15 Mar 2023

Can You Borrow More Than You House on your Mortgage?

borrow with a 10% deposit

If you are an existing homeowner who is interested in obtaining a second mortgage, you want to learn if you can borrow more than your house on your mortgage. If you are interested in borrowing through the equity that has been accrued on your existing home, most home loan providers will allow you to borrow up to 80 or 85% of your existing home’s appraised value. 

Can You Do This?

As mentioned before, using equity, you have the potential of borrowing up to 80 or 85% of your existing home’s appraised value. Equity refers to the difference between the current amount you still owe on your first mortgage and the overall value of the property in question. For instance, if you still owe $100,000 on your first mortgage and your property has a value of $450,000, you will have $350,000 in equity. 

Because you are an existing homeowner, it can be easier for you to obtain a second mortgage due to already having received a stamp of approval from your existing home loan provider. Ensuring your credit score is kept above 640, keeping up with mortgage repayments, and working on improving your financial position can further increase your chances of receiving approval for a second mortgage. 

If you are interested in learning more about obtaining a second mortgage, reach out to the team of Mortgage House professionals for further information about our loan offerings and specialized assistance throughout the application process.

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