Line of Credit Home Loans

A line of credit home loan also known as a revolving line of credit is a credit facility secured with a first mortgage on a residential property. Similar to a credit card, they allow you to withdraw funds up to a set limit at any time and have become popular due to their flexibility and features. Repayments can be made in full or on a monthly basis.

This type of loan can be used to purchase most types of property, from the family home to an investment property. As long as you make the minimum monthly repayments, you can use the line of credit to carry out renovations, invest in shares or pay the bills.


  • easy access to funds, with most line of credit facilities offering cheque books, plastic cards, Internet and phone banking and a range of transactions
  • withdraw up to your credit limit without having to gain pre-approval
  • credit limit amounts are usually higher than credit cards
  • interest rates are generally lower than credit cards
  • interest on the credit facility can be minimised by directing all your income into your home loan account.
  • consolidate your debts by transferring other debts such as personal and car loans into your mortgage


While these loans give borrowers considerable freedom, they are not for everyone.

Like any credit card account, line of credit loans require financial discipline and good budgeting skills to stay within your financial limits.

However if you are careful with your money and want the flexibility a line of credit offers, this type of loan may suit you.