Line of Credit Loans
Line of Credit Loans are interest only variable rate loans that allow you to borrow against the equity in a home with the added flexibility of a transaction account built into the loan. It's just like a really big credit card which is secured against your home and charged at home loan interest rates.
A line of credit is the best option if you are looking for a mortgage reduction loan. Some of the reasons for this are:
- Line of Credit gives you easy access to funds
- With a Line of Credit the purpose of a withdrawal is unquestioned.
- Line of Credit gives you Eftpos & cheque book convenience
- With a Line of Credit there is no early payment penalty
- There is no set term to a Line of Credit.
- A Line of Credit is transferable - If you decide to buy a new property the Line of Credit can be moved over to the new home.
- Line of Credit gives you extra Investment Opportunities
- Line of Credit gives you Tax Savings
Frequently asked questions from our clients regarding Line of Credit loans:
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Question: |
Who can access Line of Credit facilities? |
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Answer: |
Line of Credit facilities can be used for Owner occupied, investment or business purposes. |
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Question: |
What kind of repayment options exist for Line of Credit facilities? |
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Answer: |
Interest only for the first 15 years (called the Revolving Credit Period). Principal and interest for the remainder of the loan term. |
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Question: |
Can you split into various accounts a Line of Credit loan? |
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Answer: |
You can have up to 4 separate loan accounts under one facility. |
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Question: |
What sort of security is required for a Line of Credit? |
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Answer: |
Usually 1st registered mortgage over a residential property is required as security. |