Second Mortgage Calculator: Payments & Costs (Canada)

It’s a loan secured against your home behind your existing first mortgage — your current mortgage stays exactly as it is. Because the lender sits second on title, approval is based on your equity rather than your credit score, and funds arrive as a lump sum you can use for anything.

Most B lenders lend to a combined 80% of your home’s appraised value; private lenders to about 75%. On a $700,000 home with $450,000 owing, that’s roughly $110,000 of room at 80% — the calculator above shows your exact room from your own numbers.

B-lender second mortgages run about 5.99–7.99%. Private seconds run about 9–14%, plus a lender fee of 1–2% and broker fee of 1–2%. Higher than a first mortgage — but on a small balance the dollar cost is modest, and it leaves a low first-mortgage rate untouched.

Yes — this is the product built for it. Second mortgage approvals rest on equity and the property, so low scores, consumer proposals, and even mortgage arrears can still qualify. It’s the standard tool for consolidating debt or stopping a power of sale while credit rebuilds.

Most private seconds are interest-only: $50,000 at 10% is about $417/month; $80,000 at 12% is about $800/month. Run any amount and rate in the calculator above, including amortized options that pay the balance down.

Private seconds can fund in 48–72 hours when the appraisal is available — fast enough to stop a power of sale or cover a closing. B-lender seconds typically take 1–2 weeks.

Refinancing means breaking your first mortgage — penalties, and repricing your whole balance at today’s rates. A second mortgage borrows only the new money and leaves your first alone. Try our refinance vs. second mortgage calculator to price both routes side by side.