Can you have two mortgages?

Written by nicole rosen
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Can you ever have too many mortgages? Is there a limit to the number you can have? Here's what's involved in having more than one mortgage.

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The benefits of having more than one mortgage depend on your reasons for having them. One of the biggest benefits is being able to avoid PMI: Private Mortgage Insurance. Another benefit to having two mortgages is it will allow you to purchase two properties.


An 80/20 mortgage allows you to purchase a home without putting down 20 per cent and still avoid paying for mortgage insurance, which saves you money on a monthly basis. This is the biggest reason to have two mortgages on one property.


When taking out two mortgages there are many things to consider, the biggest being income. Can your income sustain two mortgages? If rental income is going to be used to help qualify for the second or third, then you will need to be able to show a two-year history of receiving that income.


A big misconception surrounding people who have more than one mortgage is that they took out a second mortgage to pay off debt or that they are living beyond their means. In this last housing bubble, 80/20 combo mortgages were popular as they allowed people to purchase houses without putting thousands of dollars down when purchasing a home.


There are three main types of mortgages: a first mortgage, a second mortgage, and a HELOC (home equity line of credit). The first two are fixed loans, which means they have specific beginning and ending dates. The HELOC is a revolving line of credit and as you pay down the balance, you can draw more money out in specific increments.

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