A Line of Credit (often known as an Equity Loan) is a limit on your account that can be drawn up and down in line with your requirements. You generally have electronic access to the funds and it works similarly to an overdraft but it is required to be secured by a residential property.
A Line of Credit is convenient, you have easy access to the funds and you only pay interest on the amount you have used. You do not have to explain to the Bank what you are using the money for. Interest is generally calculated daily and charged at the end of each month.
Line of Credit loans are generally charged at a slightly higher interest rate than home loans and may also incur an additional annual fee. The limit generally remains in place (as long as there has not been any changes to your financial situation or property valuation) and you can pay lump sums or regular payments onto the loan as you choose. At any time you can redraw to the limit, so you may not actually end up reducing your loan over time.
Upon reviewing your personal circumstances, we can assist you determine if this product would be suitable for your needs.