Menu
Menu
A home equity loan (also known as a line of credit) enables you to borrow money using the equity in your property.
When you access funds through a home equity loan, it means you are withdrawing funds from your mortgage based on the value of equity you have built upon the property.
You can take the line of credit and use it on anything you want, from a holiday to home renovations, or even finance another property investment.
Upfront Fees. Some lenders may charge application and valuation fees and ask you to pay the discharge fee when the loan term ends.
Interest Charges. Lenders’ charge interest on the amount you spend, not on the total credit.
Ongoing Fees. Some banks impose a modest monthly service fee instead of, or sometimes along with the application fee.
Low-interest Rates. One of the most lucrative benefits of a home equity loan is that it often has a lower interest rate than other loan products such as credit cards and personal loans.
Flexibility. You can withdraw funds easily via an ATM card or cheque linked to the mortgage. Some lenders enable borrowers to withdraw the amount through telephone banking systems or online banking systems.
Accessibility. Home equity loans are easier to get than other types of loans.
Additional Repayments. You can easily make extra repayments that can help lessen the amount of interest paid over the entire loan term.
Hard To Manage. While it is easy to access the funds and most home equity loans include a large sum of money, the borrower needs to be financially disciplined to manage this type of credit.
Equity Loss. When you obtain a home equity loan, you are reducing the value you have in your house. Your equity is wealth, and it is yours when needed. Make sure you weigh all the perks before obtaining the line of credit.
Security. If you fail to repay the loan according to the contract terms, the bank may take the property as repayment.
No End Date. The repayment flexibility of a home equity loan can be a bad thing, too, for your finances. For instance, the longer you take to repay the borrowed amount, the more expensive it gets.
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”
Jammaya purchased an investment property in Queensland. She’s taking advantage of our HiLo investor loan product which enables clients to get a 0.75% interest rate on their owner occupier home loan! Many clients are saving thousands per year with this amazing investor-only deal!
Leoni completed a purchase agreement for her first rental property. She secured a fantastic interest rate and her new property is optimised for maximum tax deductions.
“I was offered the rate, checked it with my bank, went into another branch and no one could match it!”