Second mortgages, by reason you need the money

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  Bad credit second mortgageHomeowners with missed payments, collections or a low credit score who have real equity and need a way to borrow that a bank has declined.

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  Bank and B-lender second mortgagesHomeowners comparing lender types for a second mortgage, who want to know why the prices differ and which option to try first.

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  Bridge and interim financingHomeowners who must close on a new property before selling their current one and need short-term funds secured against the home they are leaving.

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  Business purpose equity loanOwners of established small businesses who have equity in their own home, a clear use for the money, and a repayment plan that does not depend on one good month.

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  Debt consolidation second mortgageHomeowners with high-interest card, loan or line of credit balances and enough equity, who can afford the new payment and have a plan to clear the loan.

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  Down payment or investment from equityHomeowners with real equity who are considering a second property, an investment or a child's purchase, and who can carry the loan if the new asset earns nothing.

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  Equity takeout refinanceHomeowners with a sizeable amount of equity who are weighing a bigger single mortgage against keeping their existing one and adding a second loan.

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  Estate and inheritance buyoutHeirs or executors who want to keep a family home, have agreed or been told what each share is worth, and can carry the new debt without the other heirs' help.

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  Home equity loanHomeowners with a one-time, known cost and enough equity who prefer fixed payments and a set end date to a revolving line of credit.

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  Mortgage renewal with payment shockHomeowners whose mortgage term is ending and whose renewal payment is higher than their budget can carry, and who are weighing every option.

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  Private first mortgageHomeowners whose bank first mortgage cannot be renewed or replaced, or who need a first charge on a property or file that banks will not lend on.

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  Renovation financingHomeowners with a quoted renovation, solid equity and a firm budget, who were turned down or limited by a bank and can carry the extra interest.

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  Rental property second mortgageLandlords with equity in a rental home or unit, a clear use for the money, and rent that covers the new payment with room to spare.

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  Reverse mortgageHomeowners aged 55 or older who live in the home, own it with substantial equity, and want cash without monthly payments, understanding that the debt grows and reduces what is left.

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  Rural, acreage and non-standard homesOwners of acreage, hobby farms, cottages used as homes or unusual properties, who have equity but have been told the property is outside what their bank will lend on.

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  Self-employed second mortgageBusiness owners, contractors and commission earners whose tax returns understate what they take home and who hold equity in their home.

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  Separation and spousal buyoutSeparated or divorcing owners who want to keep the home, have a figure agreed or ordered for the other person's share, and can afford the debt on one income.

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  Third mortgageOwners who already carry two loans on the home, have equity left after both, and need a specific sum that a refinance or consolidation of the existing loans cannot provide.

How to read these pages

Every page on this site follows the same order. It starts with a direct answer, then explains who the product suits and who should look elsewhere. It shows a worked cost example with every fee on its own line, and it ends with the exit plan, because the way out matters more than the way in.

The dollar figures in worked examples are made up to show the arithmetic, and they say so. Real rates and fees depend on the home, the first mortgage, your file and the lender. For province rules and local prices, start from the province pages. To work out your own numbers, use the calculator.

Not sure which type fits? Read the guides first, or check your options and let a licensed professional explain the choices that apply to your province.