Terminology
Hi Ya'll
I am just a little confused with lending terminology.
What is the essential difference between LOC and Redraw style methods of accessing the equity in an existing property?
Is a LOC like a seperate loan altogether secured by your equity (and your existing loan and LOC are effectively stapled together) -- whereas a Redraw is the same loan just with more pulled out?
Any cost, tax advantages, rate difference, other benefits/cons for one method over the other?
Hi Ya'll
I am just a little confused with lending terminology.
What is the essential difference between LOC and Redraw style methods of accessing the equity in an existing property?
Is a LOC like a seperate loan altogether secured by your equity (and your existing loan and LOC are effectively stapled together) -- whereas a Redraw is the same loan just with more pulled out?
Any cost, tax advantages, rate difference, other benefits/cons for one method over the other?