Chinnappan (CEO) 14 May 2024
I have availed a housing loan against my house from the bank by mortgaging my house and paying monthly EMI to the bank. Can I create a second mortgage against the same property for borrowing money from private source?. Does this require a letter from the banker allowing creation of 2nd mortgage against the same property.
T. Kalaiselvan, Advocate (Advocate) 14 May 2024
it is possible to get a home equity loan on a property that is already mortgaged. However, the total borrowed amount, including the existing loan and the home equity loan, must not exceed the market value of the property.
You could also switch to another mortgage lender and increase how much you borrow. But this is only suitable if you can save more than you'll have to pay out in application fees to the new lender and early repayment charges for leaving your existing lender.
X wishes to borrow another Rs. 5 lakhs for the maintenance of the property, he can opt for a second loan. So he can mortgage the same property with another bank to borrow the amount needed. The second bank therefore takes a second mortgage loan on its books.
However considering a 'Mortgage' from the point of view of a mortgagor, the mortgagor loses his right of redemption in case of a default in repayment by the borrower
Dr. J C Vashista (Advocate ) 14 May 2024
It depends upon value of mortgaged property and amount of loan alread availed.
Contact your (Or some other) banker with relevant records.
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