Line of credit

Line of credit

Line of Credit Loans are generally interest only revolving credit facilities secured against the equity in your home or investment property. These loans are also known as Equity Loans.

The borrower is required to make interest only repayments and has the freedom to choose when they will repay the principal. Lines of credit may be good for people who have fluctuating incomes as well as a great degree of discipline.

Similar to a credit card, a line of credit allows the holder to withdraw funds up to a set limit at any time and generally for any purpose. Unlike a personal loan, you do not need to justify the use of this facility to anyone other than yourself. If you think that you may be tempted to use the line of credit as you would ready cash, for lifestyle purposes – then the facility is not for you.

So how does a line of credit work? The lender assigns you a credit limit secured against your property, and when you need cash you draw against that limit, usually by writing a cheque or using a special debit card. As you pay back the loan (the terms of repayment vary), the money becomes available to you again. Line of Credit loans usually attract a slightly higher rate of interest than a regular home loan.

One of the biggest advantages of a Line of Credit is that you always have ready access to money, which makes this type of loan attractive to investors. You can also use the facility to fund investments, home renovation and other unforeseen expenses. It is a great access to funds during short periods of unemployment, illness, maternity leave etc.

Do not be caught without access to funds again!

Why not use the available equity in your home to obtain funds for any worthwhile purpose?
 

 

 


What Our Customers Are Saying


“My wife and I just wanted to let you know that it was great working with everyone from Honey Home Loans. We had no problems, everyone was extremely polite and the paperwork was moving right along. I will tell you that I have recommended your business to any that I have talked to about refinancing or loan issues!
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Barry and Janice, Vic
“I just wanted to say thank-you again for organizing our refinance and making our lives so much better. I would recommend your company to anyone. You and your staff are great. I feel very comfortable doing business with you. You are wonderful with people.
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Katherine and Ted, Vic
“This has been the VERY best lending experience I have ever had!! I took out a Home Equity Loan with Honey Home Loans. Your employees were knowledgeable, courteous, efficient and helpful. Everything was done in a timely manner.
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M Gonzales, WA