Can You Have Two Mortgages at the Same Time?
In Australia, homeowners can hold more than one mortgage if they own multiple properties. No law bars homeowners from holding two mortgages if they own two properties. In this case, the Australian government allows lenders to make their choices. Since lenders carry the risk on the mortgages they approve, they thoroughly evaluate the financial circumstances of each applicant.
When you purchase a second home, you must finance the property. As a homeowner, more financial doors open to you. Those who keep up with their monthly repayments accrue home equity. After five years, it becomes meaningful enough to leverage as collateral.
Some homeowners can leverage the property’s equity to cover the deposit on a second home. Then, the homeowner finances the remaining 80% with a new mortgage. It’s worth clarifying that two mortgages for two separate properties are different from taking out a second mortgage on the primary residence.
Nonetheless, Mortgage House works with an array of homebuyers including investors. Homeowners have several reasons for purchasing a second home. Among them is the intent to give it to their children. Our loan specialists can provide competitive solutions.
Two Mortgages at the Same Time Conclusion
It’s possible to hold two mortgages for two properties at the same time. No Australian law bars it from the Australian housing market. Lenders do evaluate the applicant’s financial circumstances and base their decision on that information. Mortgage House loan specialists have several tools at their disposal. Contact our team today.