“Additional borrowing” refers to a mortgagor borrows more on his/her existing mortgage from the current mortgage lender (banks or lending companies). There is only one mortgage lender involved in additional borrowing.
“Second mortgage” is a second loan. It refers to a loan that a mortgagor borrows against his/her property as collateral from other mortgage lenders. If the mortgagor is unable to pay off the loan, and the property is put for auction, the first mortgage lender can have the repayments prior to the second mortgage lender. Since the second mortgage lender takes a higher risk, second mortgage rates are higher than the first loan’s rate. A lot of banks in Hong Kong do not provide second mortgages. Second mortgage plans in Hong Kong are majorly provided by financial companies and property developers.