Second Mortgages
Access Your Equity Without Disturbing Your Bank Rate
Second mortgages designed for scenarios where the first mortgage is too good to break.
Stonefield Capital provides equity-based private second mortgages across Ontario, allowing homeowners to access capital without refinancing their existing first mortgage. We qualify files based on the combined equity position and a clear exit strategy. We look at the liquidity of the property and the viability of the exit, solving everything else with creativity and experience.
How Second Mortgages Work
A second mortgage sits behind the existing first mortgage and is secured by the same property. The borrower accesses their equity without disturbing the first mortgage, which is always ideal as bank mortgages will have a favourable rate and early payout would trigger penalties.
Stonefield Capital underwrites second mortgages based on the property's overall equity position and the borrower's plan to exit the private loan. Credit score and income documentation are not deciding factors.
Stonefield Insider Tip: Why a Second Mortgage Beats a Full Refinance
If you have a low interest rate bank mortgage, breaking it to access equity is could be a mistake. Between massive payout penalties and losing that low rate forever, a full refinance can cost tens of thousands in interest and fees. A private second mortgage is the common-sense solution, allowing you to keep your low-rate first mortgage while accessing the capital you need today. The 'blended' rate is often far lower in total cost.
Who Benefits from a Private Second Mortgage
Second mortgages serve borrowers who need to access equity without breaking their existing first mortgage.
Debt Consolidation
Consolidating high-interest debt against home equity while keeping your a low-rate first mortgage.
Self-Employed
When you have strong equity but your income doesn't fall under banks strict requirements.
Bruised Credit
Credit doesn't define you. If the equity is there, we give you the funds to help repair your score.
Home Renovations
Access capital for renovations that increase property value, funded against existing equity.
Tax Arrears
CRA or property tax arrears that need to be cleared. Short term solutions for long term peace of mind.
Business Capital
Fund your business using home equity when the bank won't give you additional funds.
The common thread: With enough available equity, it is often more cost effective to get a small second mortgage than to break your existing first mortgage.
How We Underwrite Second Mortgages
Combined Equity
We look at the current property value and first mortgage balance. This determines how much second mortgage funding is available.
LTV Position
We typically fund up to 70% LTV in major urban centres (Toronto, GTA, Vaughan, Richmond Hill) and up to 65% in secondary markets. As property liquidity reduces so does our maximum LTV.
Exit Strategy
Whether you plan to refinance back into a first mortgage, sell the property, or pay down from other sources, we need to understand the strategy to exit the private financing.
Frequently Asked Questions
What is the maximum combined LTV for a private second mortgage?
Can I pay off the second mortgage early?
What are the most common uses for a private second mortgage?
What exit strategy do you expect for a second mortgage?
Can I get a second mortgage if I already have a private first mortgage?
Submit a Second Mortgage File
Equity-based underwriting. No credit minimums. Same-day commitments.