Line of Credit Home Loans
Today’s home loans let you do more than simply buy a home. Consider a line of credit loan for example. Also known as a revolving line of credit, these loans have become popular due to their flexibility and features.
A line of credit home loan is a credit facility secured with a first mortgage on a residential property. 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.
This type of loan can be used to purchase most types of property, from the family home to an investment property. As long as you make the minimum monthly repayments, you can use the line of credit to carry out renovations, invest in shares or pay the bills.
At a glance
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easy access to funds, with most line of credit facilities offering cheque books, plastic cards, Internet and phone banking and a range of transactions
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withdraw up to your credit limit without having to gain pre-approval
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credit limit amounts are usually higher than credit cards
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interest rates are generally lower than credit cards
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interest on the credit facility can be minimised by directing all your income into your home loan account.
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consolidate your debts by transferring other debts such as personal and car loans into your mortgage
Risks
While these loans give borrowers considerable freedom, they are not for everyone.
Like any credit card account, line of credit loans require financial discipline and good budgeting skills to stay within your financial limits.
However if you are careful with your money and want the flexibility a line of credit offers, this type of loan may suit you.
Intercorp Financial Strategies is one of Australia’s most innovative mortgage brokers, the statement “A unique personal financial experience” reflects our clients experience when dealing with our company. We have developed a streamlined process for home loan and finance applications that will save you money and time on your refinance or purchase home loan needs. We will look at your entire financial portfolio, and can also assist with your insurance, financial planning and accounting needs if required – but first and foremost we are experts at getting your home loan approved for you.
Intercorp Financial Strategies mortgage brokers have access to sophisticated software through their association with FAST which will assist you in selecting the most appropriate home loan. We have access to over 30 lenders and 300 products so why waste time researching on the internet when you could get in touch with us and allow us to do the leg work for you.