You’re paying off your mortgage, but suddenly you realise you could use some extra money. You didn’t have enough money to finish the building. What now? Try applying for a mortgage increase.
How to increase the mortgage?
You can apply for a mortgage increase if the collateral is high enough, the bank finds you to be a creditworthy client and you have been paying the loan properly and on time. Instead of paying two loans, you will then only have to repay one. And it doesn’t matter if you didn’t use the money to finish the building, the garage, the pool, or even just to improve the garden.
Please note that the conditions vary from bank to bank and each application is considered individually.
What are the options for increasing the mortgage?
- An increase to an existing mortgage loan that you are already paying off. Both at the time of fixing the mortgage and during the mortgage. Expect to go through the approval process again, where the bank will check your creditworthiness and the value of the mortgaged property.
- Refinancing your mortgage with another bank and increasing it. You can then use the new loan to pay off your existing mortgage and use the extra funds for renovation, building completion, swimming pool, etc.
