Home Equity Loans or Line of Credit Loans

This home loan product is known by a number of names -  it's also known as a Revolving Line of Credit. 

This type of loan has become popular due to its flexibility and features.

It's a similar concept to having a credit card but much larger in credit limit.

A Home Equity Loan is a credit facility secured with a first mortgage on a residential property.

It allows you to withdraw funds up to a set limit (the equity you have in your home) at any time.

A Home Equity Loan allows you maximum flexibility with your finances.  You can use the line of credit to carry out renovations, invest in shares, purchase another investment property or even pay the bills.

Pros and Cons of a Home Equity Loan

Advantages of a Home Equity Loan

• A solution for  borrowers who are on track with their own debt reduction program.

• Flexible payment options – Usually interest only, and you only pay for what you use. 

• You can choose not to pay any repayments for a period of time, and let your interest capitalise.  When you reach your 100%, interest payments are required.  

• Lump sum repayments are allowed at any time.

• Better Accessibility - Money is easily accessed by cheque or ATM card linked to the loan.

• Works well in combination with a traditional home loan.

Why would I not want a Home Equity Loan?

•    Attracts higher interest rates than standard variable rate loans.

•    For undisciplined or inexperienced borrowers, there is a risk of not reducing the loan. This can become costly and hard to manage.

Contact Us Now

for a free, unbiased appraisal of the best Home Loan Product for you.

Other Home Loan Products which you may wish to learn more about on this site include:

• Basic Home Loans

• Variable Rate Home Loans

• Fixed Rate Home Loans

• Intro Rate Home Loans

• Split Rate Home Loans

• Low Doc Home Loans

• Packaged Home Loans

Investment Potential

Did you know that now is an excellent time to leverage the equity in your home? Property prices are more affordable than in a very long while, and rental properties in the Newcastle and Hunter Valley regions are in short supply.

To discuss the opportunities available, call or email us now for free and unbiased advice on your loan options. We'll get the best deal for you, and save you a lot of legwork in the process.

Learn more about Investment Loan Products.