Hi all
can I have your advice please. I have property with approx $40,000 in useable equity. I approached my bank to look at finance for an IP and I asked if we can release the equity for a loan that would not be secured against the first property. They said they could not do it and said the only way to use my equity was to secure my new IP against my current home. Am I correct in saying that this is an example of cross collateralisation?
If this is the case how can I use the equity in the first home to buy more property without having them all secured against that first house? Can it be possible to have a stand alone loan using my available equity?
Thanks guys
can I have your advice please. I have property with approx $40,000 in useable equity. I approached my bank to look at finance for an IP and I asked if we can release the equity for a loan that would not be secured against the first property. They said they could not do it and said the only way to use my equity was to secure my new IP against my current home. Am I correct in saying that this is an example of cross collateralisation?
If this is the case how can I use the equity in the first home to buy more property without having them all secured against that first house? Can it be possible to have a stand alone loan using my available equity?
Thanks guys