The Commonwealth Bank Viridian Line of Credit Loan has a higher interest rate than most traditional home loans, but the rate is comparable to those offered by similar products.
This line of credit home loan, operates in a similar way to a credit card in that it allows the borrower make withdrawals up to an agreed loan amount and daily card limit.
Unlike most credit cards, however, the Commonwealth Bank Viridian Line of Credit Loan allows the borrower to get access to the equity in their home loan so they can buy another property without applying for a new mortgage.
It allows the borrower to pay no principal repayments, as long as interest, fees and charges are paid monthly.
Other features on this loan including mortgage portability, which is the feature that allows borrowers to take their loan with them if they move house.
The Commonwealth Bank Viridian Line of Credit Loan can also be taken out with the Commonwealth Bank Wealth Package, which offers a discount on the interest rate and waives some of the fees such as the establishment and ongoing fees. However, the borrower will be required to pay an annual package fee.
The Commonwealth Bank Viridian Line of Credit is designed for existing Commonwealth Bank home loan customers who wish to access some of the equity in their current home loan and withdraw that money for other purposes.
It might suit a borrower looking to use that equity to buy a new property without having to take out another home loan. However, be aware that a line-of-credit may be a more expensive alternative.
The Commonwealth Bank Viridian Line of Credit Loan allows borrowers to access the equity in their existing home loan.
Like most line of credit products, this loan has a high interest rate compared with most traditional mortgages.
It charges an upfront fee and monthly service fees, both of which may be waived if taking out the Wealth Package. But be aware the Wealth Package also has an annual fee charged.
Find out if the Commonwealth Bank Viridian Line of Credit Loan suits you.