With All of the loans that we've got, we've had to sign a personal guarantee , so unless you have you're PPOR in a trust ( and as a result should be paying FBT to live there ) they're going to get it anyway , if you stuff up big time.
All of our equity was in our PPOR , so if we wanted to buy IP's we needed to access that equity. We're probably at the point where we could refinance our IP's so we could pay back our LOC.... but we won't . We're off to buy more .
Avoiding cross collateralisation limits the ability of the banks to do nasty things , as does having your loans with different banks.
The only time I'm aware that Cross collateralisation makes sense , is if you have cheapies that have gone up in value , and instead of getting a LOC to with draw a relatively small amount to fund another purchase , you could make a case for cross collateralising your current cheapie with another similar IP.
see change