Second Mortgages in Ontario
A Second Mortgage, Even If the Bank Said No
A second mortgage lets you borrow against the equity in your home while keeping your existing first mortgage in place. Turnedaway.ca arranges financing up to 80 percent of your home value for Ontario homeowners, including those with bad credit, no provable income, or who have been declined by a bank.
or call 1-855-668-3074
No credit check to get started · Approvals in as fast as 24 hours · Financing from $25,000
A second mortgage is a loan secured against your home that sits behind your existing first mortgage. You keep your first mortgage in place and borrow against the equity you have built up. In Ontario, equity-based lenders can approve based on your home value rather than your credit score or income, up to 80 percent of the home's value.
80%
Maximum combined loan to value we arrange, your first mortgage and the second together
24 hrs
Typical approval window through Turnedaway.ca versus weeks at a traditional bank
No min
No minimum credit score required, approval is based mainly on your home equity
$25K
Financing available starting from $25,000
What Is a Second Mortgage?
A second mortgage is an additional loan registered against a property that already has a first mortgage on it. It sits in second position behind your existing mortgage, which is where the name comes from. You keep your first mortgage exactly as it is and borrow against the equity you have built up on top of it.
Because you already have a mortgage and a track record as a homeowner, a 2nd mortgage is often easier to arrange than you might expect, even when a bank has said no. The interest rate is generally higher than your first mortgage, because the lender takes on more risk by sitting behind the first. In exchange, you get access to your equity without disturbing your existing mortgage.
It can take the form of a home equity loan, paid out as a lump sum, or a home equity line of credit, which works as revolving credit you draw on as needed.
How Does a Second Mortgage Work?
You continue making your regular payments on your first mortgage, and you make separate payments on the 2nd. The loan lets you put the equity in your home to work instead of leaving it locked up. Here is how the process runs from application to funding.
Assess Your Equity
We start by working out how much equity you have, your home value less the balance on your first mortgage. Estimate it yourself with our home equity calculator.
Choose the Right Structure
We help you decide between a lump-sum home equity loan and a revolving home equity line of credit, based on what you need the funds for.
Apply and Get Approved
Complete a simple application. We match you with the right lender from our network, with approvals often within 24 hours, staying within our 80 percent combined loan-to-value cap.
Access Your Funds
Once approved and the legal work is complete, the funds are advanced. Every term and cost is disclosed in writing through a Cost of Credit Disclosure before you commit.
Why Homeowners Take Out a Second Mortgage
Pay off high-interest credit cards and loans with one lower-rate payment. Debt consolidation is the most common reason.
Catch up on mortgage arrears and stop a power of sale before it completes.
Pay off CRA debts and liens before collection action escalates against your property.
Clear property tax arrears before the municipality begins tax sale proceedings.
Home Renovations
Fund repairs or upgrades that protect and add value to your property.
Catch Up and Stabilize
Bring missed payments current and create breathing room while you get back on your feet.
or call 1-855-668-3074
No Payments for Up to a Year
For some borrowers, we can arrange financing with payments prepaid for up to one year. Instead of making monthly payments, the payments are added to the loan amount up front, so there is nothing to pay out of pocket during that period.
This can be a strong option for a homeowner who is temporarily without income, recovering from a medical leave, or waiting for a business to pick back up. It provides breathing room to stabilize, with regular payments beginning once you are back on your feet. Whether this structure is available depends on your equity and situation, and we will tell you honestly if it fits.
How Much Can You Borrow?
Lenders look at the combined total of your first mortgage and the new loan against your home's value. Turnedaway.ca arranges up to 80 percent combined loan to value, and never above that line. Here is how the calculation works.
Simple Example
| Detail | Amount |
|---|---|
| Estimated Property Value | $500,000 |
| Maximum at 80% Combined | $400,000 |
| Existing First Mortgage Balance | $200,000 |
| Maximum Available | $200,000 |
In this example, 80 percent of the $500,000 home value is $400,000. After subtracting the $200,000 still owed on the first mortgage, up to $200,000 is available to borrow.
The maximum available varies by lender, property type, and location, since lenders tend to be more flexible in larger centres than in smaller markets. Use our home equity calculator for a personalized estimate. Financing available from $25,000.
Second Mortgage vs HELOC vs Refinance
There are a few ways to access your equity. A 2nd mortgage keeps your first mortgage untouched, which matters if you have a good rate you do not want to lose. Here is how the options compare.
| Feature | 2nd Mortgage | HELOC | Refinance |
|---|---|---|---|
| First mortgage | Stays in place | Stays in place | Replaced |
| Funds delivered | Lump sum | Revolving credit | Lump sum |
| Credit score needed | No minimum | 650+ typically | Good credit |
| Best when | You want to keep your first mortgage | You want ongoing access | Your first mortgage rate is high anyway |
| Available through us | ✓ Yes | ✓ Yes | ✓ Yes |
Our Commitment to Responsible Lending
Turnedaway.ca has been helping homeowners who were turned away by the big banks for decades. A 2nd mortgage adds a payment on top of your existing one, so it has to make sense for your situation, not just be possible to arrange.
We do not arrange financing above 80 percent combined loan to value. Property values can fall, and the loan already sits behind your first mortgage, so keeping a real equity cushion protects you if the market shifts. It is a client protection policy, not a sales limit.
The full cost, including the interest rate, lender fee, broker fee, legal fees, and appraisal, is disclosed in writing through a formal Cost of Credit Disclosure before you commit. We will also tell you honestly when this is not the right move and another option would serve you better.
or call 1-855-668-3074
Real Client Results
Every situation is different. Here are three examples of how Turnedaway.ca helped Ontario homeowners when traditional lenders said no.
Case Study 1 | Ottawa
Ottawa Family Stops a Power of Sale
After a temporary loss of income, a homeowner fell behind on mortgage payments and received notice that legal proceedings were beginning. Selling the home would have displaced the family and left little time to find an alternative. Mortgage arrears and damaged credit meant their bank would not approve additional financing, and time was becoming critical.
We arranged a second mortgage behind the existing first mortgage, using available equity to bring the mortgage current, cover legal costs, and provide a financial cushion while the homeowner stabilized.
Result: The power of sale was stopped, the mortgage was brought back into good standing, and the family remained in their home with the breathing room to recover financially.
Case Study 2 | Hamilton
A Second Mortgage With Prepaid Payments During Recovery
A homeowner was recovering from a medical leave and expected to return to work within several months. They had accumulated credit card debt and fallen behind on a few obligations but had significant equity in their home. With little current income, they could not qualify through traditional lenders, and a new monthly payment would have added pressure during recovery.
We arranged financing with payments prepaid for up to one year, allowing the borrower to access equity without making monthly payments during the recovery period. The funds were used to consolidate debt and stabilize their finances.
Result: High-interest debts were paid off, financial stress was reduced, and the homeowner had time to return to work before regular payments began, in a much stronger position.
Case Study 3 | Barrie
Barrie Homeowner Consolidates CRA Debt and Credit Cards
A self-employed homeowner had accumulated approximately $60,000 in CRA debt and credit card balances after several slower business seasons. Collection pressure was increasing and monthly payments were becoming difficult to manage. Traditional lenders focused on the taxable income shown on tax returns, while recent credit issues further limited the options.
We arranged a second mortgage secured by the equity in the home. The funds paid the CRA debt, eliminated high-interest credit card balances, and simplified their finances.
Result: CRA collections stopped, high-interest debt was eliminated, and the homeowner was left with a single structured solution and the improved cash flow to rebuild the business.
or call 1-855-668-3074
Where We Serve
Turnedaway.ca arranges second mortgages across Canada, with a strong focus on Ontario. The cities below are areas we serve regularly, not a complete list. We work with homeowners in every province and territory except Quebec, Newfoundland, Yukon, the Northwest Territories, and Nunavut.
Financing available from $25,000. Call us at 1-855-668-3074 or get started online today.
Frequently Asked Questions About Second Mortgages
What is a second mortgage?
A second mortgage is an additional loan registered against your home behind your existing first mortgage. You keep your first mortgage in place and borrow against the equity you have built up, either as a lump sum or a line of credit.
Can I get a second mortgage with bad credit?
Yes. Turnedaway.ca works with lenders who approve based mainly on your home equity rather than your credit score. Missed payments, collections, and past credit issues do not automatically disqualify you.
How much can I borrow?
Lenders look at your first mortgage and the new loan combined against your home value. Turnedaway.ca arranges up to 80 percent combined loan to value, less your existing mortgage. Financing starts at $25,000.
Do second mortgages have higher interest rates?
Yes, generally. The loan sits behind your first mortgage, so the lender takes on more risk and the rate is higher than a first mortgage. It is still typically far cheaper than carrying high-interest credit card debt.
Can I qualify if I am not working?
Often yes. Because approval is based mainly on equity, being between jobs does not automatically disqualify you. For some borrowers we can arrange payments prepaid for up to one year, which helps if you are temporarily without income.
What can I use the funds for?
There are no restrictions. Common uses include consolidating debt, stopping a power of sale, clearing CRA or property tax arrears, home renovations, or covering a financial emergency.
How is a second mortgage different from refinancing?
A 2nd mortgage leaves your first mortgage untouched and adds a separate loan behind it. A refinance replaces your first mortgage entirely. The second option is often better when you have a good rate on your first mortgage you do not want to lose.
How fast can I get approved?
Approvals often come within 24 hours, with full funding typically in 5 to 10 business days once documentation and legal work are complete. In urgent situations such as a pending power of sale, some files can close faster.
Where can I get a second mortgage?
They are available through some banks, trust companies, and private lenders. As a broker, Turnedaway.ca compares options across our lender network to find the right fit, including lenders who consider applicants the banks decline.
What does it cost?
Costs can include the interest rate, a lender fee, a broker fee, legal fees, and an appraisal. Every cost is disclosed in writing through a Cost of Credit Disclosure before you commit, so there are no surprises.
Get Approved for a Second Mortgage in Ontario
Start your secure application today and get a response within 24 hours. No credit check to get started, financing available from $25,000, with full transparency on cost.
Get Approved Now ✓or call 1-855-668-3074