24 Apr 2022

Cross Collateralisation: What Is It for Mortgages?

Cross Collateralisation and Mortgages

Sometimes consolidation makes sense in several facets. For example, if you purchase in bulk, you receive more favourable prices. If you remain loyal to a retailer or service provider, they reward your loyalty with favourable prices too. The Australian Taxation Office has found that almost 10% of the population considers themselves property investors. Thus, they own more than one property. 

One financing strategy that property investors can use is cross collateralisation. For example, Mortgage House is a non-bank lender that finances property purchases for homebuyers and investors. Once you obtain more than one loan product from us, you receive access to all of them including our Mortgage House business loan. In addition, you become eligible for our niche solutions such as tailored loans, competitive rates, and faster approvals.

Cross collateralisation takes place when one lender finances more than one property for the same client. You can use the equity in one property to finance the purchase of another. This ties the two properties together. When building a portfolio, it makes sense to use this approach. Ideally, it gives the investor and property owner enough financial runway to take advantage of great deals on the market. 

Mortgage House has brought innovation to the lending market since 1986. We continue innovating and financing purchases for investors and homebuyers who have stellar financial credentials or need an alternative solution to the conventional mortgage.

Cross Collateralisation and Mortgages Conclusion

Those interested in cross collateralisation can contact Mortgage House. Our loan specialists will discuss your financial goals with you. Speak with our team today.

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