Second mortgage
Tap your home equity without refinancing the first.
You have equity in your home, but breaking your first mortgage would cost thousands in penalty — or you'd lose an excellent rate locked in two years ago. A second mortgage (HELOC or fixed term) pulls up to 80% of the value, at a higher rate but without touching the first. An AMF broker prices the full scenario for your specific need: renos, consolidation, one-time project.
Who this is for
- You have an advantageous fixed rate on your first mortgage you don't want to lose.
- You need funds to renovate (kitchen, basement, addition).
- You want to consolidate expensive debts (cards, car loans).
- You're starting a business or want to invest in another property.
- You have a one-time project (wedding, kids' education, major expense).
- You were refused an unsecured personal line of credit.
What brokers in the Courteo network look at
Second mortgages have their own mechanics — a specialized AMF broker identifies the right product (HELOC, term loan) and the right lender.
FAQ — second mortgage
Why take a 2nd mortgage instead of refinancing the 1st?
Three reasons: (1) avoid the IRD penalty (which can be $10,000-$20,000 on an advantageous fixed rate), (2) keep a historically low locked rate on the 1st, (3) meet a temporary need without redoing the whole structure.
HELOC or term loan: which to choose?
HELOC (revolving mortgage line) if flexible need, interest-only, you draw/repay at your pace — ideal for phased renovation. Term loan if specific one-time need (consolidation, single project), fixed payments, more discipline. An AMF broker from the Courteo network models both.
What rate for a 2nd mortgage?
Higher than a 1st: A lender (bank) +1.5-3%, B lender (alternative) +3-5%, private lender 8-15%. The broker negotiates the best product for your profile.
How much equity must I have for a 2nd mortgage to make sense?
General rule: your 1st doesn't exceed 65% of home value, leaving 15% extractable equity (max 80% combined LTV). Below $50,000 extractable, fees (appraisal, notary) eat the benefit — a 1st refinance sometimes becomes more relevant.
Does a 2nd mortgage affect my 1st mortgage?
No, your 1st mortgage continues with its conditions, rate, payments. The 2nd is a completely separate product added on. But in default, the 1st-rank creditor is paid first (2nd-rank logic).
Let's discuss your liquidity need.
2 minutes to start. A Courteo Prêts coordinator calls you within the day. Depending on your need (renovation, consolidation, project), the AMF broker from the Courteo network identifies if a 2nd mortgage, refinance, or HELOC is the right tool.