What Steven Cousley Does

A home line line of credit offers you an easy credit facility using the equity in your home as collateral. You can use your line of credit just like a regular credit card but without the higher rates of credit card interest. The interest you pay is at the same rate as your home mortgage.

You can also save interest on your home loan at the same time by paying extra cash into your account. If you need it, you can easily redraw the cash at any time, up to your credit limit. However while you aren’t using it, any extra payments are saving you interest on the daily balance of your home loan.

If your bank or finance company has the facility, you can even combine your line of credit with your home loan into what is called a home accelerator loan. With this type of loan package, your entire paycheck is deposited into your home loan. You can draw funds as you need them but while your idle cash is sitting in your account, it is saving you interest.

Discuss these options with your bank or broker and find out what will work best for you. It’s your money, make it work for you.