Hi
A friend of mine is looking at purchasing farm land. He has a deposit of 60%. He also owns another property outright with $550k. He needs the extra 40% from a bank. All banks seems to want to use his existing property as security!
I am a reasonably inexperienced with finance, and was wondering why the banks want to do this (considering he has such a high deposit?).
I have three IP's of my own, and cannot explain it
Any help is much appreciated!
Thanks
A friend of mine is looking at purchasing farm land. He has a deposit of 60%. He also owns another property outright with $550k. He needs the extra 40% from a bank. All banks seems to want to use his existing property as security!
I am a reasonably inexperienced with finance, and was wondering why the banks want to do this (considering he has such a high deposit?).
I have three IP's of my own, and cannot explain it
Any help is much appreciated!
Thanks