Line of credit
Lines of credit are similar to having a big chequebook, but with interest accruing on the balance. A line of credit, or equity line as they’re sometimes called, is an approved limit of borrowings that you can use a piece-at-a-time or all at once.
If you are using the money for investments such as property, which earn a good return, you are likely to increase your net wealth. Similar to an overdraft account, a line of credit allows you access to additional funds by drawing on the equity value of your home. You may not wish to sell just yet, but if the value of your home has appreciated, and you are in need of some extra cash to finance a home improvement or even an investment property, a line of credit loan may be the answer.