Standard Home Loan vs Line of Credit

Standard Home Loan

A standard home loan involves borrowing a sum of money upfront to help you buy your home, which you then pay back over a set time frame, making payments at regular intervals based on the type of loan that you choose.

Line of Credit

A line of credit is more like an overdraft facility with an agreed limit. You can borrow the whole amount at once, or a little at a time. You pay interest only on the funds used, and make no principal payments while the loan is active. This type of loan is useful when you don’t need all the money upfront, i.e. when carrying out home renovations in gradual stages.

What’s the right loan for you?

If you need a loan which allows you to withdraw funds in stages, and allows you to make lump sum repayments at any time, then a line of credit may be suitable for you. If you are unsure please call us on 0800 38 48 58.




All credit applications will be subject to our usual lending criteria, terms and conditions. Fees may apply. Lenders mortgage insurance may be required. Loans are for residential New Zealand property only.
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