Lending Hand Finance - Home Loans (Line of Credit)

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Line of Credit Mortgage - A Nice Fit For The Yo-Yo Income

If a graph of your annual income looks like the teeth of Jaws, you’re obviously in need of flexibility… a line of credit mortgage may just be the option for you. Line of credit mortgages are generally interest-only loans with no set term for the loan to be repaid. This gives the borrower the freedom to decide when they will make payments on the principal, a useful tool for those with incomes that ebb and flow or for property investors looking to take advantage of investment opportunities.

One of the main concerns for a line of credit mortgage is that the speed in which the loan is repaid is dependent on the borrower. Borrowers will therefore need to exercise a level of discipline, and there is a very good reason why.

A line of credit allows you to make the bulk of your day-to-day purchases or payments with a credit card. By using the credit card – and the interest free period it entails – you can then channel the majority of your wage into your loan until your credit card payment is due. This effectively reduces the balance of your loan for part of the month, therefore reducing the interest payable. This is known as offset savings. If you are disciplined, you pay the credit card off each month by using funds from the line of credit. If you are not, you can find yourself in a bind.

Line of credit mortgages typically have a higher interest rate than a standard loan so it’s important to weigh up the benefits of offset savings compared to a more traditional principal and interest mortgage. While offset savings will contribute to helping you own your own home faster, only additional repayments will you really help drive your mortgage down at a quicker rate.

Let us explore your options and find a line of credit from one of the following lenders:

Adelaide Bank
AMP
ANZ
Australian Central Credit Union
BankSA / St George
BankWest
Citibank
Commonwealth / Colonial
GE
Heritage
Home Loans Limited
Homeside
HomeStart
IMB
ING Direct
LaTrobe
Liberty
Owner Builder Finance
Pepper
Pioneer
Plan Lending
Suncorp
The Rock
Westpac

Did You Know?

If you have more questions regarding a line of credit and whether it's suitable for you, then speak to Lending Hand Finance.

Contact Lending Hand Finance on
1300 850 545 or

Mortgage & Finance Association of Australia

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Our choice of lenders like Adelaide Bank, Bank SA, ANZ, Australian Central Credit Union, St George, Bank West, Citibank, CBA, Commonwealth Bank, GE Money, Heritage, Home Loans Limited, Home Side Lending, Home Start, HSBC, IMB, ING Direct, La Trobe, Liberty, Natioanal Australian Bank, NAB, Challenger / Plan Lending, Owner Builder Finance, Pepper Home Loans, Pioneer, Suncorp, TheRock and Westpac can provide a line of credit on your mortgage.