Second mortgages in Calgary, explained on camera by a licensed broker.

A second mortgage is a loan registered in second position on the title of your home, behind your existing first mortgage. In Calgary it's typically funded by private investors or a Mortgage Investment Corporation (MIC). Homeowners use second mortgages to consolidate debt, lower monthly payments, catch up on property taxes, pay off CRA, or fund a business — even when their bank has said no.

If we move quickly, you can have a cheque in your hand in as little as 2 to 4 business days. The process is three steps: a 7–8 minute application (phone or secure online link), establishing your property value, and funding.

No. Unlike a line of credit, a second mortgage from a private lender is approved based on the equity in your home (or any other real estate you own). That's why Calgarians use them when the bank has said no — bad credit, self-employed income, behind on taxes, or previously bankrupt situations are all workable.

A line of credit has a lower rate and is more flexible, but you need good credit and provable income to qualify. A second mortgage is more expensive, but qualifies you based on equity rather than income. If you can get a HELOC, take it. If you can't, a second mortgage is usually the next best tool.

Three methods are accepted, depending on the lender: your annual City of Calgary property tax notice, an online estimate from HonestDoor.com, or — most reliably — a certified professional appraisal that compares your home to three similar properties sold in your area in the last 90 days.

Anything. The most common uses are consolidating credit cards and loans into one lower payment, paying off CRA debt, catching up on property taxes, stopping a foreclosure, or funding a business. Because the loan is secured by your property, there are no restrictions on how the funds are spent.

A lenders are the big banks (CIBC, Scotia, TD) and monolines like First National, CMLS, and RMG — lowest rates but the strictest qualification rules. B lenders are more forgiving on credit score, debt ratios, and proof of income, which is why roughly 25% of self-employed Canadian homeowners are funded by a B lender. If your bank said no, a B lender is often the next step before a private second mortgage.

On a conventional (uninsured) mortgage, the lender qualifies you at the higher of the Bank of Canada qualifying rate (currently 5.25%) or your contract rate plus 2%. It exists to make sure you can still afford the payment if rates rise.

Yes. The challenge is that banks qualify on your Line 150 income, which is usually much lower than your real business income because your accountant minimizes taxes. CMHC has a self-employed program (with 10% down) that adds back a percentage of business income, and B lenders like Home Trust and EQ Bank can use bank statements instead of tax returns.

Bridge or interim financing is short-term cash that lets you access the equity in your existing home to fund a new purchase before your current home has sold. It's most often used when the closing dates don't line up, but it also works any time you need short-term money against a property with usable equity.

Often yes, as long as there is usable equity in the property. In one Calgary example, a homeowner four months behind on a $475,000 first mortgage against a $650,000 home used a $45,000 second mortgage to bring the mortgage current and end the foreclosure. The earlier in the process you call, the more options remain.

A demand letter from the lender's lawyer usually gives you 10 to 15 days to bring the mortgage up to date. If you don't, a statement of claim is filed with the Court of King's Bench and you are personally served with 20 days to respond. With appreciable equity a judge will often grant a redemption order of three to six months; with little equity the property can be listed and sold.

Yes. CRA can place liens on and seize property, garnish wages, and freeze bank accounts. A second mortgage against your principal residence, a revenue property, or bare land can clear the debt. One Calgary business owner recently raised $73,000 at $753 per month to settle corporate and personal tax arrears.

Yes, with enough down payment or equity. With 20% down or 20% equity, a B lender will often approve you at roughly 0.5% to 1% above A-lender rates. The usual plan is a one to two year term while you rebuild your score, then a move to an A lender. After a bankruptcy, 25% to 30% down opens B lender or private options.

A minimum of 20% for a revenue property, compared with as little as 5% on a primary residence. Rental rates typically run 0.5% to 0.75% higher, and lenders assess the property's income-generating potential alongside your personal income.

BRRRR stands for buy, rehab, rent, refinance, repeat. Because banks rarely want to lend for just three to six months, most BRRRR deals are funded by flexible private lenders who supply the short-term capital, then the property is refinanced into longer-term financing once it is rented and revalued.

Yes, though it depends on the situation. Because second mortgages require monthly payments, they suit seniors with stronger assets and cash flow. Where income is limited, a CHIP reverse mortgage is often the better fit since it requires no monthly payments and no proof of income.

Usually about four to five business days, sometimes sooner. The process is an application and equity calculation, gathering documents (often just a mortgage statement, city tax assessment, and void cheque), shopping banks and lenders for the best overall deal, then presenting the offer.