Hume Bank Line of Credit Loan

Features

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.

Who is the Hume Bank Line of Credit Loan good for?

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.

Review - What RateCity says

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.

Hume Bank Line of Credit Loan Options

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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Variable Rates from

5.60%

Advertised rate

5.66%

Comparison rate
Pros
  • Access to property equity through a line of credit.
  • No ongoing fees.
  • Loan split option.
Cons
  • High variable interest rate.
  • Moderately high upfront cost.
  • No 100 percent offset account.
Eligibility

Must be able to provide proof of income.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Line of Credit Loans
  • Investors
Fees
  • Estimated upfront fees: $750.00
  • Discharge fees: $200
  • Ongoing fees: $0

The Hume Bank Line of Credit Loan has no ongoing monthly or annual fees.

There is a high upfront establishment fee in addition to an average discharge fee payable when the loan ends or if you refinance with another lender.

If you decide to top up the loan, you will have to pay a top up fee.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Hume Bank

Hume Bank is one of Australia’s leading regional mutual financial institutions and gives you access to your loan online, although customer service is offered over the phone or at a Hume Bank branch within the small branch network across south eastern NSW and north eastern Victoria. 

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