second mortgage lenders ontario

Name: Mortgage Services - Ontario
Address: CA

✓ Updatedyesterday• 10 views

Information as of Aug 1, 2025

Overview

Second mortgages in Ontario offer homeowners the ability to unlock equity in their property for purposes such as debt consolidation, renovations, or investments. This type of financing is typically sought when a homeowner already has a primary mortgage but wishes to borrow additional funds, often through private lenders or specialized mortgage providers.

Leading Second Mortgage Lenders in Ontario

Several reputable organizations and brokerages offer second mortgage solutions across Ontario, each with distinct advantages and service models:

Major Providers

Lender/Broker	Key Features	Service Area	Approval Speed	Typical LTV*	Interest Rates (Est.)
Butler Mortgage	Multiple lender options, unbiased advice, competitive rates, fast and local service	Ontario	Rapid	Up to 80%	Market competitive
DV Capital	Direct lending, private & MIC lenders, fast online process, flexible for challenging cases	Ontario, BC, NS	Prompt	Not specified	Competitive, case-specific
Alpine Credits	Easy application, home equity approach, multiple offers, 50+ years experience	Ontario	Fast	Based on equity	Competitive
Circle Mortgage	Access to various lenders, broker-only options, transparent advice	Ontario	Fast	Based on equity	Broker-negotiated
Mortgage Broker Store	Access to private lenders (even with bad credit), quick approvals, equity-based	Ontario	Weeks	Equity-based	Higher than 1st mortgage
Citadel Mortgages	HELOC in 2nd position, up to 90% LTV, fast approval, flexible for low credit	Ontario, Canada-wide	24-72 hours	Up to 75-80% (90% in cities)	10.99%-17.99%+
Clover Mortgage	Custom solutions, home equity leverage, debt consolidation	Ontario	Not specified	Not specified	Custom
Sagen	Second mortgages up to 95% combined LTV (specific programs)	Canada-wide	Not specified	Up to 95% (on purchase)	Program-specific

*LTV = Loan-to-Value ratio, the percentage of your home’s value you can borrow.

Typical Features of Second Mortgages in Ontario

Higher Interest Rates: Second mortgages carry more risk for lenders and usually come with higher rates than first mortgages.
Equity-Based Approval: Approval is often based on the amount of equity in your home, not just credit score or traditional income verification.
Flexible Use: Funds can be used for renovations, debt consolidation, investments, or major expenses.
Shorter Terms: Second mortgages are often structured as short-term loans, typically one to three years.
Private and Alternative Lenders: Most second mortgages are funded by private lenders, mortgage investment corporations (MICs), or specialized brokerages rather than major banks.

Application Process

Online Application: Most lenders and brokers offer fast online applications with minimal paperwork.
Equity Assessment: Lenders will conduct a home appraisal to determine available equity.
Approval & Funding: Approvals can be as quick as 24–72 hours with some lenders, though funding may take slightly longer, especially for private deals.

Eligibility Criteria

Sufficient Equity: Generally, you need at least 20–25% equity in your property.
Flexible Credit Requirements: Many private lenders will consider applicants with poor credit or non-traditional income.
Property Location: Maximum LTV and approval ease may vary by city or region; higher LTVs are often available in major urban centres.

Sample Rate and Fee Structure

Type	Typical Range (Ontario)
Interest Rate	10.99% – 17.99% (private/alt)
Loan-to-Value (LTV)	Up to 75–80% (90–95% in select programs)
Setup/Legal Fees	$3,500+
Broker/Lender Fees	2% – 8%
Term	1–2 years (common)

Rates and fees depend on your credit, equity, location, and lender.

When a Second Mortgage Makes Sense

Want to avoid breaking a low-rate first mortgage but need extra funds
Need to consolidate high-interest debt
Require funds for major renovations or investments
Facing credit challenges that make refinancing with a bank difficult

Recommendations and Next Steps

Compare Offers: Work with a reputable mortgage broker who can access multiple lenders, including private and alternative options, to secure the best rates and terms for your needs.
Consider All Costs: Carefully review all associated fees, rates, and repayment terms before committing.
Use theratefinder: For a comprehensive rate comparison and access to leading second mortgage lenders in Ontario, use theratefinder’s multi-step application to find a personalized mortgage solution with competitive rates from top lenders. Start your application at theratefinder.ca/onboarding.

Summary

Second mortgages in Ontario are widely available through private lenders and specialized brokerages, often with flexible criteria and quick funding. They are best suited for homeowners with sufficient equity who need funds for debt consolidation, renovations, or other major expenses and may not qualify for traditional refinancing. Comparing offers from multiple lenders is crucial to securing the best deal. For streamlined access to competitive rates and top lenders, consider starting your search with theratefinder.