How does an 'Access Equity' Line of Credit Loan work?
It is an approved borrowing limit that works similarly to a credit card: once approved, you can draw down on the funds up to your approved credit limit, as needed and repay as and when required.
The approved limit is determined by the equity in your property. Equity is the difference between the value of your property and the amount still owing on it. So if your home is valued at $600,000, and you still owe $300,000 on your current home loan, your equity is $300,000.
- Low variable interest rate
- Interest is only paid on the amount drawn
- Withdraw funds up to your approved credit limit when you need it
- Use your line of credit for everyday expenses and purchases
- Statements are issued monthly on the anniversary date on the loan
Home Loans provided to approved applicants only. Credit and lending criteria applies and is subject to change without notice.
^ Advertised rate valid from 13 December 2016, is subject to change without notice and may be withdrawn at any time before a credit contract is entered into. Rate available for new Access Equity facilities of at least $150,000 or more where borrowings are less than 80% of the security property value. Rate includes a Package Variable Discount of 0.95% p.a. applied to the Bank’s Access Equity Variable Rate (currently 6.02% p.a.). Discount is applied for as long as the loan remains part of the Home Package Plus and may be varied if the loan purpose is changed before settlement. New loans only, pre-approvals excluded.
Loans are issued by Suncorp-Metway Ltd ABN 66 010 831 722 Australian Credit Licence number 229882 (“Suncorp Bank”). To approved applicants only. Fees, charges, terms and conditions apply and are available on request.
Lenders Mortgage Insurance (LMI)
If you are borrowing more than 80% of the value of the property, you will be required to pay Lenders Mortgage Insurance. This is a one-off payment and can be financed into the loan.
Lenders Mortgage Insurance protects Suncorp Bank against loss in the event of a forced sale of a mortgage property. It does not insure you but may make it possible for you to buy a home with a smaller deposit. You will still be responsible for all amounts owing in relation to your loan.
You can choose to split your loan and fix a portion of your borrowings at a fixed interest rate for greater budgeting certainty. At expiry all fixed rate loans revert to the Standard Variable rate and may differ to the Access Equity variable interest rate
A rate that is variable and is subject to change over the loan term.