Current Second Mortgage Rates in Ontario
Tired of searching for "second mortgage rates" only to be met with generic or confusing information?
You're not alone.
The financial industry often makes it frustratingly difficult to find a clear answer—especially if your situation isn't a straightforward one.This guide changes that.
We've compiled a transparent, no-fluff resource that cuts through the noise and gives you the real information you need about second mortgage rates. As a specialized mortgage brokerage, our job is to help homeowners across Ontario find solutions tailored to their unique financial story.
Ontario Market Rates
Rates updated Sep 24, 2025
Current Second Mortgage Rates
Second Mortgage (B Lenders)
Home Equity Loan (Private)B-Lenders are regulated financial institutions that provide an alternative to the major banks. They offer more flexible underwriting and are more willing to approve borrowers with bruised credit (over 550), slightly overextended income (GDS/TDS under 50%), and self-employed professionals.
Private lenders are non-institutional lenders who provide a solution for borrowers who do not qualify with banks or B-lenders. Their underwriting is highly flexible, with approvals based primarily on the equity in your home rather than your income or credit score.
Get Your Personalized Rates
The single greatest benefit of working with a broker is access to the entire market.
While a bank can only offer you its own products, we can shop across a vast network of lenders to find the one that best suits your needs and offers the most competitive second mortgage rates. Our streamlined process is designed to give you a clear path to approval.
More solutions- Faster approvals
- Better rates
Your Hassle-Free Mortgage Approval
Backed by 2,000+ 5-star reviews, you can get a free online estimate, see your borrowing options, and review the best offer, all from the comfort of your home, supported by our award-winning team.
- 1
Get a Free Online Estimate
Use our proprietary online calculator to find out how much you can borrow with a second mortgage and what your estimated monthly payments will be. It's a quick and easy first step that gives you the numbers you need to start planning.
- 2
Credit Summary Report
Our team will generate and review a digital credit summary report to help you understand your financial picture. This report is a clear snapshot of your credit, debt, debt-to-income ratios, and available equity. This information allows us to identify your strengths and weaknesses so we can match you with the right lenders.
- 3
Offer to Finance
Once approved, you will receive a digital offer outlining all the details of your second mortgage. This includes the interest rate, monthly payment, and a clear breakdown of all fees. We ensure every detail is transparent, so there are no surprises on closing day.
What Determines Your Rate?
Your second mortgage rate is a reflection of a lender's risk assessment of your unique financial profile. Below is a list of key factors in the order of importance that second mortgage lenders evaluate to determine the rate they are willing to offer you.
- 1
Your Loan-to-Value (LTV) Ratio
The Loan-to-Value (LTV) ratio is arguably the most critical factor. It is the percentage of your home's value that is borrowed. Lenders prefer a lower LTV because it means you have more equity, which reduces their risk.
How it works:
Your LTV is calculated by dividing your total mortgage debt (including the new second mortgage) by your home’s appraised value. For example, if your home is worth $1,000,000 and your existing mortgage is $400,000, and you want to borrow an additional $200,000, your new LTV would be 60%.
- 2
Your Property Type and Location
Not all properties are viewed equally by lenders. Urban, single-family homes in major markets like the GTA are generally considered lower-risk because they are highly marketable and easy to sell. Unique or rural properties, on the other hand, are seen as higher risk due to a smaller buyer pool. A broker can help you find a lender who specializes in your specific property type and location.
Lower Risk Properties:
- Single-family homes in urban areas
- Properties in major markets (Toronto, Mississauga, Oakville, etc.)
- Standard residential properties
- Properties with good resale potential
Higher Risk Properties:
- Rural or remote properties
- Unique or specialized properties
- Properties in smaller markets
- Properties with limited buyer appeal
- 3
Your Income and Employment
Lenders need to be confident in your ability to make your monthly payments. For salaried employees, this is a straightforward process of providing pay stubs and T4s. However, for a growing number of self-employed individuals, proving income can be a challenge due to tax write-offs. A-lenders often decline these applications. B-lenders and private lenders, however, offer a "common sense" approach.
Hourly or Salaried
- Recent pay stubs and T4s
Self-Employed
- Bank statements
- Notice of Assessment
Solution: B Lenders
Overextended or No Income
- Marketable property
- Enough equity (lower LTV)
- Exit strategy
Solution: Private Lenders
- 4
Your Credit Score and History
While home equity loans are secured by your property, your credit history still matters. Your credit score and report demonstrate your past ability to manage debt. A higher score can secure you a better rate. However, unlike traditional banks, B-lenders and private lenders are more flexible. They specialize in helping borrowers with bruised credit by consolidating debt, which helps them rebuild their credit score and eventually qualify for a lower-rate mortgage with a traditional lender.
Your Second Mortgage Closing Costs
When you take out a second mortgage, the interest rate is just one part of the total cost. Much like a real estate transaction, you will have to budget for closing costs.
Out-of-Pocket Costs
These are the costs you will pay before your loan closes.
Appraisal Fee: A home equity loan is secured by your property, so a professional appraisal is mandatory to determine its current market value. An appraisal typically costs around $450.
Costs Included in the Loan
In most cases, these costs can be built into your second mortgage, so you do not have to pay them out of pocket.
Lender and Brokerage Fees: Lenders and brokerages that specialize in alternative and private financing often charge a one-time fee, typically ranging from 2% to 4% of the loan amount. These fees compensate the lender and the broker for the increased risk and specialized expertise required to underwrite your specific deal.
Legal Fees: As the loan is registered as a charge against your property's title, you will need a lawyer to handle the transaction on your behalf, and the fees will depend on the complexity of the deal.
Closing Costs Example
- Second Mortgage Amount$100,000
- Appraisal$450
- Lender Fees$2,000
- Legal Fees$1,950
Net Cash$95,600
Get Approved Hassle-Free
Using Your Home Equity to Improve Your Life
A second mortgage unlocks the equity in your home without selling or refinancing, and can provide significant relief and opportunities. Here are some common use-cases:
Debt Consolidation
A homeowner with a $50,000 credit card balance is likely paying a minimum of $1,250 a month with an interest rate of 19%. By consolidating that same debt into a second mortgage, their monthly payment could be reduced to as little as $450 with an interest rate at 10.99%, saving the same homeowner close to $9,000 per year.
Home Renovations
If you have a one-time renovation project with a defined budget, a second mortgage can be an ideal financing tool. It provides a lump sum of cash with a fixed payment, allowing you to lock in your costs from the beginning without worrying about fluctuating interest rates.
Investment Opportunities
Savvy investors can use a second mortgage to access capital for a down payment on a second property, to finance the purchase of a rental property, or to fund a new business venture. It provides a low-cost source of capital to build future wealth.
Major Expenses
A second mortgage can be a powerful financial lifeline for planned or unexpected large expenses. Whether it’s to pay for a child’s post-secondary education or to cover unforeseen medical costs, it offers a secure and low-interest way to access significant funds.
Why Choose 360Lending?
Finding the best second mortgage rates requires professional guidance to simplify the process and ensure you get the right solution and pricing. At 360Lending, our cutting-edge digital tools and expert brokers provide our clients with unparalleled access to the best options.
Digital and Hassle-Free
Our process is designed for a seamless, digital-first experience. From using our online calculator to get an instant estimate to receiving your digital credit summary and final offer, we've removed the stress and paperwork from the traditional application process. Our platform provides you with a clear, step-by-step path to approval, all from the comfort of your home.
Supported by Human Expertise
While our process is digital, it's not automated. Our team of expert brokers provides exceptional customer service and is here to support you at every stage. We'll negotiate on your behalf with lenders to secure the most favourable terms and rates. Our job is to be your advocate, ensuring your financial story is presented to the right lender to get you the best possible outcome.
Access to the Whole Market
We don't work for a single bank. We work for you. We have established relationships with a vast network of over 100 lenders, including prime banks, B-lenders, and a curated list of reputable private lenders. This allows us to shop for the one that best suits your needs, not just the one product a single institution offers.
Over 2,000 5-Star Reviews
360Lending empowers families with tools for better decisions and prioritizes client care for success.
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