Hi, Hoping someone can shed some light on this as I’ve had no luck finding this information elsewhere. I purchased an investment property a few years ago under a family guarantee and at the time the rule was that your parents can use either a residential or investment property as collateral. This rule has since been changed to investment property only (to my knowledge). Now I’ve been given conflicting info from different people at the bank my loan is with - some say the equity is not usable until the family guarantee portion has been paid off as a residential property was used as collateral. Can anyone confirm? Is it really not possible to use the equity in a home if it was purchased under a family guarantee?
You are asking if additional borrowings can be made secured against the property. This will depend on the values but it is certainly possible. Seek credit advice
If you want to do a top up you will first need to uncross your parent's guarantee away first by simply ordering a valuation on your current property. If the LVR on your property alone is less than 80%, you may be able to release those equities out upto 80% of your property value.
