Borrow at the apartment? Can a mortgage be mortgaged? Yes you can borrow at the apartment. That is, leave the apartment as collateral for the loan.
You can take out a mortgage when you buy an apartment with the property as collateral for the loan and then take a loan again with the apartment as collateral. The loan goes the same way. You leave the property as collateral to the bank. Then the bank knows that if you do not pay the loan, they can always sell the apartment and get money back instead. As a result, the risk of lending money to you is reduced and therefore it is even cheaper to borrow money at a lower interest rate.
The more risk the bank takes, the more they must also pay. The apartment may need to be re-evaluated by a broker to see how much more you can mortgage the apartment. In Sweden, a maximum of 85 per cent of the value of the housing can be borrowed. The bank rarely has any opinion on what you spend the money on so you can borrow for a car, travel or renovation for example. But if you mortgage the housing, it is absolutely best to do so hopefully the housing will increase in value.
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All about borrowing money with the home as collateral
It is possible to borrow money with the housing as collateral for more than for the home and we write about it a lot. For many, borrowing with the home as collateral for buying a car or renovation also. That’s why we try to write guides about it so people can compare with that option as well.