An Equity Home Loan allows the borrowers to use the equity in their existing property for other purposes such as renovations, investing in shares or managed funds, or financing an investment property.

If the funds are used for investment purposes, then the interest costs of an equity loan may be tax deductible.

An Equity Home Loan can be a tax efficient, money management tool that allows you to take advantage of investment opportunities as they arise.

Here just like with a Line of Credit loan, the interest rate is similar to other home loan products and is much below that offered on unsecured loans such as personal loans and credit cards.

Risks associated with Equity Home Loans are also similar to Lines of Credit in that the borrower needs to act responsibly in using funds from their home equity. But as before, the low cost of these funds make them the most attractive loan source for home owners.