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 loan. It's just like a really big credit card which is secured against your home and charged at home loan interest rates .
Frequently asked questions from our clients regarding Line of Credit loans:
Question: |
What sort of interest rate should I be paying for a Line of Credit? |
Answer: |
Interest rates for Line of Credit facilities are around standard variable home loan interest rates. I.e. 6.82%* Comparison rates may differ to this. |
Question: |
Who can access Line of Credit facilities? |
Answer: |
Line of Credit facilities can be used for Owner occupied, investment or business purposes |
Question: |
What kind of repayment options exist for Line of Credit facilities? |
Answer: |
Interest only for the first 15 years (called the Revolving Credit Period). Principal and interest for the remainder of the loan term |
Question: |
Can you split into various accounts a Line of Credit loan? |
Answer: |
You can have up to 4 separate loan accounts under one facility |
Question: |
What sort of security is required for a Line of Credit? |
Answer: |
Usually 1 st registered mortgage over a residential property is required as security |
