kincella, fraud? wow!, you're taking a big leap there. I guess you would be 100% honest in your tax returns also?
People draw down equity in their homes for many reasons, an expensive holiday, a flash boat, whatever and the banks are only too happy to see the home loan expand as long as it is within their lending parameters. Lot less hassle for the bank guys on the paperwork front. As I said this really is only suitable for smaller loans, if you want $500,000 then you go the long route of applying for a business loan.
That method was actually suggested to me by my friendly bank manager :-)
