Resources: Home Loan Types
Line of Credit Home Loans
A revolving line of credit that is secured against a property. It becomes a fully functional account so if cash is needed the borrower draws against that limit by either a debit card or cheque. The borrower can withdraw funds at any time up to the limit however; they are required to at least cover the interest and fees on the loan when making payments.
Advantages
- Savings are accessed by cheque or ATM card linked to the loan.
- Salaries and savings are deposited into this loan to reduce the interest charged.
- Extra repayments are allowed.
Disadvantages
- If undisciplined with savings this loan can get out of control.
- The interest rate is usually higher than Variable Rate and Basic Loans.
Let a ratesonline broker contact you about a Line of Credit Home Loan.
