Is it possible to mortgage assets many times to borrow money?

Is it possible to mortgage assets many times to borrow money?
Posted date: 18/02/2021

I mortgaged my house worth VND 2 billion to borrow 600 million VND from Mrs. Thu. We do not have an agreement on not to transfer, give, or mortgage the house to a third party. After that, I intended to mortgage the house to borrow VND 500 million from Mr. Long but Mrs. Thu. discovered and disagreed. Therefore, I would like to know the legal provisions of this case. I hope FDVN can advise me soon.

FDVN’s opinions:

Thank you for concerning FDVN’s legal services. Regarding your consulting requests, after studying the relevant legal documents, FDVN Law Firm would like to give you the following advice:

Pursuant to Clause 1,2 Article 296 of Civil Code 2015, a single item of property used as security for the performance of several obligations:

“1. A single item of property may be used as security for performance of several obligations if, at the time of the establishment of the security transaction, the value of such property is greater than the total aggregate value of the secured obligations, unless otherwise agreed or otherwise provided by law.

2. Where a single item of property is used as security for the performance of several obligations, the securing party must notify the later secured party that the security property is being used as security for the performance of other obligations. The provision of security on each occasion must be made in writing…”

Because you and Ms. Thu have no other agreement, you can use this house to secure both obligations in case the value of the house at that time is higher than the total value of guaranteed obligations. You are obliged to let Mr. Long know that your house is being used to secure the guarantee of the obligations under the property loan contract with Ms. Thu.

Above is FDVN Law Firm's opinion for your consulting requests based on studying the relevant legal provisions. Hopefully, FDVN's advice would be helpful to you.

Nguyen Thi Lan Anh - FDVN Law Firm


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