Buying a property with a home loan typically means using the property's value to secure the loan; a practice called “mortgaging” your home. But it's also possible to use the value of your property as collateral on another loan, provided you fulfil the eligibility criteria and have enough usable equity available.
What is collateral or security on a loan?
When a bank or similar financial institution lends you money, they're taking a risk that you may not pay them back. The higher a lender feels this risk is, the more the lender may charge in interest and fees on the loan.
