High property values have given us a false sense of security with house prices going up $100,000’s in the last year or two. We think that its good to increase the mortgage loan, to take advantage of the extra equity that those price rises have caused.
Well it may be but if things get tight, or interest rates go up, you could find yourself in real trouble. So, unless you really need to have some extra money you should avoid borrowing if at all possible. If you must borrow, a secured loan is the best way for a competitive interest rate but it usually involves giving a charge over your assets.
If you have a good credit rating, many lenders will give you a competitive rate on a personal loan.
Whatever you decide to do, remember you have to pay it back in the end.