Macquarie Bank Line of Credit Home Loan
Posted January 10th, 2011
and last modified November 9th, 2011A line of credit mortgage is a credit facility that is secured with a first mortgage on your home or other residential property. It works in much the same way as does a credit card in that you will actually receive such a card to go with the loan. You will receive a set limit to which you will be allowed to withdraw funds at any time from your home loan account and the money so withdrawn can be repaid in full at any time or, if you choose, on an ongoing monthly basis. You can buy most types of property with a line of credit mortgage ranging from your family home to a mortgage property. All you will be required to do will be to meet the minimum monthly repayments. Such a home loan is a good way to carry out renovations, buying shares of simply pay outstanding bills from time to time.
A home loan designed for investors and home owners alike
The Macquarie Bank Line of Credit home loan is such a loan. It has been particularly designed for both investors and borrowers alike who need a flexible mortgage in order to fully enjoy their investment and lifestyle opportunities. In fact a Macquarie Bank Line of Credit home loan goes further than most other similar mortgages in that it can be ‘mixed and matched’ with the Macquarie Premium Loan containing an offset account that will allow you to go even further in meeting your own individual financial requirements.
Some of the main benefits that a Macquarie Bank Line of Credit home loan offers will include the following:
- It will come with a credit card facility that will allow you to obtain a discount interest rate off the standard variable interest rate.
- You can choose a fixed interest rate option from one to five years.
- You can choose repayments containing interest only.
- After settlement you can include up to 10 other accounts.
- You will have 24 hour a day 7 days a week access via the internet or telephone.
- There is $0 application fee and no settlement fee to pay.
A Macquarie Bank Line of Credit home loan will let you do much more than just buy your home for you. It will give you a revolving line of credit that will be continuous throughout the life of the loan and its flexibility will be much appreciated if circumstances in the future demand that you can only pay interest for a period in order to overcome a financial difficulty that you hadn’t previously anticipated.
Further benefits a Line of Credit home loan offers are:
- Easy access to funds when you need them through a cheque book, plastic card, internet or phone banking.
- Ability to withdraw funds up to your credit limit without having to go to your lender for approval.
- Your credit limit borrowing amounts are usually higher than that offered by credit card companies.
- Interest rates are usually much lower than credit cards.
- You are able to minimize the interest on your credit facility by placing all your income through your home loan account.
- You will be able to consolidate your outstanding debts such as car loans, credit cards and personal loans into your mortgage therefore enhancing your personal lifestyle.
Some of the inherent risks involved
Although there is much to be gained from having a Macquarie Bank Line of Credit home loan there are also certain risks involved, especially if you happen to be a person who has limited financial discipline.
Just like any other credit card account a Line of Credit mortgage will require good budgeting skills and a strict financial discipline for you to remain within your credit limits. Some of the dangers to be aware of that are inherent in Line of Credit home loans will be:
- You will be more exposed to interest rate increases because of the line of credit being repaid at a variable interest rate.
- If the line of credit is used for your personal home it will require considerable discipline to ensure that over time the principal owing on the property is reduced.
- If you have equity in the property the temptation will always exist for you to withdraw funds for personal purposes in the hope that one day you will be able to repay the money back. Apart from the obvious risks with this practice you may also be creating considerable confusion when completing your taxation return.
However, if you are prudent with your borrowings and want the flexibility a line of credit home loan offers, this type of home loan will give you many advantages over that of other types of mortgages.
| Minimum Loan Amount | $150,000 | |
|---|---|---|
| Maximum Loan Amount | $2,000,000 | |
| Maximum LVR | 90% | |
| Maximum Insured LVR | 90% | |
| Mortgage Offset Account | No | |
| Loan Redraw Facility | No | |
| Split Loan Facility | No | |
| Fixed Interest Option | No |
| Interest Rate Type | Fixed | |
|---|---|---|
| Interest Rate | 6.20% | |
| Comparison Rate | 6.56% | |
| Repayment Type | Interest Only | |
| Repayment Frequency | Weekly | |
| Extra Repayments | No |
| Application Fee | $0 | |
|---|---|---|
| Service Fee | $0 |
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