You are considering the purchase of an investment property, you have worked out what you want to spend, the type of property that you want and where it should be located; now all you need to do is find the right loan to suit the occasion. As you will see that may not be as easy as you might think, there are a number of considerations to be made, a variety of products and options to consider, and most importantly structuring your total financing arrangements so as to maximise your financial situation.


Line of credit - Equity loans


Home equity is the difference between what you owe and what your home or property is worth. Home Equity or line of credit loans let you use the equity you have built up in your home to invest in whatever you choose. Line of credit (LOC) or equity loans are secured by a registered mortgage over a residential property. These loans provide access to funds, when required, up to the original limit set. Normally, the minimum repayment required is the monthly interest only. Some lenders require that principal reductions begin to be made after a certain period of time.


Benefits of line of credit:

• Its flexibility and because of this, it is often used by investors.

Money can be used as needed and paid back in a flexible manner without structured minimum principle and interest repayments.

The minimum required is the interest on the outstanding principal.


Getting the most information possible regarding your options is a great step to helping you achieve financial security. Contact Michael Ibbotson at Security National on (03) 9510 5400 or complete our friendly enquiry form and we'll get back to you shortly.