I have a question about ELOC. Say I have 100k in equity and I access this through an ELOC secured against my property.
I can use this 100k as a deposit to purchase an investment property for say 500k. I also have an all in one account.
And I believe I then pay interest on the all in one and ELOC.
My confusion is around the additional 400k which is the cost to purchase the investment property (500k – 100k deposit)…should I not be paying interest on this aswell??? Or is this secured against the investment property or something??
Totally confused by this. Any clarification would be great