In a world of family loans, could the same property be used for secondary mortgages without paying off existing mortgages? This is a problem that many people are often confused about in the lending process. Each lending institution has its own rules of interaction and risk assessment mechanisms. New loans from lending institutions are possible only if the borrower and his house are in full compliance with these rules。

What's the procedure after the mortgage is repaid

In fact, if your house still has a certain value after deducting the balance of the current mortgage, you may be eligible to apply for a second mortgage on your property. However, this process may be complex and subject to a variety of conditions, including but not limited to age, income, credit status and the real value of the house。

Many lending institutions are cautious about secondary mortgages, as this may increase the risk of debt disputes, especially when prices in the real estate market are volatile. As a result, applications for secondary mortgages on properties that have not been repaid for existing mortgages may be treated with caution and even directly rejected by the lending institution。

For those who have successfully applied for second mortgages, they need to keep track of timely repayments in order to maintain a good credit position. In the event of a delay, in addition to affecting credit ratings, additional interest rates would be required and, in cases of excessive delays, mortgaged property might be recovered by the lending institution。

Moreover, for those who have repaid their mortgages, they are required to carry out a series of loan settlement, mortgage relief, refund and deposit refunds to ensure that they truly have full ownership of the property。