Line of Credit Loan

Financial flexibility is key in managing Australia’s competitive property market while keeping your cash flow sustainable.

Line of credit loans (LOC) are excellent options for applicants and professionals needing financial flexibility and a reliable financial backup plan. This service allows you to access funds, whether you require money for urgent expenses, unexpected costs, or seizing possibilities.

Line of Credit: Everything You Need to Know

When it comes to homeownership, the biggest benefit you can leverage over time is the ability to build up equity.

Lines of credit are revolving sources of funds, like a typical credit card, and can give you access to a specified amount as needed.

With a line of credit house loan, you can repeatedly borrow up to the limit, pay it back, and then borrow the total amount again. Besides, untapped funds will not charge interest, unlike when taking up a typical personal loan.

Interest-only Line of Credit

The credit limit for the home loan on this fully transactional line of credit is fixed for the ten-year interest-only duration.

The advantage of this choice is that you can use the equity in your house for personal expenses, investment property, or stock purchases.

Talk to our senior mortgage brokers at 1300 030 388 and we’ll discuss which type works best for your unique circumstances.

Pros and Cons of Line of Credit Loans

Each loan type has its own set of benefits and setbacks. You must weigh all factors and determine how they interact with your financial circumstances and goals to determine whether a line of credit loan works for you.


  • Flexibility: You can access money as needed to the extent of your approved credit limit. As a result, it can be used as a flexible financial tool to manage various anticipated and unforeseen expenses.
  • You don’t pay interest on the entire available sum; instead, you only pay interest on the amount you borrow.
  • Compared to credit cards or personal loans, lines of credit frequently have cheaper interest rates. If you have a high credit score, this could help you save money on interest payments.
  • Compared to traditional loans, lines of credit often offer a shorter approval process, enabling you to access funds when required quickly.


  • If not used sensibly, the revolving structure of a line of credit might lead to excessive borrowing and debt accumulation.
  • You may still be responsible for the total amount if you make interest-only payments on a line of credit because the principal will not be repaid.
  • Some credit lines could be subject to charges, including yearly fees, maintenance fees, or transaction costs. Before establishing a line of credit, comprehend the charge structure.
  • With a secured line of credit, your house serves as collateral, and if it is not paid back, the entire balance is added to your mortgage. 

Speak with our mortgage brokers at 1300 030 388 and discover how you can benefit from the freedom a line of credit loan offers. Our home loan professionals are here to help you at every turn.


What financial flexibility might credit loans provide for me?

Lines of credit loans enable you to access funds whenever you need it, whether for unplanned spending, urgent situations, or scheduled purchases.

The majority of lenders have strict requirements for approving a line of credit. A line of credit can be set up as a fixed-term, revolving, or recurring option. Here, it’s essential to remember not to overspend and to be aware of any fees, charges, or penalties associated with the loan.

Should I take a line of credit home loan?

If it complements your financial situation, a line of credit should be surprisingly helpful in emergencies! You can borrow funds up to another specified amount, pay it back, and then borrow up to that limit once more as often as you require and as long as you can make regular responsible repayments.

As discussed, there are pros and cons to this financial solution. So we highly recommend speaking with our mortgage brokers first and we’ll take you through better home loan options if we find it best for your unique situation.

What additional benefits are there?

Line of credit loans may also offer a few other advantages. Flexibility and accessibility are the two primary ones. Mortgages with lines of credit may be more straightforward to get than other forms of mortgages, and the money can be withdrawn quickly, frequently in the same manner as conventional bank or savings accounts. 

Can I now borrow against my property’s equity?

If you’ve owned the property for a while and have a small remaining balance over your existing home loan, then you may have built up enough equity to apply for a line of credit home loan.

One solution to free up some equity is to get a line of credit using the equity in your current house. Equity is the gap between the amount of your mortgage debt and the value of your home. Most lenders will let you borrow up to 80% of your home’s equity.

Contact us at 1800 030 388 or make an online and we’ll discuss how you can save on your home loan!

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