Yes, but only from private lenders, and only with real equity left. A third mortgage sits behind your first and second, so it is paid last if the home is sold. Banks, trust companies and credit unions generally don't offer them, and many mortgage funds avoid them. Lenders that do usually keep all three mortgages within about 75-80% of the home's value, charge more than a second, and lend for 6-24 months. Before taking one, check whether replacing your second mortgage with a bigger one is cheaper.

How does a third mortgage work?

Mortgages rank in the order they are registered on title. In BC, the Land Title Act says charges rank by the date and time they were registered, not when they were signed. The first mortgage is paid first from a sale, then the second, then the third. Your monthly payments go to each lender separately.

Tap a sale price to see who gets paid. The example home has a $480,000 first, a $120,000 second and a $60,000 third.

Everyone is paid, and you keep $195,000

1st $480K2nd $120K3rdYou $195K

After about $45,000 of selling costs, $855,000 is left. The first, second and third are paid in full, in that order.

Everyone is paid, and you keep $24,000

1st $480K2nd $120K3rd

Selling costs of about $36,000 leave $684,000. All three are paid; only $24,000 is left for you.

The third lender gets nothing, and so do you

1st $480K2nd $108Kcosts

Selling and enforcement costs of about $52,000 leave $588,000. The first is paid, the second is $12,000 short, and the third gets nothing. That is why third lenders are rare and expensive.

Illustration only. Real selling and legal costs vary, and the order of payment can change if a lender agreed in writing to rank behind another.

How much can you borrow on a third mortgage?

Add up everything you owe on the home, then compare it with the value. Most third lenders stop at about 75-80% combined in big cities, and lower elsewhere. Try your numbers:

Home value

Mortgage you owe now

Where the property is

How much you want to borrow

You could borrow up to

$0

Mortgage you oweNew loanEquity you keep

Combined loan-to-value
Likely second-mortgage rate
Interest-only payment
Equity you keep

Check my options with these numbers

Estimate only, as of November 2026. Lenders use the appraised value, not the assessment. Fees come off the advance.

What does a third mortgage cost?

More than a second. Third lenders take the most risk, so rates sit above the 9.49-14.99% range for private seconds, with lender and broker fees on top, interest-only. Because the fees are partly fixed, a small third can carry a very high APR. You get the rate, fees and APR in writing before you commit.

Advisor going over paperwork with a young couple on their living-room sofa as they sign — Before a third mortgage, we price a bigger second, a refinance of both, and a B-lender. A third is the last of those, not the first.

What should you try before a third mortgage?

A bigger second mortgage

Pay out your current second with a larger one. One fee, one payment, often a lower rate. Second mortgages.

Refinance into one mortgage

A B-lender at 6-8.5% may replace the first and second together if credit allows. B-lender mortgages.

Consolidate the debts

If the money is for debts, one loan with a plan to clear them beats three on title. Debt consolidation.

Sell on your own terms

If the numbers don't fit, a planned sale keeps far more equity than a forced one.

When does a third mortgage make sense?

Your first and second have low rates or big penalties, and you need a modest amount for a short time.
You have a firm exit within 6-24 months: a sale, an inheritance, a business payout or a refinance once credit recovers.
There is still equity left after all three mortgages, so a sale would pay everyone.

Third mortgage questions

Do I need my first and second lenders' permission?

Usually not, but read your mortgage terms. Some mortgages, and many collateral-charge bank mortgages, limit further borrowing. Your existing lenders will see the new charge on title.

Can a third mortgage lender start power of sale?

Yes. In Ontario any mortgage lender in default can serve a Notice of Sale after 15 days, giving at least 35 days to pay. It must also notify the lenders behind it. In BC and Alberta the third lender can go to court. Never fall behind on any of the three.

Who offers third mortgages?

Private lenders, mostly individuals and some smaller private lending companies, through mortgage brokers. Banks, trusts and credit unions generally don't.

How long is a third mortgage?

Usually 6-24 months, interest-only. It is a bridge to a sale or refinance, not a long-term loan.

Sources. BC Land Title Act, s. 28 (priority of charges) · Ontario Mortgages Act, Part III · Atrium MIC residential products (second mortgages to 75% combined) · private second-mortgage rates from files we placed, November 2026. Checked 5 November 2026.

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.