The Hume Bank Line of Credit Loan leverages the equity in your home or investment property and gives you access to these funds through a line of credit. The funds from your Line of Credit Loan can be used to invest in managed funds, shares or other potential investments.
A line of credit is essentially a loan with a set limit and term. It’s a kind of like having a giant credit card, the main difference being that you pay interest on the whole balance and with a credit card, you only pay interest on the funds you use.
In terms of features, the Line of Credit Loan gives you the freedom to choose between weekly, fortnightly or monthly repayments and lets you choose between paying principal and interest or interest-only repayments for a set period of time.
When it comes to accessing your line of credit, this loan has flexible withdrawal facilities and gives you access to a cashcard, Visa debit card and a chequebook.
While there is no 100 percent offset facility or redraw facility, you do have the option of making unlimited additional payments to reduce your loan quicker or to split your loan in order to have a variable and fixed rate portion.
If you find yourself needing extra funds in the future, this loan does have a top up facility available. But be aware that because of this, line of credit loans are best suited for borrowers who are disciplined spenders.
If you’ve owned your home or investment property for a while have built up a bit of equity in your bricks and mortar, then the Hume Bank Line of Credit Loan provides funds accessed from this equity through a line of credit. Although, your funds can be used for anything except construction, which may rule out some owner-occupiers and first home buyers looking to build.
Additionally, since you can access a revolving line of credit and even top up your loan, the Line of Credit Loan is best suited if you are a conscious spender and keep close track of your finances.
The Line of Credit Loan has entry and exit fees as well as a high variable interest rate, though this is generally the case with most line of credit loans. And, you could offset the cost of your interest by splitting your loan to lock in a fixed rate.
Like any line of credit loan, it’s worth taking a close look at your finances or to seek out personal financial advice since going over your approved credit limit could sink you into a hole filled with overdraft charges. This being said, this loan option is probably best suited if you’re disciplined with your spending and will only use your credit for the allowable uses.
This Hume Bank Line of Credit Loan is a variable rate loan that uses the equity in your home or investment property. You can use a Hume Bank Line of Credit Loans to either refinance or kickstart your investment.
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