What is cross-collateralisation?
Cross-collateralisation is when multiple properties are pledged as security against multiple loans with the same lender — each property's equity supports every loan, which simplifies approval but constrains future flexibility.
Cross-collateralisation (often called 'cross-securitisation' or 'crossing') happens when two or more properties are used as combined security for two or more loans under one lender. The lender's mortgage covers all properties simultaneously, and the combined LVR across the property portfolio determines whether new lending is available.
It's common for investors who buy a second property using equity from their first. The lender ties all the loans and security together under one umbrella, which simplifies their internal credit assessment.
Most brokers and investment advisors recommend AGAINST cross-collateralisation where avoidable. The downsides: selling one property requires the lender's release approval (they may demand the sale proceeds reduce the other loans), refinancing one loan can trigger reassessment of all loans, and switching lenders requires un-crossing the whole portfolio. The cleaner alternative is 'standalone' loans where each property secures only its own loan.
cross securitisation · crossing · cross collateralisation
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General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.