A
Anonymous
Guest
From: Anonymous
Hi all,
I'm a newbie and just starting to think of buying my first IP by using the equity build up in my home. I know that to avoid cross-collateralisation, I could take out a line of credit using the equity in my home to back it. This could then pay for the deposit on an IP, and I take out a separate loan for the rest of the cost of the IP.
But you know those equity home loans offered by banks, like the Portfolio Loan from St George? They set up separate accounts for investment purposes and your home, but it's all backed by the equity in your home. Would that be cross-collateralisation if I used such a loan to pay for the deposit on an IP?
I hope this makes sense.
Jim
Hi all,
I'm a newbie and just starting to think of buying my first IP by using the equity build up in my home. I know that to avoid cross-collateralisation, I could take out a line of credit using the equity in my home to back it. This could then pay for the deposit on an IP, and I take out a separate loan for the rest of the cost of the IP.
But you know those equity home loans offered by banks, like the Portfolio Loan from St George? They set up separate accounts for investment purposes and your home, but it's all backed by the equity in your home. Would that be cross-collateralisation if I used such a loan to pay for the deposit on an IP?
I hope this makes sense.
Jim
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