The Transport Mutual Credit Union Home Equity Loan will give you a line of credit with funds that have been accessed from the equity built up in your property so you can fund investments or make other purchases. The variable interest rate on this loan is high, but this is pretty standard across most line of credit loans on the market. Repayments can be made on a weekly, fortnightly or monthly basis and you only pay towards the interest on your loan.
There is no penalty for repaying your Home Equity Loan early which you can do by making additional repayments towards your loan balance or by making lump sum repayments. As long as you have the equity available, you can increase your loan amount via the top up facility without any minimum restrictions. However, you must be borrowing at least the minimum allowed amount for this loan.
The Transport Mutual Credit Union Home Equity Loan could be good for homeowners and investors looking to use the equity in their property to fund other projects or investments by accessing their equity as a line of credit. Something to consider is that this lender has limited branch access for face-to-face service, which might not suit borrowers looking to handle their loan account in person.
The Transport Mutual Credit Union Home Equity Loan could be a great option if you’ve had your property long enough to build up equity that you are looking to use for other purposes. However, a home equity loan is similar to a very large credit card and customers should be disciplined in how they use and repay the loan, as the higher interest rates may affect how much is repaid over the course of the loan. Not to mention, this loan has a high cost to establish that you will have to pay upfront.
The suitability of the Transport Mutual Credit Union Home Equity Loan as an option can be explored further below.