Second Position Financing
Commercial Second Mortgages
Unlock the equity trapped in your commercial property without refinancing your first mortgage. Flexible terms from 1 to 5 years with interest-only payment options available.
At a Glance
Key Features
- Does not disturb your existing first mortgage
- Equity-based approvals with flexible qualification
- Open and partially open prepayment terms available
- Suitable for both owner-occupied and investment properties
- Available on most commercial property types
- Fast approval and funding timelines
Common Uses
What Borrowers Use Second Mortgages For
Bridge Financing
Cover short-term capital needs while waiting for a property sale, refinance approval, or other anticipated liquidity event.
Debt Consolidation
Combine multiple high-interest obligations into a single, manageable payment secured against your commercial property.
Working Capital
Inject cash into your business operations without selling assets or taking on unsecured debt at higher rates.
Business Expansion
Fund equipment purchases, new locations, or operational growth using the equity already built into your property.
Construction & Renovation
Finance property improvements or additions that will increase the value of your asset and strengthen your overall position.
Common Questions
Commercial Second Mortgage FAQs
No. A commercial second mortgage sits behind your first mortgage and does not disturb the existing terms, rate, or payment schedule. Your first mortgage remains unchanged. The second mortgage lender accepts a subordinate lien position on the property.
Combined loan-to-value ratios (first plus second mortgage together) typically range up to 75% of the property's appraised value. In some cases with strong assets in prime locations, combined LTV may extend slightly higher. The available amount depends on how much equity exists above your current first mortgage.
Most commercial second mortgages can be arranged and funded within 7 to 14 business days. Straightforward deals on well-documented properties in major centres may close faster. The timeline depends on obtaining a current appraisal and clearing any outstanding title requirements.
Many private second mortgage lenders offer open or partially open prepayment terms, meaning you can pay down or pay off the balance ahead of schedule with minimal or no penalty. Specific prepayment privileges vary by lender and will be outlined clearly in the commitment letter before you proceed.
Access Your Property's Equity
Share your property details and current mortgage information. We'll determine how much equity is available and present your second mortgage options.