Significance

• With a second mortgage in Canada, it is easy to get approved as long as you have equity in your property. Approval for a second mortgage in Canada is based less on your credit and income qualifications and more on how much equity you have invested into your home.
  
  

Features

• A second mortgage in Canada can be expensive because the interest rate is significantly higher than it is for a first mortgage. Interest rates in second mortgages in Canada are often in the 10 to 20 percent range.
  
  

Benefits

• When you take out a primary mortgage, the money is used to buy the home, and you are usually only financed for the selling price of the home; however, with a second mortgage, you can use the money for what you want to use it for, like a vacation home or a home remodel.