The Select Encompass Credit Union Mortgage Line of Credit makes it easy to borrow funds using the equity you already own in your home or investment property. A line of credit works in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need it, with interest paid on the outstanding balance. This type of loan is a flexible mortgage that allows you to draw on funds when you need them, up to your approved limit. This loan allows you to make additional repayments to pay off your home loan faster. Altering the frequency of repayments may also help repay the loan faster by making more frequent payments in the form of additional repayments. The funds from any additional repayments you make can be redrawn for free from the offered redraw facility. An offset account is also offered on this loan, but check with Select Encompass Credit Union to see if this will be a 100 per cent or partially offset account. You can also add loan repayment insurance to this loan as an extra cost that would protect you in case you’re unable to continue making your repayments.
Who is the Select Encompass Credit Union Mortgage Line of Credit good for?
The Select Encompass Credit Union Mortgage Line of Credit may suit property investors who are in a position to use existing equity in a property to buy another property and expand their investment portfolio. With no charges for extra repayments and zero ongoing fees, this could provide savings over time.
Review - What RateCity says
With a higher variable interest rate, the Select Encompass Credit Union Mortgage Line of Credit may better suit investors who want to use the equity in an existing property to expand their portfolio, however, the lack of establishment and ongoing fees might make this an attractive offer for owner-occupiers and refinancers alike.
Select Encompass Credit Union Mortgage Line of Credit Options
The Select Encompass Credit Union Mortgage Line of Credit has a minimum borrowing amount. Find out more by following the below link.