The CUA Equity Line of Credit Loan allows borrowers with an existing property to draw on any equity via a linked credit card.
It’s an ongoing loan facility that gives the borrower instant access to the funds, up to an agreed limit.
Borrowers may use the funds as they see fit, such as to grow an investment portfolio or for day-to-day use.
Similar to a credit card, interest is charged on the loan balance, and the borrower can pay down the loan and later draw against the funds as they wish.
Like most of these types of loans, the CUA Equity Line of Credit Loan has a higher rate of interest than most traditional mortgages.
Borrowers can deposit their income directly into the line of credit account to reduce the amount of interest that will be paid. As interest will be calculated daily, borrowers can be sure that they are never paying more interest than they have agreed to in relation to what is in the account on any given day.
Borrowers will also be able to make extra repayments for no extra cost.
The Equity Line of Credit Loan may suit a borrower who is looking to draw on the equity in their existing property to use the funds for other purposes.
It might suit a borrower who doesn’t mind paying a higher rate of interest than they would on a traditional mortgage.
The CUA Equity Line of Credit Loan will give borrowers a range of flexible options for managing their finances. The combination of a line of credit and additional repayments with no ongoing fees makes for some strong opportunities in terms of refinancing and renovation.
Borrowers should note that line of credit loans require careful management to prevent them from blowing out the amount of interest paid in the course of a loan. On the other hand, equity lines of credit generally offer slightly lower rates of interest than credit card accounts. This loan might be a solid choice for borrowers looking for a reliable source of extra funds when required.
For further information about the CUA Equity Line of Credit Loan, please click the link below.