An Assured Home Loans Line of Credit, also known as an Equity Line or Revolving line of credit, allows you to only pay interest on the money you actually utilise. These products allow you to utilise the equity in your property into a ready source of funds up to an agreed limit. You can use these funds for any personal purpose and like a credit card, any principal repaid is available to redraw. Access to funds is usually by writing a cheque or using a debit card. There are no set principal requirements so as long as you meet interest, fees and charges on a monthly basis, you can repay as much or as little as you like.
This type of home loan is especially attractive to investors who need ready access to funds. It is also advantageous to high income earners who wish to reduce the debt on their home at a much quicker rate. Line of Credit loans usually attract a slightly higher rate of interest than a traditional housing loan.
If you’d like to talk to one of our experienced home loan consultants to assess what your finance options are.