Line of Credit Loan

Whether you need to access your existing equity to finance a renovation, property purchase or even to fund your ‘bucket list’ retirement plans, a line of credit or equity loan can help you realise your personal and financial goals.

As your property increases in value, the difference between the amount you owe on your mortgage and the amount your property is worth is called equity.

Normally you can access the current equity in your home when you sell the asset because the sale price goes to pay off any outstanding amount you owe on your loan, and anything that’s left over represents your profit in equity.
With a line of credit or line of equity loan, you can access that extra value earlier to further secure your financial position.

Advantages:

  • You can use the money when you need it and pay it back when you can.
  • Rates are generally lower than a personal loan or credit card.

Disadvantages:

  • Unless care is shown it is possible to reduce the equity you have built in your home.