Challenge Line of Credit

THE ABOVE RATE IS A PER ANNUM RATE, FEES & OR CHARGES MAY APPLY

Our home equity line of credit is a revolving credit line that lets you leverage the equity you have accumulated in your home.

It features a very attractive interest rate (lower than most other types of loans) and, is accessible by cheque or credit card, your Home Equity Line may be used for virtually any purpose.

The combination of attractive rates, flexible payment schedule and easy access makes the Challenge Home Equity line a smart choice for meeting your financial needs.

A home equity line establishes a maximum line of credit that you can draw against by simply writing a cheque or using your nominated credit card. You borrow what you need when you need it. As you repay your principal, that money becomes available to borrow over and over again.

That means you don't have to reapply every time you need funds. And you can use your line for any purpose from home improvement or tuition, to debt consolidation or buying a new car.

Clearly, a home equity line is the smart solution for those who want the financial flexibility to use their equity over a long period of time.

At Challenge, you can apply three easy ways. You can:

Features

CHEQUE BOOK & CREDIT CARD ACCESS

Challenge Mortgages cheque book access to your loan facility. We also have deposit books available with this loan facility.

You also receive credit card access via your exsiting credit card or you may apply for one of our linked credit cards to access your loan facility via ATM's.

PURPOSE:

Owner occupied or investment residential property purchases, refinancing an existing residential loan.

LOAN SIZE:

$70,000 up to $950,000

TERM:

Up to 30 years

REPAYMENTS:

Principal and interest (variable rate) OR interest only for 2,3 or 5 years

FREQUENCY:

Instalments can be made fortnightly or monthly. Extra payments on variable loans can be made at anytime.

CONVERT TO FIXED RATE:

All or part of the loan can be converted to a fixed rate loan at any time at no cost.

SPLIT FACILITY:

You can have up to 2 separate loans under the one facility

 

MAXIMUM WHICH CAN BE LENT ON VALUE OF PROPERTY:

95% for owner occupied & investment loans to $300,000· 90% for owner occupied & investment loans to $400,000· 85% for owner occupied and investment loans from $300,000 - $500,000· 75% for all loans over $500,000 to $950,000

FEES:

Application fee Government and bank charges, Legal fees and disbursements · No monthly administration fees or early repayment fees for variable rate loans· $760 (incl. GST)(one property, individual borrowers)· For example, mortgage duty, registration fees FID and property searches. Your Mobile Lender will give you an estimate of these costs.You will have to pay lenders legal fees of $350 and disbursements.

OTHER CONDITIONS:

All repayments must be made by electronic direct debit· Lenders Mortgage Insurance is required for all Challenge Mortgages residential property loans. The premium is payable by the borrower only if the amount borrowed is greater than 80% of the value of the property or the loan amount is greater than $500,000· A security discharge administration fee of $500 is payable when you repay your loan in full plus 1% of the original loan balance if within the first five years.