Cross collateral

The five main types of collateral are consumer goods, equipment, farm products, inventory, and property on paper. All can be used as collateral when applying for loans, provided there is a recognisable value associated with the item.

To remove cross collateralization, the best option is to contact the lender and attempt to negotiate your loan structure. You may be able to secure the remaining debt with other collateral.

Insist on stand-alone loans and securities whenever possible. Take out separate loans for each new home, using a line of credit or an offset account to cover the deposit and charges.