Exploring Loan Features: Lines of Credit, Offset Accounts and More

Beyond basic loans, lenders offer optional features. Here are some common ones:

• Line of credit:  Provides a credit limit secured against your home. You can draw funds up to the limit and only pay interest on what you use. Useful for renovations or investments but requires discipline.

• Offset account:  As explained earlier, this reduces interest by offsetting the account balance against your loan commbank.com.au.

• Redraw facility:  Lets you withdraw extra repayments you’ve made money.com.au.

• Portability:  Allows you to transfer your existing home loan to a new property without refinancing. Handy if you move but want to keep your existing loan and rate.

  
  

Different lenders may charge additional fees for these features or require a package. A broker can help you decide which features you’ll actually use and whether the cost is worthwhile.