Line of Credit Equity Loans
Whether you are buying a property and applying for a loan for your home or an investment property the aim is always that the property will increase in value. As your property increases in value the difference between the amount you owe and the amount your property is worth increases and this difference is equity. Normally you can get your hands on the equity in your home when you sell because the sale price goes to pay off your remaining loan and was left is your profit in equity. However with a line of credit equity loan you can access that extra value to further secure your financial position, while enjoying living in a home of your own as well.
Featured Line of Credit Loan
Enjoy the flexibility of the loan and take advantage of the low interest rate with $0 application fee.
- Interest Rate of 6.28%
- Comparison Rate of 6.56%
- Application Fee of $0
- Maximum LVR With LMI: 90%
- Minimum Borrowing: $250,000
- Maximum Borrowing: $1,000,000
Featured Line of Credit Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Illawarra Home Loans Bank Beater Home Loan |
A low variable rate and a further 0.5% rate cut after 5 years. | 6.28% | 6.56% | $0 / $345 | 90% | $250,000 / $1,000,000 |
 
|
 State Custodians Mortgage Company Standard Variable Offset Loan |
A low variable interest rate home loan awarded the 2011 Non bank Lender of the Year. | 6.37% | 6.57% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
 Loans.com.au – Dream Catcher |
For a limited time when you apply for a Loans.com.au home loan you will get a low interest rate and no application fee. | 6.13% | 6.47% | $0 / $375 | 80% | $50,000 / $750,000 |
|
 UBank UHomeLoan (Variable Rate) |
A low interest rate home loan with a low application and ongoing fee | 6.14% | 6.14% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Fox Symes Fixed Rate Home Loan – 3 Year Fixed Rate |
A 3 year fixed rate home loan with no ongoing fee and free online redraws. | 6.20% | 6.40% | $Varies / $0 | 95% | $0 / $2,000,000 |
|
Illawarra Home Loans Bank Beater Home Loan |
A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.28% | 6.56% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 NAB Home Equity Line of Credit |
Access your equity to help finance your next home | 6.70% | $600 / $15 | 95% | $20,000 / $10,000,000 |
|
|
 MyRate Advantage Rate Loan |
Enjoy one of the lowest interest rate home loan in the market | 6.35% | 6.35% | $0 / $0 | 95% | $100,000 / $2,000,000 |
|
How Does A Line Of Credit Equity Loan Work?
In most cases you will be borrowing less than the value of the property purchase your home. Therefore from the beginning you alone is worth less than the value of your property so as you continue to make a regular repayments and additional repayments where you can you are increasing the equity of your home, at the same time as property values increase. A line of credit equity loan includes features which:
- Allows you a line of credit up to the value of the equity in your home. Your lender will define the value of the equity in your home and this may cost you a valuation fee to activate your line of credit home loan. Your credit limit will be set at around 80% of the value of your property.
- Access to funds at any time without making an application to your lender. A line of credit allows you to access the funds with your links transaction accounts or using Internet banking at any time for any amount you choose.
- No regular repayments are required until you reach your limit. Your repayments can be added to your line of credit so for example if you have drawn down $10,000 and your repayment is $100 a month your repayment can be drawn from your line of credit so the amount drawn down becomes $10,100.
- Monthly or annual fees. There can be fees associated with a line of credit home loan which may be charged monthly, six monthly or as an annual fee. On average a fee for a line of credit will be several hundred dollars a year.
- You can save on interest using your income to offset the loan amount. You can have all of your income deposited into your loan account and then draw your living expenses from your line of credit as you require them. Your interest on your loan is then only calculated on the remaining balance of your account saving you interest charges.
While there are fees associated with a line of credit equity loan and you will need to be very disciplined bigger spending and your repayment to make sure you don’t draw down more than you can afford, there are a range of benefits to being able to draw on the equity in your loan when the need. With a line of credit equity loan you could benefit from:
- Cheap credit. A home loan is the cheapest form of credit you will have available to you because the interest rate is much lower than that on credit cards or personal loans and even on some margin loans.
- Avoid fees for additional repayments or redraws. While a standard loan may allow you to deposit more into your loan account and then redraw when you need it, there are often fees associated with additional repayments and redraw facilities however with a line of credit loan you can access your equity amount for a set annual fee.
- You can use the money for whatever you choose. This means you can withdraw money from your line of credit equity loan to pay your bills, renovate, go on holiday or buy a new car and you don’t need to make an application to the bank to show them what you are using the money for all you do is withdraw the money.
- Increase your net worth by using a line of credit for investments. If you use the equity in your home to make investments which offer a good return and strong growth rate, you can by increasing your net worth as you use your money wisely to accumulate more appreciating assets.
If you have the discipline and the financial wherewithal to manage your spending using a line of credit equity loan you can leverage the equity you have accumulated in your home to strengthen your financial position and secure your financial future.
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- Need Some Money? Unlock the Equity in Your Home
A Line of Credit home loan can be a very valuable financial tool that can make home buying a very worthwhile and enjoyable experience if managed properly. - Line of Credit Home Loans
A line of credit home loan does more for you than simply assist you in buying your home it gives you the added security of spending your own equity money over and again at home loan interest rates. Any money taken out can be repaid in full at any time or paid back monthly. The minimum payment that must be made each month is the interest rate component of the loan.
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