If you need access to your existing equity to fund a renovation, purchase an investment property or for any planned or unexpected expenses, then the Flexi Home Credit Loan can help you free up your funds through a revolving line of credit.
A line of credit loan is a similar to a credit card where the bank offers you a pre-approved limit and can use as little or as much of that amount as and when you need it, with interest due on your loan balance.
While typical of many line of credit loans, the variable interest rate is high, so the total cost you pay in interest will accumulate over time to add up to a pretty large cost depending on how long you take to repay your loan.
A standout feature of the Flexi Home Credit Loan is the flexibility you over how you use and payback your funds. A major advantage is that this loan has no set repayment schedule and you can draw on the credit limit you are approved for when and as often as you’d like as long as you keep your loan balance below this limit.
But, be sure to keep close track because you will be charged interest on what you use.
Accessing your funds can be done via a Visa debit card, BPAY or the MOVE Bank internet banking portal.
Owner-occupiers only need to put down a small deposit for this loan and while still small, investors must make at least a 15 per cent deposit. Lenders mortgage insurance is an additional cost that you must pay if you make smaller than 20 per cent of a deposit.
A line of credit is a flexible way to make the most of your equity and use the funds when you need to. As the loan limit depends on how much equity you have in your home or investment property, this type of line might not suit first home buyers.
And since a credit line is offered, this loan would be most beneficial to borrowers who are sensible in their spending and on top on their finances.
If you’ve owned your home for a while and want to tap into your equity, the MOVE Flexi Credit Loan allows you to access these funds through a revolving line of credit so you can pay for things such as renovations or education.
The nature of line of credit loans takes discipline and is best suited for savvy spenders. So, it’s worth taking a close look at your finances and even to sit down with a financial planner before deciding if the Flexi Credit Loan is a great option for you in the long run.
It’s also worth noting that MOVE have a very limited branch network and shorter hours for telephone support than a lot of other lenders, however there is a speedy application and approval process as well as internet banking.
Follow the link below for more information or to enquire about the Flexi Home Credit from MOVE Bank.