Mortgage For Life
 Maybe a better expression would be "A Mortgage for Living".
One of the best kept secrets in Banking is the Revolving
Line of Credit Mortgage (RLOC). Most Banks and many non-bank
lenders now offer a RLOC product, but most people don't
know they exist, let alone understand the power they can
give responsible borrowers. The RLOC is an invention of
Citibank Australia and has been around since the mid 80s.
This type of Mortgage provides permanent access to funds
up to an approved credit limit of up to 90% of the value of the security property.
This type of Mortgage allows responsible borrowers to
run their finances without the need to revisit or reapply
to their Lender for extra funds for life. These loans
can be run as a "one account" banking facility that receives
all your income and accommodates all debts.
Used wisely, a RLOC can greatly reduce the amount of interest
paid on debt because your income is credited directly
to the loan and immediately reduces the principal until
redrawn. In conjunction with a credit card, borrowers
can accumulate regular living expenses on their credit
card while all income is directed to the RLOC account
reducing the debt until the due outstanding balance of
the card is automatically cleared from the RLOC at the
end of the interest free period. Because your credit limit
is higher than your actual level of debt, you always have
access to funds and have therefore, no need for other
savings or cheque accounts.
The RLOC Mortgage is ideal for people with strong incomes
who want to reduce their debt quickly and have the discipline
to manage the credit limit. The facility can be split
into sub accounts if required to separate personal debt
from investment debt. This type of mortgage is ideal for
investors who require permanent access to funds for investment
purposes. Once the credit limit is established, it remains
in place regardless of the amount of actual debt.
 These are very powerful loans and are not for those who
can't manage their spending. On the other hand, for those
who are good with their money, they provide an excellent
vehicle to manage their finances in a single account and
minimise banking fees and many unnecessary over the counter
type transactions.
Talk to us about how a RLOC might assist you better manage
your current finance needs and provide a secure flexible
platform for everything else your financial life will demand.
Call The Right Loan Co on 1300 668 636 for FREE Sydney Mortgage Broker services or leave your details with us and we'll call you. |
