Second mortgage: borrow
against your equity —
without touching your first.

It's a loan secured against your home that's registered in second position — behind your existing first mortgage. If the home were ever sold, the first lender is paid out in full before the second lender sees a dollar. Because the second lender takes more risk being behind the first, the rate is higher — but you only pay it on the amount you borrow, not your whole mortgage.

If your first mortgage is at a low rate or carries a steep break penalty, refinancing can be expensive — you'd re-price your entire balance at today's rates and pay the penalty. A second mortgage leaves your cheap first alone and layers a smaller loan on top. We always model both side by side; sometimes a refinance wins, sometimes the second does. The math decides.

A HELOC is revolving, interest-only credit, usually from an A-lender at prime-plus. At federally regulated lenders the revolving HELOC portion is capped at 65% of your home's value (80% combined with an amortizing mortgage), and requires solid credit and income to qualify. A second mortgage is broader — it can be a fixed lump sum, can come from a B-lender or private lender, and can approve when a HELOC won't (bruised credit, self-employed, higher LTV). If you qualify for a HELOC it's often cheaper; if you don't, a second mortgage is the route.

It depends on combined loan-to-value — your first mortgage plus the new second, against your home's value. B-lenders generally cap around 80%; private lenders go to 80–85% in strong urban markets. Example: a $700k home with a $400k first allows roughly $160–195k total in second-position room depending on the lender and location.

Yes — second mortgages are one of the most credit-flexible products because they're equity-based. Private and MIC lenders care primarily about the home's value and your equity, not your beacon score. The rate is higher to reflect the risk, but it can be a fast way to consolidate high-interest debt and, with on-time payments, help rebuild your credit.

B-lender seconds typically price a few points over first-mortgage rates; private/MIC seconds run higher — illustratively around 9–13% plus a lender fee of ~1–2% and a broker fee of ~1–2% (typically 2–4% combined) as of August 2026. All fees are disclosed upfront. Because you're only paying it on the smaller second amount, the dollar cost is frequently lower than refinancing the whole first.

A private second can fund in as little as 1–2 weeks once we have an appraisal and instruct the lawyer — sometimes faster in a true emergency. B-lender seconds take a bit longer, typically 2–4 weeks. If you're facing a deadline like tax arrears or a closing, tell us and we'll prioritize.

Your first lender usually doesn't approve the second, but some mortgage terms restrict additional borrowing, and collateral charges registered above the loan amount can complicate it. We review your charge terms before applying. The second is registered on title behind the first, so it becomes a matter of record.

The smart play is to treat the second as temporary. At renewal, if your combined balance is within ~80% of the home's value and you qualify under the stress test, we can refinance the first and second into one new mortgage at a single rate. If not, we'll plan a step-down: pay the second down, or refinance it with a B-lender first. We set that trigger date the day we fund.

Often, yes — pulling equity from your existing home via a second to fund a down payment on a rental or second property is a common strategy. Lenders on the new purchase will factor the second-mortgage payment into your qualifying, so we model the full picture across both properties before you commit.