A private second mortgage sits behind your first mortgage and lets you borrow against equity without touching a cheap first. In November 2026 it costs 9.49% to 14.99% interest-only, depending on combined loan-to-value, plus a 2-3% lender fee (often with a $1,500-4,000 minimum), a 1-2% broker fee and $1,500-2,500 in legal costs. Lenders stop at 80% combined loan-to-value in the big cities and 70-75% elsewhere. On a $120,000 second the all-in APR is about 18%. On a $50,000 second it is about 21%, because the fixed fees are the same. It funds in 5-10 days and should be paid out by a refinance within 12-24 months.

Why a second instead of a new first

Say your first mortgage is at 4.5% with two years left. Replacing it with a private first at 9% to raise $120,000 means paying 9% on the whole balance. A second leaves the first alone and charges the higher rate only on the new money. On a $480,000 first at 4.5% plus a $120,000 second at 11.99%, the blended cost is about 6%. That arithmetic is why seconds are the most common private product in Canada.

How much you can borrow

Home value	First mortgage	Max second at 75% CLTV	Max second at 80% CLTV (cities)
$700,000 (Calgary, Hamilton, Abbotsford)	$420,000	$105,000	$140,000
$900,000 (Surrey, Mississauga, Edmonton infill)	$480,000	$195,000	$240,000
$1,400,000 (Vancouver, Toronto)	$600,000	$450,000	$520,000

Based on appraised value, not assessed value. Fees come off the advance, so you receive less than the registered loan.

Second mortgage rates, November 2026

Combined loan-to-value	Rate	Lender fee
Up to 65%	9.49-10.99%	2% (min $1,500-2,500)
65-75%	10.99-12.99%	2-3%
75-80%	12.99-14.99%	3% (min $3,000-4,000)

Interest-only, 12-month terms. Alberta is about 1% lower at each band. Add a 1-2% broker fee and $1,500-2,500 legal. Work out your own numbers with the second mortgage calculator.

Second mortgage lenders in Ontario, BC and Alberta

Most second mortgage lenders deal only through licensed brokers. These are the ones that publish second-mortgage limits or lend seconds in each province.

Province	Second mortgage lenders	What they publish
Ontario	BFT MIC (Hamilton), CMI Financial Group, Magenta Capital, Westboro Investment, Hosper Mortgage, Tribecca Finance	BFT: firsts and seconds, $50K-$5M, fully open. Westboro: broker-sourced only.
BC	Three Point Capital, VWR Capital, Shelter Lending, Privan Capital, Alta West Capital	Three Point: seconds to $500K, up to 75% LTV. VWR and Shelter: no minimum credit score.
Alberta	Alta West Capital, Calvert Home Mortgage, Three Point Capital, VWR Capital, Shelter Lending, Privan Capital	Calvert: funds in 1-2 days in Alberta. Privan: 75% LTV urban, 65% rural.

Checked on each lender's site, 5 November 2026. The full lender list.

The $50,000 second that nets $46,500

This is the example borrowers complain about most on Canadian forums. See it before you apply. A $50,000 private second at 11.99% with a 2% lender fee (minimum $1,500), a 2% broker fee, $1,600 legal and a $400 appraisal: fees total $4,500. You receive about $46,500. You pay interest on the full $50,000, about $500 a month. Over 12 months that is $10,495, an APR of about 21%. If the need is $50,000, a $60,000 second to cover the fees is often the honest structure. If the need can wait three months, a B-lender refinance of the whole mortgage is usually cheaper. We show both.

Debt consolidation: when the math works and when it does not

Debt	Balance	Rate	Monthly now
Three credit cards	$42,000	20.99%	$1,260
Line of credit	$28,000	10.45%	$560
Car loan	$24,000	8.9%	$610
CRA balance	$16,000	10% + penalties	$700
Total	$110,000		$3,130
Private second, $120,000 at 11.99%, interest-only	$120,000	APR about 18%	$1,199

Cash flow improves by about $1,900 a month and the CRA problem is gone. The catch: the balance does not fall, because the payment is interest-only. The consolidation works only if the $1,900 a month is used to clear the second or to qualify for a B-lender refinance at month 12. Without that step the second renews with a new fee and you pay 12% forever. We put the exit in writing and check in at month nine.

Equity take-out for a purchase or investment

A second on your home can fund a down payment on a rental, close a court-ordered sale that needs a quick subject-free offer, or pay for a renovation before a sale. Investors in BC and Alberta use it to close in 7-10 days and refinance the new property with a bank once they own it. The exit is the new property's mortgage. It must be realistic under the stress test before we fund.

Province differences

BC

80% combined in Metro Vancouver and Victoria; 70-75% in the Okanagan and on the Island. Strata documents up front. BC rates.

Alberta

Seconds about 1% cheaper than BC and Ontario; 80% combined in Calgary and Edmonton, 65-70% in smaller centres, 50-60% on acreages. Alberta rates.

Ontario

80% combined in the 416 and 905; written disclosure two business days before signing; a second lender can start power of sale on its own. Ontario rates.

Already have a second? A third mortgage is possible but costly; a bigger second usually beats it. For a business or investment building, see private commercial mortgages.

Second mortgage questions

How does a second mortgage work?

It is a separate loan registered on title behind your first mortgage. Your first mortgage stays as it is. The second lender gets paid after the first if the house is sold. Because it is second in line it costs more, and it is written for 12 months so you can refinance both into one mortgage later.

Will my first mortgage lender know, or object?

They will see it on title. Most mortgages do not prohibit a second. Collateral-charge mortgages, common at some banks, are registered for more than you owe and can block or limit a second. We check the registration before promising anything.

Second mortgage or HELOC with bad credit?

A HELOC needs bank qualification: income, stress test and usually a score above 680. If you have that, take the HELOC: it is priced at prime (4.70% since 29 October 2026) plus a margin set by the bank. If you do not, the private second is the tool, with a plan to replace it with a HELOC or B-lender refinance once credit and documents allow.

Can a second mortgage lender foreclose or start power of sale?

Yes. In Ontario a second lender can serve a Notice of Sale on its own default. In BC and Alberta it can petition the court. Never miss a payment on a private second. If trouble is coming, call before the payment date.

Does a private second report to the credit bureaus?

Usually not. It will not rebuild your score. The consolidation it funds will, because the cards are paid and your utilisation drops. That is what makes the B-lender exit possible at month 12.

Sources. WOWA, private mortgage and second mortgage guides · RichView Capital, second mortgage Ontario (net-advance example) · RedFlagDeals borrower threads on second-mortgage fees · Mortgage Directory private rates, October 2026 · provincial cost-of-borrowing regulations.

Real people, not a call centre

Talk it through with a licensed broker before you decide

Tell us what is going on in a few lines. We call you back the same day with what lenders will say, what it costs in dollars, and how you get back to a bank. If private is the wrong tool, we say so.