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Line of Credit

A credit line is a revolving credit trait also known as an equity credit.

A credit line is a revolving credit trait also known as an equity credit that gives you access to equity in your property to generate additional wealth using investment, complete capital improvements, or cash free for other purposes.

Your loan line is secured through residential property. It allows you to withdraw funds at any time up to a fixed limit. In general, a credit line is an interest-only loan, and you can capitalize on the interest payment in some cases. Usually, the interest rate for a standard variable home loan is higher, so consult with our mortgage specialist.

How does a line of credit work?

A loan line is like a large secured credit card. It usually will be established over a standard home loan period (e.g., 30 years) with the credit option available for one or five years, or revolving – that is, long periods. In general, you pay only interest on the part of the loan you receive. Some house loans will renew the credit line after a certain period, while others will require you to start paying on the principal after a fixed period. In general, the interest rate on a credit line is variable.

Who will a line of credit suit?

Credit lines may fit borrowers with fluctuating incomes, investors who want to renovate their property, or anybody who needs a lot of flexibility. However, good discipline and budgeting are needed to reduce the amount of the loan over time with our mortgage specialist’s help.