Is It Easier to Qualify for a Second Home?
Buying the Second & Subsequent Properties Becomes Easier.
If you are an existing homeowner who is exploring the purchase of a second property, you may want to know if it is easier to qualify for a second home. Because you are an existing borrower, qualifying for a second home with your existing home loan provider can be easier than qualifying for your first home.
Qualifying for a second home with your current provider can be easier than qualifying for the first if you have maintained or improved your financial situation and are an existing customer. Your provider will have your previous loan application and financial documents on file, making the application process for a second home loan easier for both you and your provider.
When you apply for a second home loan with your existing home loan provider, they will thoroughly review your finances and ensure that you are keeping up with the required monthly mortgage repayments for your first home loan. They will also ensure that taking out a mortgage for a second property does not put too much strain on your financial capabilities. If you intend to use the second property for investment purposes, your provider will also consider its intended use to determine your eligibility for a second mortgage.
As an existing homeowner, you have the potential of using the equity you have accrued by making the required mortgage repayments as security or collateral for your next home purchase. Equity is the difference between the amount you currently owe on your existing mortgage and the value of your existing property.