Compare line of credit loans
A line of credit loan allows customers to borrow money using the equity in their home. The table below features line of credit home loans offered by our Online Partners.
Instantly compare 5400+ Canstar expert rated loans based on the inputs below
We couldn’t find any results from our Online Partners.
If you want to keep comparing, here are products from other providers based on your search.
Showing 12 of 12 results
To see more results adjust the filters above
Unsure of a term in the above table? View glossary
The initial results in the table above are sorted by Star Rating (High-Low) , then Comparison rate^ (Low-High) , then Provider Name (Alphabetical) . Additional filters may have been applied, see top of table for details.
About line of credit home loans
What is a line of credit loan?
As a homeowner, it’s likely you’ve built up some equity in your property – that’s the difference between how much the property is worth and how much you owe on your home loan. One way to access this home equity is to sell your home. But a line of credit home loan could allow you to tap into home equity without the need to sell up.
How does a line of credit loan work?
A line of credit home loan lets you use your home equity as a source of finance. Let’s say for instance that your home is worth $900,000, and you have a home loan balance of $400,000. This gives you home equity of $500,000, and your lender may offer a line of credit worth $200,000 based on this equity. That’s money you can draw on whenever you need. The funds are available without having to apply to the bank each time you want to borrow more. But, of course, the trade-off is that you no longer have that level of equity in your home loan, as you’ve borrowed against it.
Unlike a traditional home loan, a line of credit loan won’t usually have set monthly repayments. At a minimum, you will need to pay the interest charges and any loan fees that apply each month, and you can generally make extra payments at any time to help reduce the balance owing. Each time you reduce the balance, you regain access to the credit you can draw on. In this way, a line of credit home loan acts as a revolving credit facility in much the same way as a credit card. However, the interest rate on the loan is typically lower than other types of credit, such as a credit card or personal loan.
What can I use a line of credit home loan for?
Depending on the rules of the lender, a line of credit loan can potentially be used in a variety of situations, such as:
- Consolidating debt
- Buying an investment property
- Investing in other assets
- Buying land
- Renovating your home
- Personal uses such as paying your children’s education costs.
The lender you select may specify some things that a line of credit loan cannot be used for. This could include business purposes or off-the-plan property purchases.
It’s important to keep in mind that this type of loan comes with fees and charges, as well as limitations. It’s a good idea to read any important information carefully, and weigh up your options, before signing up.
Frequently Asked Questions about Line of Credit Home Loans
Latest in home loans
Canstar Star Ratings and Awards
Looking for an award-winning product or to switch providers or brands? Canstar rates products based on price and features in our Star Ratings and Awards. Our expert Research team shares insights about which products offer 5-Star value and which providers offer outstanding value overall. We also reveal which providers have the most satisfied customers in our dedicated Customer Satisfaction Awards.
Explore more Home Loans:
Summerland Bank Home Loans & Rates
Home loan options
Family home guarantee Home Loans
Unloan home loans
Home Loans for First Home Buyers
Compare Fixed Rate Home Loans
Compare Investment Property Home Loan Rates
Refinance Home Loan Comparison
Compare Construction Home Loans
Compare 90% LVR home loans
Compare home loans with offset accounts
Compare split home loans
About the authors
Nicola Field, Personal Finance Writer
Joshua Sale, Group Manager, Research & Ratings
Thanks for visiting Canstar, Australia’s biggest financial comparison site*
Important information
For those that love the detail
This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.