Second Mortgage & Home Equity Calculator
A second mortgage is limited by the combined loan-to-value across every charge on the property. Enter your numbers to see how much equity is actually accessible behind your existing first mortgage.
Your numbers
Current loan-to-value: 56.4% · Equity in the home: $480,000
Available at 80% LTV
Typical institutional limit
Interest-only payment at 10.99%: $2,381 per month
Available at 85% LTV
Common alternative / private limit
Interest-only payment at 10.99%: $2,885 per month
Estimate only. Lender limits vary by property type, location, income and credit, and a lender appraisal governs the value used. Not an offer or a commitment to lend.
Questions about second mortgage LTV
- How is loan-to-value calculated on a second mortgage?
- Add your first mortgage balance and the new second mortgage together, then divide by the appraised value of the home. That combined figure is what a lender is looking at, not the second mortgage alone.
- What loan-to-value will a second mortgage lender go to in Toronto?
- Institutional lenders generally cap total borrowing at 80% of value. Alternative and private lenders in Toronto commonly go to 80-85%, and occasionally higher on strong, liquid urban properties.
- Does the home value I enter need to be an appraisal?
- For an estimate, a realistic market value is fine. Lenders will require an appraisal, and if it comes in below your estimate the available funds drop accordingly.
More detail on second mortgages in Toronto and home equity loans.
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Find out what a lender will really advance
Send your property details and first mortgage statement and we will confirm the available equity and the cost.
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