Moxin Reza

Most investors have heard of cross-collateralisation.

Very few understand what it actually means until it's too late.

When a bank cross-collateralises your loans, it takes multiple properties as combined security rather than treating each one separately.

On the surface it can help reduce your loan-to-value ratio and avoid lenders mortgage insurance.

But here's what can go wrong.

The bank may hold four hundred or five hundred thousand dollars worth of your properties as security for a loan of only one hundred and fifty thousand dollars.

If you want to sell one of those properties, or restructure, or refinance the bank has significant control over whether that can happen smoothly.

Know the difference before your broker makes the choice for
you.

Book a free strategy call to review your current loan structure, link in bio.

🎙️Watch the Full episode on the Australian Property Academy YouTube channel to know the basics..