Second Mortgage explained
When you take out a second mortgage, a new charge is registered on your property's title in addition to your primary mortgage. The lender in first position has the first claim on sale proceeds if the property is sold to cover unpaid debt; the second-mortgage lender is paid only after the first is fully satisfied. That added risk is why second mortgages typically come with higher rates and sometimes shorter terms than first mortgages.
Second mortgages can be a lump-sum loan or a revolving product such as a home equity line of credit. Borrowers use them to access equity for renovations, debt consolidation, a down payment on another property, or to cover a temporary cash need without disturbing a favourable rate on the first mortgage.