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» Equity Loans (Line of Credit)
- Equity loans are interest only loans where the borrower usually has to only meet the interest accumulated on the debit balance of the loan. The interest rate is usually variable.
- It is a way of refinancing other loans, as you are able to put finance in place which can be used to purchase property or other types of investments in the future.
- Equity loans establish a limit that the client may draw up to. If the loan is not fully drawn then the client only pays interest on the amount owing, not the limit.
- Equity loans are similar to large credit cards (Overdraft).
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