.... don;t think is illegal, as long as you met the requirements of:
- first property LTV=80% max
- 2nd property LTV=60% max
but, if you take equity loan, and charge the interest incurred to your property income,... that's illegal... unless you use the equity loan to enhance your property...
... and got what big issue meh??.. the most you get around with
- refinance your property with another bank to LTV=80%
- or, sell and buy back a similar unit...
and,... if wanna make it illegal hor, then need to shoot down all the reits first... haha....
(note: hdb cannot take equity loan...)