Can I Get Loan Against Property Which Is Already on Loan?

Understanding Home Equity Loans

A home equity loan, often known as a “loan against property“, allows you to borrow against the equity in your property. Equity is the difference between the value of your home and the amount you owe on your existing loan.

How Home Equity Loans Work

In a home equity loan, the lender provides a lump sum of money which is then repaid over a fixed period at a fixed interest rate. You can usually borrow up to 60-75% of the market value of your property minus the outstanding loan amount.

Requirements for a Home Equity Loan 

Eligibility for a home equity loan generally includes a good credit score (750 or above), steady income, a considerable amount of equity in your home, and the property should be free of any legal disputes.

Getting a Home Equity Loan on a Property That is Already Mortgaged

Yes, 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.

Steps to Get a Home Equity Loan on a Mortgaged Property

Compare Various Lenders

Begin by comparing interest rates, terms, and fees of different lenders to find the most favourable option.

Get Pre-Approval for the Loan

A pre-approval will give you an estimate of the loan amount and interest rate you’re eligible for.

Prepare Your Documentation

Lenders will typically ask for documents proving your income, assets, and liabilities. Ensure these are readily available.

Answer All Queries From the Lender

Prepare to answer queries about your financial situation and your plans for the loan proceeds. This helps establish your credibility.


1. Can I get a loan against a property which is already on loan? 

Yes, this is possible through a home equity loan or a loan against property. However, the combined loan amount should not exceed the market value of the property. 

2. What are the requirements for a home equity loan? 

Typically, a good credit score (750 or above), steady income, substantial equity in your home, and a legally clear property are required.

Key Takeaways

Obtaining a home equity loan on an already mortgaged property can be a viable method to secure funds for major expenditures. It’s crucial, however, to understand the loan terms, and associated risks, and to ensure you can comfortably repay the loan.

Start Your Loan Journey with Ruloans Today!

Considering a loan against your already mortgaged property? Ruloans is here to guide you. Our experts will help you find the best lender and secure optimal loan terms based on your specific needs. Start your loan journey with us today!

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