What is the difference between a home loan and a line of credit?

Line of Credit products are typically an interest only lending facility with no scheduled minimum repayment like a standard variable or fixed home loan product. Repayments are based on the outstanding balance of the facility. Line of credit products are generally used to access the equity in a property asset, as cash and on call.

A home loan and a line of credit are both types of loans that can be used to finance a property purchase. A home loan is a lump sum loan that is typically used to purchase a property. The loan is secured against the property, meaning that if the borrower defaults on the loan, the lender can take possession of the property. The loan is typically paid off over a fixed period of time, with a set interest rate. A line of credit is a revolving loan that can be used to finance a property purchase. The loan is secured against the property, meaning that if the borrower defaults on the loan, the lender can take possession of the property. Unlike a home loan, the line of credit is not paid off over a fixed period of time. Instead, the borrower can draw on the loan as needed and make payments as they go. The interest rate on a line of credit is typically variable, meaning it can change over time. Both a home loan and a line of credit can be used to finance a property purchase, but they are different in terms of the repayment structure and the interest rate. It is important to understand the differences between the two before making a decision. To check out current interest rate offers, you can visit Goodrate on https://goodrate.com.au/home-loan.