FSRA Lic. #13722info@stonefieldcapital.ca

For Mortgage Brokers

Private Second Mortgages in Ontario — For Brokers Placing Behind a Bank First

When your client needs cash behind an existing first and the bank says no, a private second can solve it. Here is how Stonefield Capital funds second mortgages for Ontario brokers.

Stonefield Capital is an FSRA-licensed private second mortgage lender (Brokerage #13722) for Ontario brokers. We fund second mortgages on residential and commercial property based on available equity and a clear exit — not credit score or income — so clients with bruised credit or unverifiable income still qualify. Same-day commitments; closings in as little as 48 hours.

When a private second mortgage makes sense

A second mortgage lets your client access home equity without disturbing a low-rate first. Brokers place seconds with Stonefield to consolidate high-interest debt, fund a renovation, cover a tax or business shortfall, bridge a timing gap, or stop a power of sale. Because we sit behind the existing first, we focus on the combined loan-to-value, the property, and how the loan gets repaid — not the client's credit score.

How Stonefield underwrites seconds

We qualify on equity and exit strategy. As long as there is sufficient equity and a viable repayment plan — sale, refinance, or income event — low income and poor credit are not barriers. We rarely require full income documentation and frequently do not condition for an appraisal. You will get a straight answer the same day on whether the file fits.

Indicative second-mortgage pricing

Second-position rates generally range 9.99–10.99% in the GTA, 10.99–11.99% in secondary markets, and 10.99–13.99% in tertiary markets, with lender fees of roughly 2.0–4.0%. Pricing improves with lower loan-to-value, provable income, shorter terms, and a clean exit. Legal fees are typically around $3,000 per transaction. Rates are indicative and subject to underwriting approval.

Submitting a second to Stonefield

Send the property, the existing first balance, the requested second amount, the borrower's situation, and the exit. We issue same-day commitments and can close in as little as 48 hours; standard timelines run three to four business days from signed commitment and legal retainer to funding. You keep the client; we are the lender behind the deal.

Which product fits the deal

ScenarioProduct
Consolidate high-interest debt behind a firstPrivate Second Mortgage
Pull equity without touching a low-rate firstEquity Take-Out
Homeowner behind on payments / power of salePower of Sale Refinance
Short-term cash need with a clear exitBridge Loan

Frequently Asked Questions

Who lends second mortgages in Ontario?
Private lenders and the FSRA-licensed brokerages that place their deals fund most second mortgages in Ontario, because banks rarely lend in second position. Stonefield Capital (FSRA Mortgage Brokerage #13722) funds private second mortgages for brokers across Ontario.
Can a client get a second mortgage with bad credit?
Yes. Stonefield qualifies on property equity and exit strategy rather than credit score, so bruised credit and low or unverifiable income are not barriers as long as there is sufficient equity and a viable way to repay the loan.
How much can a client borrow on a second mortgage?
It depends on the combined loan-to-value the property supports. In the GTA we generally lend up to about 70% combined loan-to-value, with lower thresholds (around 65%) in secondary and tertiary markets. The available second is the room between the existing first and that ceiling.
What are private second mortgage rates in Ontario?
Second-position rates generally range 9.99–10.99% in the GTA, 10.99–11.99% in secondary markets, and 10.99–13.99% in tertiary markets, with lender fees around 2.0–4.0%. Rates are indicative and subject to underwriting approval.
How fast can a second mortgage close?
Stonefield issues same-day commitments and can fund in as little as 48 hours on a clean file, with standard timelines of three to four business days from signed commitment and legal retainer to funding.

Have a deal that fits?

Submit it and get a read the same day. You keep the client — Stonefield is the lender behind the deal.