Under the Torrens system the registered proprietor retains the ownership of the land and can create second and subsequent mortgages over the land. The rights of the second or subsequent mortgagee are subject to those of the first or previous mortgagee. When buying property, sometimes additional money is required to bridge the deposit gap and this can be achieved by way of a second mortgage.

The first lender (first mortgagee) has to agree to the borrowing of additional money. Usually the first and second mortgage repayments should not exceed 30% of the applicant's gross income. It is higher for subsequent mortgages because any remedy for default is as the discretion of the first mortgagee. Common sources of additional finance are:
real estate finance.