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Ahhhh, so I had it round the wrong way. You use property/equity to help you purchase bank bills (and hopefully profit from them at maturity) just like you could use LOC to buy shares or other investments, not bank bills to help you buy property. I thought it was like a mortgage-alternative and I...

So how do people use it in property investing? I know it sounds like I'm really obtuse, but do you think you could give me a step by step example?

When you say 'in lieu of a term loan' do you mean you bought a property and you got a bank bill over it instead of a mortgage?

My brain is still completely tied in knots about bank bills and how you use them in property investing. I'm imagining something like this: You have a property debt-free. Hypothetically, let's say the property is valued at $500k. You take out a LOC against it for, say, $300k, at 5.5%...