Home Loan Options for Adelaide Investors and Families: Line of Credit Loans
A line of credit usually refers to a pre-arranged amount of credit that you can use as a cash reserve and draw upon at any time.
Line of credit home loans work in a similar way, as equity from your current property allows you to access funds when you need them.
Essentially, these loans can be used in the same way you would use a credit card.
Expenditures such as holidays, new cars and home renovations can all be paid for using a line of credit mortgage option.Book a FREE appointment with a professional mortgage broker now!
On a monthly basis, your total mortgage would be reduced by the total amount coming in to the account, while increasing by amounts withdrawn in cash or credit.
This mortgage option works well for home buyers who want flexibility from their loan, and can commit to regularly contributing funds to the account.
One way of ensuring that the account receives regular inbound payments is to set up your salary so that your income gets paid directly into the loan.
Opposed to credit cards or personal loans, line of credit mortgages tend to have lower interest rates.
Compared to mortgage options such as fixed or variable, line of credit loans can have higher interest rates.
You can also often make extra repayments to a line of credit loan without penalties from your lender.
AAA Mortgage Solutions can talk you through all of these options to help you decide if a line of credit home loan is the best choice for your situation, or if there is another mortgage option that would be better suited.
Give them a call on 1300 555 888 to arrange a chat today.