What is a line of credit?
A line of credit is a home loan which allows you to draw funds as you need them up to an approved credit limit. Line of credit home loans are also known as revolving line of credit or equity line of credit loans.
Why would you use a line of credit?
One of the main reasons to use a line of credit is because it is flexible, your money is at call and you only pay interest on the portion of the loan you've used.
What should I be mindful of?
Generally, a line of credit is more expensive than other home loans, so, if you feel this type of home loan is for you, you might consider having a line of credit for a proportion of your home loan rather than the whole amount.
You also need to be disciplined with a line of credit because you can use it to pay for other purchases (such as holidays, everyday living expenses etc) which means you could end up paying interest to fund your lifestyle for many years to come.
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What you need to know
The product issuer and credit provider is AMP Bank Limited ABN 15 081 596 009, AFSL and Australian credit licence 234517.
It’s important to consider your circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account. Information including interest rates is subject to change without notice.
Any application is subject to AMP Bank’s approval. Terms and conditions apply and are available at amp.com.au/bankterms or 13 30 30. Fees and charges may be payable. Full details are available in the Fees and charges guide.
This information is provided by AMP Bank Limited. Read our Financial Services Guide available at amp.com.au/fsg for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.
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A target market determination for these products is available on our TMD page.