This is a mortgage secured credit facility where an overall credit limit is approved by the lender and may be drawn down at any time for any purpose up to but not exceeding the approved limit.
These loans are usually taken by people who already own a home or have good equity.
For example, if you own a $400,000 property outright, you can usually arrange an Equity Access Loan (EAL) of up to $320,000 or 80% of the property value without arranging mortgage insurance. If you have a $100,000 home loan limit outstanding , your lender will be able to approve a separate Equity Access Loan for a limit of $220,000. Of course, approval will depend on your ability to prove sufficient income to qualify for the loan.
Jan Vincent
Montrose, VICTORIA
Shannon Oatley
Director & Licensed Conveyancer
Property Conveyancing Group, VICTORIA
Don & Christine Perrett
Leongatha, VICTORIA
Paul & Barb Spark
Somerville VICTORIA