Line of Credit
The "Line of Credit" is a relatively new form of finance facility, although it is increasing in popularity quickly. A line of credit is a flexible and efficient form of finance, which is secured against residential property. Some of the benefits are: -
Portability
This form of loan is easily transferred from one property to another making the difficult process of moving home one step easier by being able to maintain the same mortgage.
Debt Consolidation
It provides a way of reducing credit card debt, personal finance and car loans by consolidating all that lending into a single line of credit facility that has a lower interest rate than almost all other forms of borrowing. This will result in significant savings of interest costs payable by you. The link of credit facility allows for all your income streams to be credited directly to your home loan, offsetting the interest that is calculated daily.
As well as a line of credit facility, the services of the lender provide you with convenient Debit Card, EFTPOS and chequebook options to access funds at any time. The option to obtain a credit card (up to 55 day interest free) is also available, which can transfer the outstanding card balance into the loan at the end of the interest free period enabling you to save money.
Accessibility
Your money is readily accessible 24hrs a day through Debit cards and where desired a chequebook just like a normal bank account.
Lifetime Facility
The line of credit is not for a fixed time period, enabling you to maintain the same facility as long as you like. It is also a way of re-borrowing funds simply and with minimal fees giving you increased flexibility and peace of mind when needing to buy big-ticket items, such as cars and furniture.
Tax Effectiveness
Offsetting the interest of your loan is far better than having money hidden away in savings accounts, as normally the interest rate payable on your home loan is higher than most savings accounts are paying. Also, interest paid to you by your savings account results in you having to pay more tax whereas reducing your loan repayments means you are able to save money.
We invite you to contact us.