Debt Management and Leverage

Residential property mortgages

Line of credit facility

A Line of Credit Facility loan is like a negative bank account.

You can repay as much as you like and also withdraw as much as you like up to the limit of the loan.

There may be no fixed repayments as such, although, some facilities may require you to pay the interest amount.

The loan is an interest only loan, and the interest is calculated daily.

By minimising the loan outstanding on any given day, you save the interest you have to pay.

This type of loan requires financial discipline and good record keeping to be effective.