AAA Mortgage Solutions

LINE OF CREDIT LOANS

Need to free up funds?
If you have equity in your existing property, a line of credit loan could help you do that.

A line of credit home loan acts as a reverse mortgage, allowing you to withdraw funds from the equity in your home.

  • Access money for renovations, purchasing investment property or other expenses
  • Suited to disciplined home owners who can commit to regular contributions
  • We’ll help you decide if a line of credit loan is right for you, and set it up to suit your situation

Think a line of credit loan will give you what you’re looking for? Speak to one of our experienced and caring brokers.

What is a line of credit loan?

A line of credit home loan can be used in a similar way to a credit card. It allows you to borrow funds for home renovations, purchasing property, or even non-investment expenses like new cars and holidays, using existing equity in your home.

On monthly basis, your total mortgage is reduced by depositing money into the account, while being increased by withdrawing from the account.

Advantages of a line of credit home loan

This type of loan is best suited to people who want flexibility in their loan and can commit to regularly contributing funds to the account. It usually has a lower interest rate than credit cards and personal loans, so can be a more cost-effective way of accessing funds. It also allows you to make extra repayments without penalties.

It can be a good option for owners of investment properties to use as a tool for investment buffers and assisting with property cash flows.

To make sure the line of credit account gets regular inbound payments, it can be wise to set up your salary so that your income gets paid directly into the loan.

Disadvantages of line of credit loans

Line of credit loans usually have higher interest rates than fixed or variable mortgages because of the transactional nature of the facility.

You will also need to be disciplined – if you start accessing available cash for things that don’t provide a return, your debt won’t be reduced effectively and things can get out of control.

Speak with us

We’ll educate you on whether or not a line of credit option suits you. Chat with one of our friendly brokers today.

Stay Informed

We place huge emphasis on educating our clients, so that they can be personally confident in their decision. Let us keep you updated with the latest information so you can reach your goals faster.

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At AAA Mortgage Solutions we’re all about making home loans easy. Speak with us to see which loan type suits you best.

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AAA Mortgage Solutions

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