Buying your own home on credit is a serious and responsible step that many people take once in their life. However, some eventually think about purchasing additional real estate and taking out another mortgage loan. In this article, we will talk about whether it is possible to take out 2 mortgages and what conditions the borrower must meet for this.
Second Mortgage: Myth, Opportunity or High Risk
The legislation of the Russian Federation and the general rules of bank lending do not limit the number of loans that can be issued to one person: and housing loans are no exception. Among bank clients, there are many who pay two, three mortgages and even more. Therefore, a second mortgage is definitely not a myth.
An additional housing loan is an excellent investment tool. Real estate has always been and remains a valuable and liquid asset, and after the loan is repaid, it will generate a stable income through renting out, or will exit mobile number database allow you to receive a large one-time sum when selling it. However, not everyone can take advantage of this opportunity: recently, banks have been making increasingly strict requirements for the level of solvency of clients, lending rates are rising, and preferential programs are being reduced.
Finally, taking out a second mortgage carries potential risk for borrowers, so it is important to objectively assess your financial capabilities so that loan debts do not become an unbearable financial burden.
When is a second mortgage needed?
There are a few main reasons why some people take out two mortgages:
The desire to improve living conditions . For example, if another child is born into the family and the apartment purchased earlier becomes cramped. For many families, the only way to expand their living space is to take out another mortgage.