Second Mortgage Rates in Ontario
Shopping for a second mortgage rate in Ontario? Here’s where things stand right now — plus the honest explanation of why second mortgage rates sit higher than first mortgage rates, and what actually determines the rate you’ll be quoted. All rates are subject to approval and can change without notice.
Current Rates at a Glance
- Second mortgages: from 6.50%
- 5-year fixed (first mortgage / refinance): from 4.15%
- 5-year variable (first mortgage / refinance): 3.70%
- HELOC: priced at prime — currently 4.70%
These are starting points, not promises. Your actual rate depends on your equity, credit, income, and property — and second mortgage rates vary more than most, because lenders price each file on its own risk.
Why Second Mortgage Rates Are Higher
A second mortgage sits behind your first mortgage in payout order. If the home were sold, the first mortgage gets paid in full before the second lender sees a dollar. That extra risk is why second mortgage rates start higher than first mortgage rates — and why the gap between a strong file and a weak one is wider here than anywhere else in mortgage lending.
The flip side: a second mortgage still costs far less than credit cards or unsecured loans, and it leaves a good first mortgage rate untouched. For many Ontario homeowners, that’s the right trade. See how second mortgages work.
What Affects Your Second Mortgage Rate
- Your equity position — the more cushion above the 80% limit, the better the pricing. Check your number.
- Your credit — strong credit opens bank and alternative lenders; bruised credit usually means private lenders and higher rates. It’s not a dead end — see bad-credit options.
- Your income — lenders need to see you can carry both payments.
- Your property — marketable homes in stable Ontario markets price better.
- The lender type — banks are cheapest but strictest; alternative lenders balance flexibility and price; private lenders are the most flexible and the most expensive.
Fees to Budget For
Rate isn’t the whole cost. A second mortgage can also involve an appraisal fee, legal fees to register the charge on title, and lender or broker fees that vary by lender type. Ask for every fee in writing before you commit — we lay them out upfront, before anything is signed.
How to Get Your Actual Rate
Online rates are a starting point. Your real number takes about 15 minutes: tell us your home’s value, what you owe, and what you need the money for, and we’ll quote the lenders that fit your file — banks, alternative, or private — with the fees included, so you can compare the true cost. No obligation, and if a second mortgage doesn’t beat your alternatives, we’ll tell you.
Comparing structures first? Equity takeout vs. HELOC breaks down the other way to borrow against your home, and consolidating debt into your mortgage shows the math on rolling cards and loans into one payment.
Frequently Asked Questions
Are second mortgage rates fixed or variable?
Both exist. Many second mortgages are fixed for their term; some are variable. We’ll show you both where there’s a real choice.
Why is my quote higher than the “from” rate?
“From” rates go to the strongest files — lots of equity, strong credit, easy property. Your quote reflects your file’s risk. A broker’s job is to find the lender that prices your file best.
Can I get a second mortgage rate with bad credit?
Yes, usually through alternative or private lenders. Expect a higher rate, and weigh it against what you’re paying now — 19% credit cards make the comparison easier than you’d think.
Do second mortgage rates change with the Bank of Canada?
Variable rates move with prime. Fixed rates follow the bond market and lender pricing — they can change at any time, which is why a quote has an expiry.
How long is a rate quote good for?
It depends on the lender. When we quote you, we’ll tell you exactly how long the number holds.
Direct: 647-627-8648 · Toll-Free: 1-800-820-5188 · Principal Broker Lic. #M13001328 · Allen Brothers Circle Inc. — Brokerage Licence #13392 · 2540 William Jackson Dr, Pickering, ON L1X 0E4
Want your real number? Apply now or call 647-627-8648 (direct) / 1-800-820-5188 (toll-free). Free consultation, zero pressure.
Related: Equity Takeout & Second Mortgages · Second Mortgages in Ontario · Equity Takeout With Bad Credit · Equity Takeout vs HELOC