Second mortgage calculator
Enter your home value, what you owe and the quote you were given. You get your combined loan-to-value, your equity and the full cost, in dollars. Nothing you type leaves this page.
Your results
- Equity in the home today
- Loan-to-value today
- Combined loan-to-value with the new loan
- Equity left after the new loan
- Monthly payment on the new loan
- Interest over the term
- Fees
- Total cost of borrowing
- Cost as a share of the amount borrowed
- Still owed on the new loan at the end of the term
An estimate for planning only. A lender or licensed professional must give you the real figures in writing.
See my optionsHow the calculator works
Equity is the home value minus everything secured against it: your first mortgage plus any other loans. It is a paper figure. Nobody lends all of it, and selling the home would cost money too.
Combined loan-to-value adds the new loan to what you already owe and divides by the home value. If the home is worth $800,000, you owe $400,000 and you borrow $50,000, the combined figure is $450,000 divided by $800,000, or 56.25%. The note beside the result compares your figure with the 80% ceiling that the Financial Consumer Agency of Canada gives for a second mortgage. A lender can set a lower ceiling, and the same agency gives 65% for a HELOC on its own.
Total cost of borrowing is the interest you pay over the term plus the fees: the lender fee, the broker fee, and legal, appraisal and title costs. With interest-only payments the loan itself is untouched at the end, so the calculator also shows what you would still owe. With amortizing payments some of each payment reduces the loan, so the interest is lower and the balance falls, but the monthly payment is higher.
The calculator never supplies a rate or a fee. Those come from a written quote. For a fuller picture of what each line means, read costs and fees, or compare products on the comparison pages.
Calculator questions
What is combined loan-to-value, and why do lenders care?
Combined loan-to-value (combined LTV) is every loan secured on the home, including the new one, divided by the home value. A lender on a second mortgage sits behind the first mortgage, so it looks at the combined figure to judge how much room there is if the home has to be sold.
Why does the calculator ask for the interest rate instead of giving me one?
Because any rate we showed would be a guess. Rates on second mortgages depend on the home, the first mortgage, your file and the lender. Enter the figure from a written quote and the calculator will show what that quote costs over the term.
Does the total cost include the money I borrowed?
No. Total cost of borrowing is interest plus fees. The amount you borrowed is separate, and the calculator shows how much you would still owe at the end of the term, because that is the number people forget when a loan is interest only.
Is the equity number what I can borrow?
No. Equity is what the home is worth minus what you owe. The Financial Consumer Agency of Canada says a second mortgage may be available up to 80% of the appraised value minus the mortgage balance, but a lender can set a lower limit. The calculator shows that 80% figure as a ceiling to test your plan against, not as an offer.
See what your options could be
Four short questions. A licensed mortgage professional in your province may call you if you agree. You are not committing to anything by asking.