Financing using LOC or equity

[nakal]

I have two IPs with the same bank. One IP is IO and the other is LOC. I would like to use the equity to purchase another IP. If I use a different bank for finance, what would they use as security if I use the equity from the IP. Using the extra funds from the LOC would be easy as I would just draw the money, but i can't work out what I would use as security if I go to another bank to get finance using the equity.

 

[Aceyducey]

Nakal,

Assuming you have or get a LOC (Line of Credit) over your IP with free equity they'll use the new property as security.

It shouldn't matter to them that you are drawing the deposit from a LOC on another property, that's your concern.

Cheers,

Aceyducey