Investment Property Loans › What is cross collateralisation and should I avoid it?

What is cross collateralisation and should I avoid it?

Cross collateralisation is when a lender uses more than one of your properties as security for your loans. It can give the lender broad control over your assets and make it harder to sell or refinance one property on its own.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

Many investors end up cross collateralised without realising, simply by letting one bank fund everything. It can limit your flexibility down the track, tying your properties together. Keeping loans standalone, where each property secures its own loan, usually gives you more control. It is worth checking how your loans are structured before you add the next one.

The key points

One loan secured by multiple properties.
Can give the lender broad control of your assets.
Makes selling or refinancing one property harder.
Standalone structures usually give more control.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.