Second Mortgage

Second mortgages are a temporary solution and must be used carefully. They are usually fully open (no penalties) interest only mortgages with a 1 year term. Can be used for debt consolidation, to pay out any mortgage and tax arrears or business purposes.

Initial consultation

Figure out if there any financial problems and a way to fix them. Talk about short and long term goals.

Application and document collection

Fill out a mortgage application as detailed as possible. So there are no assumptions. Collect all the documents needed upfront, so we don't have chase them later in the process.

Pre qualification and documents review

Review all the documents and figure out the mortgage amount you will qualify for. Qualification is based more on the actual property, not personal income or credit.

Submit application to the lender

We submit the application to the lender.

Review lender commitment

Lender will issue a mortgage commitment, we review it to make sure everything is correct and to our liking.


Do an appraisal of the property. Usually required.

Lender conditions

Submit all the documents to the lender to satisfy any conditions.

Lawyer instructions

In the meantime lender will send instructions to the lawyer to prepare all the documents needed for closing. They will discharge the old mortgage and register the new one.

Independent legal advice

You might have to get ILA from a separate lawyer not involved in the transaction. They will review the mortgage documents with you, to make sure you are fine with all the terms and conditions.


Make an appointment with the lawyer to sign all documents and finalize the deal.

This is the breakdown of second mortgage process. To get started or if you have any questions, call 647-870-7004.