But in today’s rate environment, refinancing everything can actually increase your overall interest costs, even if it looks cleaner on paper.
Here’s the truth:
A blended-rate second mortgage is often the cheaper, smarter option.
And thousands of Ontario homeowners are saving money by doing exactly that with Lendworth.
🔍 The Myth: “I should refinance everything at one rate.”
Many borrowers think:
“My first mortgage is at 5%. If I refinance everything at 7%, that’s not too bad.”
But this thinking misses the most important part of mortgage math:
Your existing low-rate first mortgage should be protected.
Giving up a 5% first mortgage to replace it with today’s higher rates is rarely a good financial decision.
Instead, a small second mortgage at a higher rate creates a blended interest cost that is often much LOWER than refinancing the entire mortgage.
✅ Real Example: Blended Rates vs. Full Refinance
Scenario A — Keep Existing First + Add Second
$500,000 First Mortgage @ 5%
$200,000 Second Mortgage @ 10%
Your blended interest rate is NOT 10% — it’s weighted across the entire $700,000.
Blended Cost Calculation:
Portion at 5%: $500,000
Portion at 10%: $200,000
Blended Rate ≈ 6.43% overall
📉 Even though the second is at 10%, your total cost stays around 6.4%.
❌ Scenario B — Refinance the Whole Mortgage
$700,000 New First Mortgage @ 7%
Now, instead of paying 6.43% blended, you’re paying 7% on the entire amount—and you lost your better rate.
💸 Total cost is higher, even though the rate looks lower than the 10% second.
⭐ Why This Matters for Ontario Homeowners in 2025–2026
Interest rates may come down — but not fast enough to justify breaking low-rate first mortgages.
Most borrowers who refinance:
lose a low, legacy rate
take on higher payments
incur thousands in penalties
pay lender and legal fees on the entire amount
Meanwhile, Lendworth clients who use second mortgages enjoy:
✅ Lower overall blended rate
✅ No need to break the first mortgage
✅ Fast equity approvals (credit doesn’t matter)
✅ Lower fees and smaller loan amounts
✅ Easier future refinancing when rates fall
🧠 When a Second Mortgage Makes MORE Sense Than a Refinance
Choose a blended second mortgage when:
Your first mortgage rate is below today’s market rates
You need $50k–$500k quickly
You want to consolidate high-interest debt
You want to avoid a Power of Sale
You want lower monthly payments
You don’t want to restart a new 5-year term
With Lendworth, second mortgages are equity-based, meaning:
✔ Bad credit is okay
✔ Income verification is not required
✔ Approvals can happen in 24–48 hours
📞 Call Lendworth Today — Get the Best Mortgage Strategy for Your Situation
Every borrower’s mortgage math is different. At Lendworth, we don’t just give you a rate — we help you choose the cheapest total borrowing cost, whether that’s:
a second mortgage,
a blended equity solution,
a HELOC, or
a full refinance when it truly saves you money.
⚡ Call Lendworth now for your best mortgage options across Ontario.
Fast approvals. Equity-based lending. No bank stress.