Document background
A Hard Money Second Trust Deed is utilized in Canadian real estate financing when a borrower requires additional funding beyond their first mortgage, typically in situations where conventional lending isn't suitable or available. This document is essential for private lenders providing short-term, higher-interest loans secured by real estate that already has a primary mortgage. The agreement must comply with provincial property laws and federal interest rate regulations while protecting the lender's security interest in a subordinate position. It's commonly used in time-sensitive situations such as business opportunities, construction projects, or debt consolidation, where the borrower has sufficient equity in the property but may not qualify for traditional financing. The document includes comprehensive details about the security interest, payment terms, borrower obligations, and remedies available to the lender, while acknowledging and working within the constraints of being in second position to the first trust deed.
