The Bankwest Equity Access Loan has a minimum loan amount, but no maximum as long as you’re only borrowing up to 90 per cent of your property’s value. This loan borrows against the equity in your property and offers these funds through the available line of credit.
Keep in mind that you will have to pay for lenders mortgage insurance if you make smaller than a 20 per cent deposit.
Repayments can be made weekly, fortnightly and monthly as principal and interest payments.
Additional repayments are also allowed and a redraw facility is included for those wanting to access these payments. There is no offset account included as part of a line of credit loan.
The loan amount can also be increased and can be accessed via an optional MasterCard debit card.
The Bankwest Equity Access Loan is good for homeowners wanting to use the equity in their home to finance renovations or other activities.
The loan is not available to first homebuyers as it uses the existing equity owned by the borrower in the property.
The Bankwest Equity Access Loan is a variable loan for homeowners wanting to use their property equity as security against a large line of credit.
The loan also has a relatively high interest rate for a line of credit loan, although this is generally the range of rates offered on line of credit loans. The loan functions much like a large credit card and it’s important to be disciplined when accessing the line of credit, as higher rates and large loan amounts may result in more being paid over the life of the loan.
However, whilst the loan has reasonably low upfront fees, there is a large annual fee, which may impact the comparison rate and affect the amount of interest paid over the life of the loan. This may make the loan more suitable to those wanting immediate access to the equity in their property, as otherwise customers may be paying an annual fee just for the option to use their equity.
Ultimately, the Bankwest Equity Access Loan is a fairly standard line of credit loan and may be worth considering for homeowners needing access to their home equity in the near future for renovations or other purposes.
The Bankwest Equity Access Loan is a variable line of credit loan offered to owner-occupiers and investors.