Line of Credit

What Is An Equity Line Of Credit?

These loans are a great way to access the equity in your home to use for things like home renovations, investments or other personal purchases. Repayments on a line of credit loan are determined by the interest rate applicable at that time. If you have sufficient equity in your home, you will need to make a separate application for a line of credit loan.

You have the added advantage of being able to make unlimited deposits / repayments as your repayments are not set. You must check the conditions of these loans as they are sometimes more expensive than standard products.

A line of credit is also a popular product with property investors as it gives them instant access for a cash deposit, and the ability to keep their properties separate from each other i.e. not cross secured.

Think of it like a gigantic credit card with a limit. So planning and caution is strongly advised.

Some of the other benefits of this type of loan are:

  1. You can withdraw up to the credit limit
  2. Financial institutions usually provide large credit limits
  3. Lower interest rates than other credit facilities
  4. Almost the same interest rates as home loan rates
  5. Easy access to funds
  6. Flexibility in a sense that it provides a means to consolidate your debts


A Line of Credit lets you manage the funds pretty much the way you want to, even to the extent of deciding when to pay the principal. However, flexibility comes with responsibility. Without discipline and money management skills, this type of loan can be disastrous. If you are money cautious and need a loan that provides you more control, then this loan type will be ideal.

What’s next?

If you want to get a personal individual assessment and discuss what your options are? Contact us on 1300 CAP ONE (227 663) or fill in our Free Assessment Form.

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