A line of credit gives you the ultimate flexibility within your
mortgage. Normally there is no set term for your loan. You have a
preset limit that you can draw against and pay off at will. A line
of Credit eliminates the need to have other types of accounts as
you receive a chequebook, ATM card and a credit card. To make the
most benefit of this type of account, it is recommended you have
your salary and wages paid into the account. With the interest
calculated daily on a Line of Credit account, you should see a
rapid decrease in the reduction of your loan.
Unlike other loan types where once your loan is paid off and the
account is closed, with a Line of Credit as long as the Lender
holds the security of your Title Deed, the account remains open.
Your account may not have been used for a couple of years, however
you may decide to buy a new car, or an investment property. With a
Line of Credit, you simple write a cheque from your account up to
your pre set limit and make your purchase. This way there is no
need to reapply for your loan, pay establishment fees again and set
up costs. You control your own financial destiny!