How do you avoid cross-collateralisation loans?

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

By keeping their properties stand alone and not cross collateralised a borrower can sell any of their properties and can pay out only the loan secured by that property. This is without any dictation from the lender regarding overall debt and other properties. There is no need for valuations or reassessment of your financial position with the lender. Most importantly, the borrower dictates what happens to net sale proceeds not the lender.