Hey Brokers,
I just had a quick question regarding an equity release for a renovation on my PPOR.
I have 80k available equity to release but what is the recommended way to do this?
From my reading on these forums it can be done via a LOC but this comes with some negatives. The other way is just a standard variable loan.
The part I am a bit hazy on is that with a LOC you are charged interest on the amount you use. So if you do not use it you pay no interest, obviously this works well for a reno because payments will be staged as you work through the renovation.
If I get a separate loan though how does this work in regards to accessing these funds and interest payments? Can you just link it to an offset and the 80k is parked in the offset and interest charged when you start using it?
I just had a quick question regarding an equity release for a renovation on my PPOR.
I have 80k available equity to release but what is the recommended way to do this?
From my reading on these forums it can be done via a LOC but this comes with some negatives. The other way is just a standard variable loan.
The part I am a bit hazy on is that with a LOC you are charged interest on the amount you use. So if you do not use it you pay no interest, obviously this works well for a reno because payments will be staged as you work through the renovation.
If I get a separate loan though how does this work in regards to accessing these funds and interest payments? Can you just link it to an offset and the 80k is parked in the offset and interest charged when you start using it?