Can I Mortgage My House to Buy another one?
April 24, 2025
When you want to move, a very common question is: can I mortgage my house to buy another one? The answer is yes, but there are several nuances and options to consider. Whether you already have the house completely paid off or you still have an active mortgage, you can explore ways to obtain financing and acquire a new property.
What Does it Mean to Mortgage a House to Buy another one?
Mortgaging a house to buy another one means using the current home as collateral to finance the purchase of a new property. This operation can take different forms depending on the financial situation of the owner:
- Establishing a new mortgage on a house already paid off.
- Re-mortgaging a paid-off home to obtain liquidity.
- Extending an existing mortgage to cover the new purchase.
- Transferring the mortgage to another home, in some specific cases.
It is essential to assess each case in detail and compare the conditions offered by banking entities.
Can I Mortgage a Home that is Already Completely Paid off?
Yes. If you have already paid off your home completely, you have the possibility of mortgaging a home that is already completely paid off to obtain financing. This type of operation is known as re-mortgaging a home, and it is quite common when you want to access a significant amount of money without selling the current apartment.
The advantages are clear: you don’t need to sell your property and you can get up to 60-70% of the appraisal value. Even so, you have to take into account the associated expenses (appraisal, notary, registration) and that you will still have a debt with the bank.
Other Options: Extend Mortgage or Use the Current Mortgage
If you still have an active mortgage, you can assess the option of extending the mortgage to buy another house. This extension can be of capital (to increase the amount borrowed) or of term (to extend the payment time), according to the conditions of the entity.
You can also study if you can use your current mortgage to buy another house, for example, through a subrogation or combining operations, although these options are more complex and depend on the bank’s acceptance.
When might I be Interested in Mortgaging My House?
This strategy can be useful in different scenarios:
- Evaluate the viability of the operation according to your profile.
- Assess your current home to know what financing margin you can obtain.
- Compare mortgage options and negotiate the best conditions.
- Find the apartment or house that fits your needs and budget.
If you are considering mortgaging a house to buy another one, do not hesitate to contact us. At Espígul we work to offer you clear and adapted solutions, so that you can take the step with confidence and security.
