The best way to describe a Line of Credit is that it is like a very big Cedit Card, with your house as security.

There is a credit limit that you can draw funds up to, or pay down to zero. Usually you are only required to make interest payments on the outstanding balance. When considering a Line of Credit Facility look at the following:

• Line of Credit Facilities can attract higher Interest Rates and Fees.
• Most people require a structured type loan, and the flexibility of a Line of Credit may not suit them.
• Does your whole facility need a Line of Credit? Can you achieve a cheaper option with a combination of loans?

Lines of Credit are very useful facilities, but can come with a high price tag. A combination of loans with a Line of Credit may provide a more rounded solution.