Browsing South Australia » Home Loans » Line of Credit
Related Categories: Home Loans, Introductory Rate Home Loans, Construction Home Loans, Fixed Rate Home Loans, Bridging Loans, Low Doc Home Loans, Variable Rate Home Loans
The line of credit or equity line as it is sometimes called provides funds to be used for purchasing property, performing renovations and other types of needs that require large sums of cash. This form of lending has actually been around for well over a century and has been used by people of different income levels to purchase what they need.
This is a pre-approved amount of money from a lender that is usually based on your personal credit rating and other factors. A line of credit can be established by the amount of money you have on deposit combined with your personal assets and lending history. Property is one of the most frequent sources for having a line of credit. Quite often, you can create a line that is usually 80% of the property’s value depending on the lender.
The beauty of a line of credit is that the money can be used for any number of purchases that range from investing in the stock market to purchasing a home depending on the level that you have achieved. You can borrow up to the maximum amount and use it for any number of purchases. For example, if you have a line of credit worth $100,000, you can use it all at once or any amount that you want.
The advantages start with it being pre-approved so that you can use it for whatever you want. Whether you are interested in purchasing property or just borrowing a few thousand to make some renovations, this is a type of loan that is one of the most desirable.
Another advantage is that you only pay interest on the amount that you actually used. So, if you only used $20,000 of your $100,000, then you only pay the interest on the $20,000 that you took out. This gives you great flexibility on how much you want to use and you can combine it with other loans if you desire to make your purchase.
Also, if your credit line is based on property, you may be able to take out money at interest rates lower than what a lender might charge for a specific purchase. For example, money from your line of credit will often have a lower interest rate than an auto loan if you wish to purchase a vehicle.
You can also better gauge the amount you will need to pay back when using a line of credit as well. Because these are “evergreen” loans that have no time limit on paying them back as long as you make monthly payments, you can stretch out the pay back plan for years if you so desire. This also provides more flexibility when using this form of lending.
This will depend on your needs, but generally speaking it pays to know just how much of a line you can receive based on your assets. A credit line is often a better source than many traditional loans because of the flexibility involved. However, if you are purchasing property to move to a more expensive place, then you might find this form of lending not to be advantageous.
77 Grenfell Street
Shop 2
Adelaide, South Australia 5000
Australia
The wide variety of financial products and services offered by Rural bank, includes Visa debit cards, cheque accounts, direct debit and credit
81 The Parade
Norwood, South Australia 5067
Australia
SMBIA (Senior Mortgage Brokers in Adelaide) offers various types of home loans.
6 Tilburn Rd
Deer Park, Victoria 3023
Australia
A public company founded in 1963, Circle Credit Co-operative
58 Belmore St
Yarrawonga, Victoria 3730
Australia
Established in 1972, the Central Murray Credit Union (CMCU)
50 Martin Place
Sydney, New South Wales 2000
Australia
Macquarie Bank Limited is the largest investment bank in
Level 28, 360 Elizabeth Street
Melbourne, Victoria 3000
Australia
Members Equity Bank Limited, also known as ME Bank is a
144 Collins Street
Hobart, Tasmania 7000
Australia
MyState Bank Limited is an Australian financial institution
219-223 Castlereagh St
Sydney, New South Wales 2000
Australia
Bank of Sydney offers a wide range of general banking
(1259 Finance Enquiries since 12-06-2015 01:00PM)
85 Castlereagh St
Sydney, New South Wales 2000
Australia
JP Morgan Bank in Australia and New Zealand was launched as
(1678 Finance Enquiries since 22-11-2015 09:29AM)
88 Phillip Street
Sydney, New South Wales 2000
Australia
Established in Australia in 1988, the Royal Bank of Scotland
(5171 Finance Enquiries since 22-02-2016 09:39AM)
222 High Street
Kew, Victoria 3101
Australia
BankMecu banking products include home loans, car loans,
(8987 Finance Enquiries since 04-05-2015 01:08PM)
88 Phillip Street
Level 31
Sydney, New South Wales 2000
Australia
China Construction Bank Corporation is one of the China’s
(922 Finance Enquiries since 14-07-2015 10:48AM)