Second & Third Mortgages in Vancouver BC 

2nd Mortgage - 3rd MortgageIn most cases, taking out a second & third mortgage is a fairly important decision. They’re usually made when homeowners need to make upgrades to their home or property. However, some people even take out a mortgage in the rare instance they need to buy a little time to pay their first mortgage, such as during unemployment or during financial troubles. Likewise, third mortgages are even rarer.Sometimes it’s better to seek out the money or help through a personal loan or another financial agreement, such as refinance. However, there are situations when a third mortgage makes sense.If you’re in a position where taking out a second or third mortgage might be a possible decision, the following information might help you whittle down your options and arrive at a final choice.

Reasons Second & Third Mortgages Makes Sense


If you’re facing a foreclosure on your home, taking out a second mortgage might make the most sense — especially if you have a fixed-rate first mortgage. Losing your home may bankrupt you, but it will definitely damage your credit. Taking out enough money on your home to pay off what you owe the bank may be enough to get you back into the black. However, in this scenario, a third mortgage almost never makes sense.

Unexpected or Unplanned Costs

Sometimes you need a loan to pay off unexpected medical costs. Maybe you want to help pad a child’s account before they go off to college. Perhaps a child is even considering buying a home of their own and they need the down payment.

In these situations, using your home as an asset to assist a family member isn’t always a bad idea. Banks see this opportunity as a solid funding option. If you’ve been especially good on maintaining your credit and making payments on time, you may even be able to get lower rates than you did on your first mortgage.

Second mortgages work better for these situations. However, a third mortgage isn’t out of the question either.

Home Repair/Improvement

When a bank has an opportunity to see the money they’re lending you go directly into the asset the money is affecting, they’re not usually ones to say no.

If you’re looking to make improvements to your home or even just repair some of the damages, that’s a win-win scenario for the bank. Even if you default in these situations, the bank could still sell the home with the improvements/repairs included. Basically, there’s still a chance they could make extra money on the deal without including the interest from the second or third mortgage.

Repairs and upgrades can also be mortgage under different term, sometimes with lower interest rates and borrowing terms. Banks can usually do these under better terms than they can with a refinance, too.

In these situations, third mortgages are not unheard of, even if they’re still rare. However, you’ll have your best chance of obtaining a third mortgage under these terms.


In rare occurrences, banks will even allow you to take out a second or third mortgage for the purpose of buying another property. This could mean buying a home or a cabin for renting out and making money or as a vacation spot.

The terms on these loans will be similar to the terms you’ll see when trying to obtain a mortgage to pay off medical expenses or help someone else buy a home. However, if you use the same bank to take out a mortgage on the potential property, the bank will be more likely to agree to loan you more money for a second and third mortgage.