LINE OF CREDIT

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 home loan.

Also known as a revolving line of credit, these loans have become popular due to their flexibility and features.   Similar to a credit card, they allow you to withdraw funds up to a set limit at any time.  Repayments can be made in full or on a monthly basis, unlike credit cards the interest rates are lower.

This type of facility can be used to purchase most types of property, from family home to an investment property.  As long as the minimum monthly repayments are met, you can use the line of credit to carry out renovations, invest in shares or pay bills.