Can we apply for a mortgage loan with an active home loan?

Building a new home requires a massive capital investment. Not everyone is wealthy enough to pay for the incurring costs of building a home even when they have already applied for a home loan. You might think of applying for a loan against property to cope with the costs in such a time. But is it possible to secure a mortgage loan when you have an active home loan? This article will help you understand your eligibility in a better way.

The first thing to note is that you can not avail of a mortgage loan on a pledged property for a home loan. So, if you have applied for a home loan on a property, then you need to submit some other property as collateral for a loan against property. Be clear that while submitting the mortgage loan application, you are eligible for the loan. You can improve your eligibility by following some tips listed below.

Tips to improve eligibility for a mortgage loan when you have a home loan

There are many ways of improving eligibility, and many people have successfully secured good deals by taking care of a few things before applying for a mortgage loan. You can go through with PNB housing finance mortgage India for the best deal. If you follow some of the listed tips, you can significantly improve your eligibility, and you will have a better chance of getting approval.

  1. Improve your CIBIL score:

Lenders prefer applicants who have a good credit history and a decent CIBIL score. It showcases the creditworthiness of the applicant. So, if you have an existing home loan, then make timely EMI payments so that your credit score improves. It will help you prove that you have a decent cash flow and can bear the mortgage loan liabilities.

  1. Opt for a longer tenure:

Your debt to income ratio is one of the most significant factors considered by any lender before approving the application for a loan. As you have the liability to repay the home loan, make sure to choose a longer tenure for repayment of a mortgage loan. It will help you reduce the EMIs and make it much easier for you to make timely repayments. Having low monthly debt will improve your debt to income ratio and improve the chances of getting approval.

  1. Additional income sources:

Having multiple streams of income help escalate your cash inflows. You can show any extra income you have to increase your eligibility for the mortgage loan. You can get additional income by renting your second house. It will help you secure a better chance of getting approved for the loan. Having a higher income can help ensure a lower mortgage loan interest rate, further bringing down your liabilities.

  1. Pay off existing debts:

The more debt you have, the lesser are your chances of getting approved for a mortgage loan. Keep your spendings on your credit cards at 20-30% of the limit. Use your savings (other than the emergency funds) to pay off part of your existing debt to bring down your liabilities. You are very likely to get approved if you owe less amount to your lenders.

  1. Get a guarantor or joint mortgage:

You can boost your borrowing power by having a guarantor with an ideal financial situation. The banks will check your guarantor’s credibility too, and they could be held liable if you default on repayments. It will help you with your mortgage loan application. Further, you can have a joint application to boost your borrowing power.


At times, we require additional funds for the construction of our home, and the home loan is not enough to fulfill your requirements. You can not secure a mortgage loan on the property that is already pledged for a home loan, but if you have other properties, you can apply for a loan against property by submitting them as collateral. PNB housing finance mortgage India allows you to apply for the loan through their website, and complete the necessary formalities within a few minutes.

You can check your mortgage loan eligibility on your lender’s website and follow the article’s tips to improve your eligibility chances. Ensure your lender’s mortgage loan interest rate on their website to get a better idea about your overall liabilities. It will help you manage your finances in a better way.

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