Possible to use equity in my (unusual) situation to purchase second home

Hi All,

I have a loan which is unusual that is NOT with a bank, so wondering is it still possible to use any equity I will have on the loan in the future towards another property?

– FIxed at 4.5% for the first three years, then goes to regular interest rate after that
– I cannot redraw whatsoever……
– If I have credit in the loan, I can stop making repayments until my credit runs out. (eg if repayments were $100 pw, but I were paying $200 per week for 8 weeks I would be $800 in credit so therefore if I choose to I do not have to make repayments for 8 weeks until my credit ran out)
– I cannot borrow under these circumstances to buy the second property

SO if I have some equity in this loan at some stage, and want to use it to help purchase another property is this possible. Do you need to actually withdraw the equity (remember I cannot touch the money AT ALL once its paid) to buy another house, or is it all theoretical and the money is not ever taken from the first mortgage as such but more guaranteed to the second property mortgager if I must sell the first place. I did a search of how equity works, I didnt quite understand the line of credit thing, however I think this wouldnt be an option for me as I cannot change details with the lender in my circumstance and cannot redraw.

Would love to hear your ideas.

Thanks guys
Joe