A second mortgage can be a powerful way for Ontario homeowners to unlock equity without refinancing their first mortgage.
With the Greater Toronto Area’s average home price sitting at $1,101,691 (June 2025, WOWA) , many households have significant equity available to tap into.
Use our Second Mortgage Calculator to estimate your borrowing power and understand how much you could qualify for depending on the lender type.
Ontario Housing Market Snapshot
To put things in perspective:
Since most second mortgage demand in Ontario comes from the GTA, we will use $1,101,691 as the benchmark property value in our examples.
How Much Can You Borrow on a Second Mortgage in Ontario?
The maximum loan-to-value (LTV) ratio varies depending on the lender. There is no single province-wide rule; instead, borrowing power depends on lender policies and your financial profile.
Prime Lenders (Banks & Credit Unions)
- Typically allow up to 80% combined LTV (existing mortgage + second mortgage).
- Example: GTA home worth $1,101,691 with a $400,000 first mortgage → max combined = $881,352 → available second mortgage equity = $481,352.
HELOCs (Home Equity Lines of Credit)
- Often capped at 65% LTV when used independently.
Private Lenders
- May approve up to 95% LTV, depending on the property and borrower profile.
- Expect higher rates and fees compared to prime lenders.
Specialized Programs (e.g., Sagen)
- Certain insured programs allow up to 95% combined LTV on purchase transactions.
Flexible, Case-by-Case Lenders
- Some will consider 75 – 80% LTV, and in specific cases, up to 85% if the property is already sold or has unique characteristics.
Second Mortgage Calculator: GTA Example
Here’s how much equity could be available on a $1,101,691 GTA home with a $400,000 existing mortgage:
| Scenario | Home Value | Existing Mortgage | Max Combined LTV | Max Second Mortgage Equity |
|---|---|---|---|---|
| Prime Lender (80%) | $1,101,691 | $400,000 | $881,352 | $481,352 |
| Private Lender / Sagen (95%) | $1,101,691 | $400,000 | $1,046,606 | $646,606 |
| Flexible Case-by-Case (85%) | $1,101,691 | $400,000 | $936,437 | $536,437 |
Use Our Second Mortgage Calculator
You can estimate your own borrowing power by entering your property value, existing mortgage balance, and lender type into our Second Mortgage Calculator.
Why Lender Choice Matters
Second mortgage borrowing limits are not the same across Ontario. They depend on:
- Lender policies
- Property type
- Borrower profile
Key Differences by Lender Type:
- Prime lenders: Lower cost but capped around 80% LTV.
- Private lenders: Higher cost but more equity access (up to 95%).
- Programs like Sagen: Niche solutions with higher borrowing potential.
- Case-by-case lenders: Flexible options for special circumstances.
This is especially important in high-value areas such as Toronto, Mississauga, Oakville, Burlington, Hamilton, Ottawa, and across the GTA, where even small differences in LTV percentages can mean hundreds of thousands in extra borrowing power.
Conclusion
With average GTA home values now above $1.1 million, Ontario homeowners have significant equity that can be accessed through a second mortgage.
- Prime lenders generally allow up to 80% LTV.
- Private lenders and insured programs may extend borrowing up to 95% LTV.
- Flexible lenders can sometimes push to 85% LTV on a case-by-case basis.
Use our Second Mortgage Calculator to see how much equity you could access today and connect with an FSRA-licensed mortgage broker to compare options and secure the right solution for your financial goals.
