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23/02/2021 · A loan against property is a loan which uses your home as collateral. It’s usually used for things like home improvements, as an alternative to taking out a personal loan, or using your credit card. You can only take out a loan against your property if you own all or part of your home (known as the equity in your property.)30/04/2021 · When you first purchase a property and take out a new mortgage, you might have around an 80% loan-to-value ratio with a 20% down payment. Lenders consider lower loan-to-value ratios to be less risky. When you have paid off your home, your loan to value ratio is 0% because you have 100% equity ownership in the home and no outstanding loan ;· While in general conversation some may think this is interchangeable, it is not. With a non-purchase ‘second mortgage’, you are taking out a loan against the equity you have already accumulated. Meaning, you have paid down your existing first mo

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