not factors in determining whether or not a borrower is approved for a second mortgage, these factors may determine the interest rate as some of our private lenders have a tier system which is based on credit to determine the interest rate.

Second mortgages may be offered at interest rates between 4.99% and 10.99%. Lenders typically assess the risk of offering a second mortgage to a borrower and adjust the interest rate accordingly.

A great way to find out your potential interest rate for a second mortgage is using a second mortgage calculator.

Second Mortgage Payment

Payments for a second mortgage are majority based on interest only payments, and most second mortgage lenders will only offer a monthly payment schedule.   We do have private lenders that allow you to prepay the interest payments for entire term or half of the term.

A second mortgage calculator is a great way to find out your potential interest rate for a second mortgage.

Step-By-Step Guide On Getting A Second Mortgage in Toronto and Ontario 2023

A second mortgage in Ontario is one of the easiest types of mortgage loans to qualify for because approval is based primarily on available home equity. Bad credit and a high level of debt are not factors in qualifying for this type of loan.

The Simple 10 Step Second Mortgage Process is:

  1. Contact Arash Sef at 647-588-0488 to consult your second mortgage request with a licensed mortgage agent that specializes in private and second mortgages.
  2. After consultation, the first thing we do is collect a mortgage application and proceed to ordering an appraisal from an accredited and reputable appraiser, who will confirm the fair market value of the property.
  3. Next, a private lender will want to verify the amount of the existing mortgage balance(s) on the property.
  4. Next, if the homeowner has sufficient equity (at least 20% of the home’s appraised value), they can obtain a loan up to 85% or 90% of the home’s value.
  5. Upon confirmation of all the above, a mortgage application will be sent to lenders for review. If approved by the lender, a commitment letter will be issued.
  6. After approval is issued, the homeowner(s) and lender review the approval and terms and decide whether to proceed with the offer.
  7. When the mortgage documents have been signed, the lender will issue final registration documents to the borrower’s lawyer.
  8. When the homeowner’s lawyer receives mortgage documents and all other documentation requested by the lender, they will make an appointment to meet with the homeowner and sign the final documents.
  9. Once the borrower’s lawyer has satisfied the conditions set by the lender, the lender will disburse the loan amount to the borrower’s lawyer.
  10. Once all the information is gathered, the lawyer will write a cheque or deposit the remainder of the loan directly into your bank account.

Pros and Cons of Second Mortgages

Before taking out a second mortgage, it is important to understand the advantages and disadvantages of this type of loan. A typical homeowner will find that a second mortgage works well for most situations, though some may not be suitable for all homeowners.

See the list of pros and cons of getting a second mortgage in Toronto and Ontario.

Pros of Second Mortgages

  • You can tap into your home equity without selling your home.
  • Do home renovations to improve the value of your home
  • Consolidating your debt into one monthly payment can save you a substantial amount of money by reducing the interest rate on the debt.
  • Reducing your interest rate will also protect your credit rating and improve it over time.
  • Free up your monthly cash flow by having a lower monthly payment on your overall debt
  • Pay only the interest portion of the payment, which will free up your monthly cash flow
  • Protect your credit score from dropping when you are carrying high debt amounts
  • Catching up with late or missed mortgage payments to avoid a power of sale, which terminates a mortgage contract and allows the lender to sell a house, can sometimes be beneficial for homeowners.
  • Deferring payments on your mortgage during the term of a loan.


Cons of Second Mortgages

  • Paying only the interest portion of a loan payment can be a disadvantage, as you will not reduce the principal balance of your loan. However, you may request to pay down the principal balance if desired. This can also be an advantage for fix and flippers that require a low carrying cost for their project prior to selling a property.
  • Lenders charge higher interest rates on second mortgage in comparison to first mortgages as the position of the mortgage is riskier. In the even of a propriety sale, or refinance, the first mortgage gets paid out first, then the second mortgage gets paid out. This greater risk reflects a higher interest rate on second mortgages vs first mortgages.

Common Uses Of A Second Mortgage

All homeowners have different reasons for why they need to leverage the equity build up in their homes to access money.

Private Lenders don’t put any restrictions on how and why you use your money. 

A Second mortgage is often used for the following reasons:

  • Pay off high-interest credit cards and loans (that are costing you lots of money in interest payments!)
  • Home improvements or home renovations
  • Emergency funds (if your primary mortgage lender won’t lend you any more money)
  • Paying for education (for yourself or your child)
  • Business investment or business capital (to build up your business or open a new business)
  • Medical expenses (or those of a family member)
  • Investment property (to help you become a landlord)
  • Bridge loan (when you want to buy something but don’t have enough cash in hand right now)
  • Pay mortgage arrears to stop the power of sale process from being started against you – these are debts that have accrued over time on an existing loan and that have not been paid off in full or at all. If this happens, the lender may sell off the house they gave you the loan for – even if they do own it! This could cause serious financial problems for everyone involved!
  • Pay mortgage arrears to stop the power of sale process
  • Pay CRA income tax arrears
  • Pay property tax arrears

Get the Knowledge and Experience of a Licensed Mortgage Agent

A licensed mortgage agent is a professional who deals or trades in mortgages for a licensed mortgage brokerage, under the supervision of a licensed mortgage broker. A licence mortgage agent must have a licence from FSRA.

Our Mortgage Agents have been trained and tested in various areas of home financing. They also have experience with hundreds of loans and can give you their opinion on whether or not a second mortgage is right for you.

They will be able to help you determine if this type of loan will fit into your financial situation, and if so, how much money you’ll need. They may also recommend other options for funding such as borrowing from family members or getting a home equity line of credit instead of taking out another loan altogether. If you’re looking for a 2nd mortgage, Arash Sef can help.

We can help you get the 2nd mortgage that you need, when you need it. Get in touch with us today to get a quote on your 2nd mortgage needs and get unbiased expert mortgage advice.

Alternatively, you can also call us at 647-588-0488 to speak with an expert and start the process today.

Low Rates

Thanks to the high volume of business I fund annually, I have access to unpublished promotional rates through my network of lenders

Fast Approval

I provide quick and easy approvals, as well as fast close options for those in need of a quick closing timeframe.

Good Or Bad Credit

I have access to an incredible list of trusted lenders – including banks, credit unions, trust companies and private funders – to find a mortgage product and rate that fits your exact needs.

Any Income Type

Every borrower has unique short and long-term financing goals. I pride myself in providing the solution that’s right for you throughout every stage of your time as a mortgage holder.

Approved On Equity

Is there equity in your property? If so, You’re Approved!

Get Approved For A Second Mortgage in Toronto and the Rest of Ontario Today

Current MortgageSecond Mortgage
Home Value: $500,000Home Value: $500,000
$300,000 1st Mortgage Balance = $1,450/ per month$300,000 1st Mortgage Balance = $1,450/ per month
Before Second Mortgage$100,000 Second Mortgage = $500/month
$50,000 Credit Card Debt @ 20% = $833/monthCredit Card Debt = Paid
$25,000 Auto Loan @10% = $208/monthAuto Loan = Paid
$25,000 Store Card @29% = $604/monthStore Card = Paid
Total $3,095/monthTotal $1,950/month
You Save $1,145/month!!!

Arash Sef Will Approve Your Second Mortgage in Toronto For Any Of The Following Reasons:

We’ve successfully assisted hundreds of homeowners in accessing funds from their home equity through our equity lenders.

Fast Turn Around Time & Efficiency​

I pride myself on providing supreme efficiency and quick turnaround times on all mortgage inquires. With access to my extensive list of real estate investors, I’m able to assist homeowners with those “hard to place mortgages” in a short period of time. My professionalism and lengthy experience in the industry will allow for stress free and painless mortgage process.

I never charge clients upfront fees. I offer free no-obligation consultations to all homeowners looking for unbiased and up-to-date information on your very best options.

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