A Line Of Credit is essentially a flexible transnational mortgage which lets you access your own funds as necessary.
This is the ideal option for people who want to access the equity in their current home for investment/ any other purposes like a holiday, renovations or buying a car. These are a great way of minimizing debts too.
If you are prudent with your money, you can opt for getting your salary deposited directly into the home loan and use a credit card for all your day-to-day purchases. This card can later be swept to the Line of Credit before expiration of your interest-free days.
In certain cases, these lines of credit do not necessitate that you make any regular payments. The important thing is that you remain within the set credit limit- this is referred to as capitalized interest. When the interest is actually charged to the account, it will be added to the home loan balance amount.
A Line of Credit is one of the most convenient types of credit but is not really suitable for everyone. Any person who has a Line of Credit, will have to fastidiously keep track of how much he/she owes.
The best way to decide whether this is a good option for you, is to speak with Mr Broker’s expert mortgage brokers. They will ask questions, get all the relevant details and the help ascertain whether the Line of Credit product suits your needs. It is also important to understand that this is essentially a premium product and the interest rates will be higher on this product. Though there are a few exceptions, this is the case even with “professional packages”.
You can contact Mr Broker via our website and we will help find out which of the lenders can provide you with discounts.
Always ask for a second opinion for best finance options..