Reduce your interest payments with a line of credit mortgage

A home loan with a line of credit allows you to put all or most of your salary into your home loan and make the bulk of your purchases through the month by using your credit card and taking advantage of the interest free period. By doing this, you can reduce the outstanding balance of your home loan thereby saving you money through reduced interest charges. Here we look at line of credit home loans available in Australia including the benefits and who they would most suit.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Looking for a great value home loan with super fast approval?

Get Pre-Approval online & get a response in minutes with MyRate.

What is a line of credit account?

With a line of credit feature on your home loan, you can save money on your total interest charges by paying all or most of your entire salary into your home loan each month. Instead of using your salary to pay for everyday living expenses, you make your purchases using your credit card. Ideally, you will use a credit card with at least a 55 day interest free period so that you are not paying interest on your monthly living expenses.

With your salary deposited into your line of credit home loan, you will be reducing the amount of interest that is payable calculated on the outstanding balance. When your credit card payment for the month falls due, you pay by drawing down the payment from the extra amount in your line of credit account.

The benefits of a line of credit account

The main benefit of a line of credit account is that you can reduce the total interest that you would pay over the life of the loan. Another benefit is that you will have extra funds in your home loan that you can use should the need arise.

Is a line of credit account suitable for me?

A line of credit home loan may be more suitable for some home borrowers than for others. For example a line of credit home loan is often an interest only loan with no specific term for repaying the principal. A line of credit loan will generally have a slightly higher interest rate and may be most suitable to those who have fluctuating incomes. Line of credit home loans are popular in Sydney, Melbourne and Brisbane where mortgages and incomes are generally higher than in other areas.

Also, a line of credit loan will be more beneficial to those who can pay extra than the minimum monthly repayment.

For more information on line of credit loans visit our home loan resources page for line of credit options available from our partners.

DOMDocument::loadXML(): Start tag expected, '<' not found in Entity, line: 2

Digg this Post page to del.icio.us Post page to Furl

Home Loan Info.com.au

Home Loans Australia

Refinancing Information

Home Loan Information

Mortgage Broker Information

Featured Home Loan Information

First home buyer's loans reviewed - Getting into the property market

The increasing cost of real estate across Australia is making it increasingly difficult for first home buyers to get into the property market. With this in mind, home lenders have come up with more innovative loan options in order to help first home buyers get into the property market. Here we look at some of the first home buyer loans available today that are helping more Australians get into their first home.

Home Loan Redraw Facility How Can It Benefit You?

Today, there are many different innovative features available on home loans. Some of these features, including redraw facilities, can help you save money on the total interest costs of your home loan over the term of the loan. Here we look at the redraw facility and how it could benefit you.

Home loans in Hobart

While Hobart's housing market is strong, housing affordability has actually improved throughout 2006. Therefore, this improved housing affordability provides the perfect opportunity for new home buyers in Hobart to get into the property market before house prices rise further. Here are some tips for first home buyers in Hobart on home loans and the First home Owners Grant.

Finding the right mortgage broker in Adelaide

Today, there are many options for Adelaide home buyers when it comes to getting the right home loan. But with so many different options, how do you find the best deal to suit your situation? Perhaps you should consider seeking professional help from an Adelaide mortgage broker. Here we provide some tips on how to select the right mortgage broker in Adelaide

Choosing the right mortgage broker in Perth

With Perth experiencing a property boom thanks to the continuing strength in the resources sector, the competition among mortgage brokers in Perth is high. For the Perth homebuyer, this is great news because the increased competition means that you will have a far better choice when choosing a mortgage broker to help you get the best possible home loan deal. Here we provide some tips on finding the right Perth mortgage broker.