A REVOLVING line of credit is secured against a property. It becomes a fully functional account so if cash is needed the borrower draws against that limit by either a debit card or cheque.
The borrower can withdraw funds at any time up to the limit however; they are required to at least cover the interest and fees on the loan when making payments.
- Savings are accessed by cheque or ATM card linked to the loan.
- Salaries and savings are deposited into this loan to reduce the interest charged.
Extra repayments are allowed.
- If undisciplined with savings this loan can get out of control.
- The interest rate is usually higher than Variable Rate and Basic Loans.
To check out the latest Line of Credit home loan rates click here.
Let a ratesonline broker contact you about a Line of Credit Home Loan.
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