A secured loan is a way to unlock extra funds by using something valuable you own, usually your home, as security. Offering this kind of guarantee could enable you to borrow a larger amount, often over a longer term, than a standard unsecured loan.

As there’s less risk for the lender, you might also get a better interest rate than you can with an unsecured loan. But here’s the flip side: if you fall behind on repayments, the lender can make you sell your home or other relevant asset to repay them. So, while secured loans can be a good option for big projects like home improvements or consolidating debts, they do come with serious responsibility.

Planned carefully, a secured loan could be exactly what you need to tick off your financial goals. Just make sure you’ve budgeted properly and feel confident about keeping up with the monthly payments.