A line of credit is a loan that’s secured against the equity you have in your home or investment properties.
It’s an interest only loan, and it can be a bit like having a giant credit card (so you do need to be disciplined about how you use it).
To be in the running to be approved, you need to have built up a reasonable amount of equity in the asset you are borrowing against.
Apart from having the flexibility to cover purchases of your choosing, a line of credit gives you the opportunity to buy assets (such as a car) at relatively lower interest rates than if you directly applied for a loan to buy the car.
Obviously, these types of loans are not for everyone, and you do need to restrain yourself from spending recklessly, or you risk getting in over your head.
We’d be pleased to speak with you about whether a line of credit is a good fit for your circumstances. And if it is, we can help you with all the arrangements.
Contact us today to learn more.