With the HSBC Home Equity Loan, borrowers can set up a line of credit facility starting from just $50k, however it is only available if you’re an owner occupier with an LVR up to 80% (or at least 20% equity in your home). When it comes to fees all you’ll pay is the $150 settlement fee upfront, but there is a monthly service fee of $35, as well as a $300 discharge fee.
You can borrow up to $1,000,000 and there are no set repayments which gives you the flexibility to make loan repayments at any time. The HSBC Home Equity Loan (Premier) also comes with unlimited free monthly withdrawals, which may be made via a range of options including ATM, EFTPOS, BPAY, phone/internet banking and Bank@Post. You’ll also have the option to split your loan between variable and fixed.
Who it's good for:
This loan is good for owner occupiers looking to access the equity that they’ve built up in their home and with the flexibility of no set terms to repay their mortgage.
With no set repayment requirements, you could end up paying a hefty amount of interest down the track, so it’s important to eventually pay back your debt by setting up a direct debit to coincide with payday.