Line Of Credit / Equity Home Loan



Line of Credit, also known as Equity Lines or Revolving Credit, works more like a credit card and provides increased flexibility. The lender assigns you a credit limit secured against your property, and when you need cash you draw against that limit, usually by writing a cheque or using a special debit card. As you pay back the loan (the terms of repayment vary), the money becomes available to you again. Line of Credit loans usually attract a slightly higher rate of interest than a loan where the balance is continuously reducing. One of the biggest advantages of a Line of Credit is that you always have ready access to money, which makes this type of loan attractive to investors.