Zondo answered
PropTrust’s mortgage dragon
mortgage distress
My broker says a private second mortgage will save my house. Should I do it?
Private seconds in distress typically cost 9–14% interest, plus 2–4% lender fee, plus 1–2% broker fee — that is 5–10% of the loan, upfront, before you save a dollar. They solve a deadline. They rarely solve the underlying problem if income has not recovered.
What your bank didn’t say
Your broker earns the 1–2% on the private second. Their incentive is to place it; your incentive is to ask whether 12 months of breathing room actually fixes anything. If the answer is "I just need time," ask first whether your existing lender will extend. They often will, at a fraction of the cost.
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PropTrust is a Canadian property data platform. We are not a lender, broker, real estate agent, landlord, or paid advisor. This is information about how the rules work — not advice on your specific situation. For that, talk to a licensed professional.