Canadalend

Amy B. Maloney03 Feb, 2023Finance

A second type of subordinate mortgage is one taken out while the primary mortgage is still in effect. In the event of default, the initial mortgage is paid off in full with all proceeds from the sale of the property. The interest rate charged for a second mortgage is usually higher and the amount borrowed is less than a first mortgage because it is repaid only after the first mortgage is paid off.