Second Mortgages in London
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A second mortgage is a loan registered behind the mortgage you already have, secured by the equity in your London home. It lets you borrow a lump sum without breaking your first mortgage or losing its rate. Mortgage Broker Store arranges second mortgages for homeowners across London, Ontario, from Byron and Westmount to Old North, Masonville and the east end, usually within one to two weeks of the appraisal. Our guide to second mortgages in Ontario covers the provincial rules, rates and criteria; this page covers what applies in London.
Most London homeowners who call us are carrying credit-card or unsecured debt at 20% to 29%. Moving that debt into a single second mortgage at a lower rate cuts the monthly outlay and leaves one payment instead of several.
Common Uses of a Second Mortgage in London
- Consolidating high-interest debt into one lower monthly payment.
- Renovations that add value before a sale or refinance.
- Tuition and living costs for students at Western University or Fanshawe College.
- Catching up on mortgage or property-tax arrears, including stopping a power of sale once a notice has been served.
- Bridging a gap between a purchase closing and a sale.
Working with a Second Mortgage Broker in London
The process is the same whether you are in London or anywhere in Ontario, and it is handled remotely. We start with a short equity review: what your home is worth, what is owing on the first mortgage, and what the money is for. If the numbers work, an appraisal is ordered, we match the file to a lender whose criteria fit, and a commitment is usually issued within a few days. Signing is done with a London lawyer of your choice. Most files fund within one to two weeks, and urgent files, such as a pending power of sale, are prioritized.
You deal with one broker throughout. We negotiate the rate and fees with the lender, explain every cost before you sign, and never charge an upfront fee to review your situation.
Who Funds Second Mortgages in London
Second mortgages are usually funded by private lenders rather than banks, because banks rarely register behind another lender. Approval is based on the equity in the property, not on income or credit score, and the maximum is 75% of the appraised value across the London market. Read more about how private mortgage lending in Ontario works.
Bad Credit Second Mortgages in London
A low credit score, a past consumer proposal or a recent bankruptcy does not stop a second mortgage. Because the loan is secured by home equity, the lender’s questions are about the property and the exit plan, not the credit report. Many London clients use a one-year second mortgage to consolidate the accounts that are hurting their score, then refinance with a bank once the score has recovered. See our bad credit mortgages in Ontario page for the full criteria.
Second Mortgage Appraisals in London
Every second mortgage needs a current appraisal, because the amount you can borrow is calculated from the appraised value, not the tax assessment or a listing estimate. The appraiser inspects the home, notes its condition and recent sales of similar London properties, and reports a value within a few days. The cost is about $600 plus HST, paid directly to the appraisal company. A higher appraisal means more room to borrow, so it is worth having the property tidy and accessible for the visit.
Second Mortgage or Refinance in London?
Refinancing replaces your first mortgage with a larger one. It makes sense when your current rate is high, the penalty to break it is small, and your income and credit qualify with a bank. A second mortgage makes more sense when the first mortgage has a low rate you want to keep, the break penalty is steep, or a bank refinance is not available right now. It costs more per year, but only on the amount you add, and it can be paid out at renewal once the first mortgage comes up.
We look at both options with you, including a home equity loan where that fits better, and show the total cost of each before you decide. If the goal is to consolidate debts, the comparison usually comes down to the penalty on your first mortgage.
How Much Can You Borrow with a Second Mortgage in London?
Second mortgage approval in London comes down to equity. All mortgages registered on the property, including the new one, must stay within 75% of the appraised value. London has an active resale market, so the full 75% limit applies across the city.
Here is a worked example. On a London home appraised at $600,000, close to the LSTAR average sale price, with $380,000 still owing on the first mortgage, 75% of the appraised value sets a lending ceiling of $450,000. Subtracting the $380,000 already registered leaves up to $70,000 that could be advanced as a second mortgage. Loans start at $30,000, and a current appraisal confirms the value used in the calculation.
Second mortgages in London carry rates of 10.49% to 11.99% depending on the loan-to-value ratio, with lender and broker fees of 2% to 3% each, a $4,000 minimum lender fee, and legal costs of roughly $1,500 to $3,000. Terms are usually one year. The complete rate tables, criteria and location limits are published on our lending guidelines and pricing page.
London Information
Located in the heart of southwestern Ontario, London has a population of 422,324, according to the 2021 Census, an increase of 10.0% from 2016. As a regional hub for healthcare and education, London is home to Western University, Fanshawe College, and several hospitals. The city boasts charming streets and the Grand Theatre’s Shakespearean productions, one of its top attractions.
London Real Estate Market
Real estate in London, Ontario, remains active. According to the London and St. Thomas Association of REALTORS (LSTAR), 526 homes sold in the London and St. Thomas area in August 2026, in line with the past four summers, while the average sale price across the LSTAR region was $590,550 and the average within the City of London was $580,525. Inventory reached 6.3 months and the sales-to-new-listings ratio was 37.5%, which LSTAR describes as the early signs of a buyers’ market.
Client Success Stories
Returning Client
Woodstock, Ontario
A Returning Client Comes Back for More
A homeowner in Woodstock returned to Mortgage Broker Store after a great first experience. With a home appraised near $450,000 and existing first and second mortgages of about $32,000 each, our team tapped the available equity to arrange roughly $67,000 in new financing — with the second deal closing in under two weeks.
They felt supported throughout the process and appreciated the clear communication and helpful service from our team.
Mortgage Broker Store also arranges second mortgages in Toronto, Barrie, Cambridge and Guelph. For lending limits, rates and the full provincial guide, see our Second Mortgages in Ontario page.
Second Mortgage London FAQ
Answers to common questions about this Mortgage Broker Store page.
What are second mortgage rates in London, Ontario?
Second mortgages in London carry interest rates of 10.49% to 11.99%, set by the loan-to-value ratio. Lender and broker fees are 2% to 3% each (4% to 6% combined; the lender fee has a $4,000 minimum), plus an appraisal of about $600 plus HST and legal fees of roughly $1,500 to $3,000. Full tables are on our lending guidelines and pricing page.
How much can I borrow with a second mortgage in London?
All mortgages on the property combined, including the new second mortgage, must stay within 75% of the appraised value. Loans start at $30,000, so you need at least that much equity below the 75% line, and the payments must be affordable on a one-year term.
How fast can a second mortgage close in London?
Approvals are based on equity rather than lengthy credit checks, so a commitment often comes within days and most files fund within one to two weeks. The appraisal and legal work set the timeline. Urgent closings, such as stopping a power of sale, can be prioritized.
Can I get a second mortgage in London with bad credit?
Yes. Approval is based on the equity in your home and a clear exit plan, not your credit score. A past consumer proposal or bankruptcy does not disqualify you, and consolidating debts into the second mortgage is often what repairs the score for a bank refinance later.
Ready to explore your options for a second mortgage in London? Contact Mortgage Broker Store today to discover the best rates and tailored solutions.
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