Private second Mortgages, third Mortgages, and the CannectFlex difference

Traditional private second mortgages and third mortgages typically offer you access to money without refinancing your first mortgage. These mortgages are protected by your collateral, such as a home or a car. The lender can withhold this collateral up until you have paid your loan in full, including paying all interest and fees. A second mortgage or third mortgage is lent out based on the value of your home and the current amount you owe on your existing mortgage.

Private second and third mortgages offer varying penalties, depending on the lending provider and terms of the loan. Terms are typically quite inflexible, despite the loan being secured against your collateral.

CannectFlex loans differ by promoting long-term financial health through lower interest rates and flexible terms that allow you to make the most effective borrowing decisions. CannectFlex loans are designed to give you the flexibility to move the money you borrow to a lower interest rate mortgage, saving thousands of dollars in interest, while avoiding steep mortgage refinancing penalties.

Borrowing options for homeowners

CannectFlex loan

A fast, flexible-term home equity loan that sets you up to save when it’s time to renew your mortgage.

Loan amount

$25k – $1 million

Typical interest

5.49 – 9.99%

Typical fees

Moderate

Terms

Flexible

Time to close

As fast as 24 hours

Credit/income requirements

Flexible

Documentation

Minimal

Documentation

Substantial

Competitor private 2nd mortgages and 3rd mortgages

A home equity loan at a higher interest rate than your current mortgage, from competitors who don’t have your long-term savings in mind.

Loan amount

$25k to $1 million

Typical interest

7 – 11%

Typical fees

High

Terms

Strict

Time to close

A few days or longer

Credit/income requirements

Moderate

Documentation

Moderate

Documentation

Moderate

How Henry and Suzanne saved $10,000 with CannectFlex

Henry and Suzanne needed $100,000 to cover the renovation costs on their home. They live in a $950,000 home and have a first mortgage with a major Canadian bank for $500,000.

Their bank told them there was a $35,000 penalty to break their mortgage in order to borrow an additional $100,000. With 2 years left on their mortgage, they looked to a private second mortgage as a solution.

They considered a $100,000 second mortgage at a 12% interest rate and 1 year term. Although they would save a little by avoiding the mortgage penalty, they would still end up paying $30,000 in interest and annual renewal fees over the next 5 years while they worked to pay down their second mortgage.

Meanwhile, borrowing from Cannect at 8%—with the flexibility to refinance their first mortgage when their 2 year mortgage term was up—helped Henry and Suzanne save over $10,000 in fees and interest compared to a second mortgage.

Avoid overpaying on interest and mortgage penalties with Cannect

or call us at 416-766-9000

Not convinced yet? Shop around and see for yourself.

You could take our word for it or take a look around and compare. Private second and third mortgages are offered by many companies and major Canadian banks. See how they compare, then come back to apply for a CannectFlex loan.

Capital Direct

360 Lending

RBC home equity loan

Alpine Credit

Matrix Mortgage

Scotiabank home equity loan

Credit Butler

Alpine Credit

TD home equity loan

Nu-Borrow

BMO home equity loan

CIBC home equity loan

Gain long term financial flexibility with Cannect

As the Canadian real estate and lending market becomes more complicated, Cannect simplifies how you can use the equity in your home to borrow money at the best possible rates.

Regardless of whether you have an existing mortgage (or two, or three) on your home—regardless of what your bank may have told you—Cannect will find the most effective way for you to borrow money.

Our goal is to provide you the best short-term loan solution for long-term value, so you can work towards the lowest possible interest-rate mortgage, without added fees or penalties and costly long-term debt.

Private second Mortgages, third Mortgages, and the CannectFlex difference

Private second and third mortgages offer varying penalties, depending on the lending provider and terms of the loan. Terms are typically quite inflexible, despite the loan being secured against your collateral.

Borrowing options for homeowners

CannectFlex loan

A fast, flexible-term home equity loan that sets you up to save when it’s time to renew your mortgage.

Loan amount

Typical interest

Typical fees

Terms

Time to close

Credit/income requirements

Documentation

Documentation

Competitor private 2nd mortgages and 3rd mortgages

A home equity loan at a higher interest rate than your current mortgage, from competitors who don’t have your long-term savings in mind.

Loan amount

Typical interest

Typical fees

Terms

Time to close

Credit/income requirements

Documentation

Documentation

How Henry and Suzanne saved $10,000 with CannectFlex

Henry and Suzanne needed $100,000 to cover the renovation costs on their home. They live in a $950,000 home and have a first mortgage with a major Canadian bank for $500,000.

Their bank told them there was a $35,000 penalty to break their mortgage in order to borrow an additional $100,000. With 2 years left on their mortgage, they looked to a private second mortgage as a solution.

Meanwhile, borrowing from Cannect at 8%—with the flexibility to refinance their first mortgage when their 2 year mortgage term was up—helped Henry and Suzanne save over $10,000 in fees and interest compared to a second mortgage.

Avoid overpaying on interest and mortgage penalties with Cannect

or call us at 416-766-9000

Not convinced yet? Shop around and see for yourself.

You could take our word for it or take a look around and compare. Private second and third mortgages are offered by many companies and major Canadian banks. See how they compare, then come back to apply for a CannectFlex loan.

Capital Direct

360 Lending

RBC home equity loan

Alpine Credit

Matrix Mortgage

Scotiabank home equity loan

Credit Butler

Alpine Credit

TD home equity loan

Nu-Borrow

BMO home equity loan

CIBC home equity loan

Gain long term financial flexibility with Cannect

As the Canadian real estate and lending market becomes more complicated, Cannect simplifies how you can use the equity in your home to borrow money at the best possible rates.

Regardless of whether you have an existing mortgage (or two, or three) on your home—regardless of what your bank may have told you—Cannect will find the most effective way for you to borrow money.

Our goal is to provide you the best short-term loan solution for long-term value, so you can work towards the lowest possible interest-rate mortgage, without added fees or penalties and costly long-term debt.

or call us at 416-766-9000

Don’t need a quote today?

Sign up for your personalized property value report so you’ll know your options when it’s time to borrow or renegotiate your mortgage.

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