Line of credit loans are the ideal loan facility to have when looking to use the equity in your home to build your investment portfolio.

A line of credit is a very flexible facility that offers many benefits to you as an investor;

• The loan can normally be split into many different section.
• You have complete control over the access of your available funds.
• There are no penalties for paying the loan off.
• There are usually no charges to make draw downs.
• You will often be offered other free or low cost day to day banking facilities.
• You have complete control over the access of your available funds;

Once your line of credit has been established, you will normally have control over the use of the funds, and can access them at a moments notice.

NOTE: On occassions your bank may request that you provide eveidence that you are using the funds for the purpose that you requested the loan in the first place.

As such if you had indicated you wanted to buy investment properties, they may want to see a copy of the contract for sale.

This would not normally prevent you from making the decision to buy and putting down the holding deposit. However the contract for sale may be requested before the full deposit is released.

There are no penalties for paying the loan off;

Line of credit loans are designed so that they can be fully drawn and fully paid off from time to time. They are a fully flexible facility.

Therefore there are no penalties for reducing the loan balance to nil.

NOTE: This is different to removing the facility all together. So if you want to transfer your loan from one bank to another there will be fees that will vary from bank to bank depending on how long you had the line of credit loans.

There are usually no charges to make draw downs;

Once again line of credit loans are flexible and draw downs can normally be arranged in a number of ways. It is normal to have a cheque book, credit or debit card and internet access.

So you can access your line of credit funds in a number of ways. While there can be some small transaction fees depending on which method you are using, there are not normally any other costs to draw funds.

You will often be offered other free or low cost day to day banking facilities;

Line of credit loans are often seen as the Rolls Royce of loans, they are not for everyone and the banks tend to be quite strict with their lending criteria.

They also often have some very attractive banking packages that go with their line of credit loans. These may be Gold or platinum credit cards, free or low cost travel insurances etc.

In summary a line of credit loan is the ideal facility if you are looking to use the equity in your home to start or continue to build your investment portfolio.

For a specific example here is an article on “How To Use Line Of Credit Loans For Investing In Property”