The present invention generally relates to an apparatus and method for expanding an expandable tubular assembly in a borehole. In one aspect, a system for expanding a tubular having an anchor portion in a borehole is provided. The system includes a running tool configured to position the tubular in the borehole. The running tool including a first expander configured to activate the anchor portion by expanding the tubular to a first diameter. The system further includes a second expander configured to expand the tubular to a second larger diameter, wherein the second expander is movable between a retracted position and an expanded position. In another aspect, a method of expanding a tubular having an anchor portion in a borehole is provided.