A second mortgage is just like your first mortgage. It is secured against your home or condo. The second mortgage is registered behind the first mortgage. First mortgage would have priority over second mortgage.

The amount you can borrow secured by a second mortgage depends on how much your property has appreciated over the years or how much equity you have. A typical second mortgage loan would go up to 80% LTV(loan to value).

There are some second mortgages, where you’d only pay the interest on the loan amount helping you better manage your monthly budget.

There are also private second mortgages available for home owners with less than ideal credit or income situations. A private second mortgage should only be considered as a temporary solution as the fees and interest rates could be higher than a conventional bank mortgage, and while you are either waiting sell your property or hoping your financial and credit situation to get better.