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With
this type of loan you can access funds up to
your approved limit at any time. Your salary
can be paid directly into the loan account
and you can access the balance of the loan
at any time – just like a credit card. You
can use these funds to purchase shares, go
on holiday, buy a new car, start home
renovations and so much more!
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Money is easily accessed
by cheque or ATM card linked to this loan.
You can use it for living
expenses or for other
investments
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By depositing your
salary and savings into this loan you reduce
the interest charge
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Extra repayments are
allowed at any time
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A mortgage reduction
program can be helpful in managing this type
of loan
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Ease of withdrawal means
that if you are undisciplined this loan can
get out of control
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The interest rate is
usually higher than traditional Variable
Rate and Low Frills loans
Advantages
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Fully flexible with the ability to make
extra repayments or interest only
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Excellent if you need to access extra funds
by using the equity in your home or from
principle
repayments
Disadvantages
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Usually
comes with a higher interest rate
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Undisciplined borrows may never reduce the
the principle amount on their loan.
There are many types of line of credit home
loans offered by a number of lenders. To
find the better fixed loan types click the
link below.
Compare Line of Credit
Loans
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