Line Of Credit loans

Loans For Your Home

The line of credit is perfect for someone who wants to borrow extra money and have access just like an offset account. The difference between an offset account (where it is your saved money) and a line of credit is that the money in this account is borrowed. Imagine the line of credit like a big credit card.

A line of credit loan is generally setup for you to repay the interest only, which is great for various investments and accessing equity in your home, but not generally recommended for your main home loan.

Talk to Finance Seekers about a good balance between the usability of the line of credit and standard loan.

LOAN TYPE	PROS	CONS
Basic Variable Loan	Economic interest rate Fewer fees	Basic features May have Limited repayments
Standard Variable Loan	Allows extra repayments Lots of features If interest rates go down - enjoy the benefit of lower rates	Interest rate may go up
Fixed Rate Loan	Know your repayments even if rates go up	If rates go down, you could be paying more Can be inflexible - limit additional repayments "Stuck" during fixed rate period.
Offset Loan	Fullest feature set Ability to access money while saving interest Discount packages available	Small loans attract interest rate penalty
Line of Credit	Flexible with ability to access funds immediately Flexible repayment structure	Can be dangerous for your own home loan - requires discipline. Can attract small premium on interest rate

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