ACL 390611 | MFAA Member | Established 2005
Line of Credit.Draw Only What You Need.
A line of credit gives you a limit to draw on and repay as you need, with interest charged only on what you use. That flexibility cuts both ways, because nothing in the facility brings the balance down unless you do. Tell us what the money is for and we will show you whether a line of credit suits it or a loan that ends would cost you less.
15 minutes. Tell us what the facility is for and roughly how much you would draw on it. No credit check, no paperwork, no obligation, and we will tell you whether a line of credit or a simpler structure fits better. Lenders pay us a commission on settlement and we disclose it in writing before any work begins.
Intellect Finance – Line of Credit Brokers
Independent since 2005 | ACL 390611What Is a Line of Credit and How Does It Work?
A line of credit is a revolving facility with a set limit that you draw from, repay and draw again, paying interest only on the balance you have used. The common version is secured against the equity in your home, and repayments are generally not required while the balance stays inside the limit, because the interest is added to the balance instead. Unsecured versions exist with much smaller limits.
It behaves more like a large overdraft than a loan. The lender approves a limit, most often against your home in what is called a home equity line of credit, and you move money in and out of it like a transaction account. Pay in and the balance falls, draw out and it rises, and interest is worked out on whatever the balance is. There is no lump sum at settlement and, on the common version, no repayment schedule pulling the balance to zero.
That last point is the whole decision. A line of credit is only as disciplined as the person holding it, and for most people who want a buffer, a loan with an offset account gives similar flexibility with a repayment built in. A fixed term personal loan is the better tool when you know the amount and want the debt gone by a date.
Common Situations
When People Ask Us for a Line of Credit
Six situations cover most line of credit enquiries. In two of them we will usually talk you out of it.
Income that arrives unevenly
Commission, bonuses or seasonal work, where some months cover the bills twice and others do not. A line of credit smooths the gaps and is repaid in the good months. This is the case it was built for, provided the good months actually come.
A renovation paid in stages
Paying trades as each one finishes rather than borrowing the full amount on day one, so interest runs only on what has been spent. For structural work a staged construction facility may suit better. See renovation loans.
An investor keeping borrowing separate
The ATO looks at what borrowed money was used for, and interest on a loan that funds both private and rental spending has to be apportioned. A separate facility for investment spending keeps that clean. See investment loans and talk to your accountant.
A standing buffer for emergencies
Reasonable, but for most people savings sitting in an offset account do the same job without a debt attached. A line of credit held just in case still counts against your borrowing capacity for as long as it is open.
Clearing credit card debt
Usually the wrong tool. Moving card debt onto a facility with no required repayments tends to move the problem rather than solve it. A fixed term loan that reaches zero on a set date is the honest fix. See unsecured personal loans.
You run a business from home
If most of the money will go to the business, it is not consumer credit and different rules apply, including on Best Interests Duty. See cashflow loans for business facilities.
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Joseph Sukkar
Principal Broker · ACL 390611
Who You’re Dealing With
Built on 25 Years in Australian Finance
Joseph Sukkar started in finance in 2000 and founded Intellect Finance in Penrith in 2005. Since then the team has arranged more than 6,500 loans for clients across Australia, from first homes to complex commercial and asset finance.
Personal and asset finance sits with Chantelle, our Asset and Personal Finance Specialist. On a line of credit the useful work is the question most applications skip: whether you need one at all. For most people who want a buffer, a loan with an offset account does a similar job with less that can go wrong, and where a line of credit does fit, the limit should be sized to what you will actually use rather than the most a lender will approve.
Part of Our 100+ Lender Panel
The names most people recognise are residential lenders. Much of what we arrange runs through funders that do not advertise to the public. Accreditation with a lender is not an endorsement by it, and which lender suits you is decided by your file rather than by who is on this list.
Not Sure You Need a Line of Credit?
Tell us what it is for. Fifteen minutes, no credit check.What Actually Decides It
How a Line of Credit Actually Behaves
A line of credit is simple to describe and easy to misuse. Six things about how it works decide whether it saves you money or quietly costs you more than the loan you would have had instead.
Interest runs on the balance not the limit
A $100,000 limit with $30,000 drawn is charged interest on $30,000. That is the genuine advantage over a lump sum loan, and it is why a line of credit suits spending that happens in stages or unevenly.
Interest is added to what you owe
On the common secured version, interest is added to the balance each month and repayments are not required while you stay inside the limit. Draw nothing new and make no repayments, and the debt still rises every month.
Nothing brings the balance to zero
A home loan has a schedule that ends at zero. A line of credit has a limit. Unless you set your own repayments, nothing in the structure pulls the balance down, and a facility that is only ever drawn on can sit at its limit indefinitely.
The whole limit counts against you
A lender has to be satisfied you can service the facility you apply for, and other lenders will usually treat the whole limit as a commitment when you next apply. A generous limit you never use still reduces what you can borrow for the next property.
Purpose decides which rules apply
If more than half of what the facility is used for is personal, domestic or household, or it funds residential investment property, it is regulated consumer credit and Best Interests Duty applies. If it is predominantly for business it sits outside the National Credit Act and is assessed as business lending.
Separate facilities keep the tax clean
The ATO looks at how borrowed money was used. Where one facility funds both private and investment spending, the interest has to be apportioned between them. Keeping each purpose in its own facility or split is much simpler to account for.
Checked 20 September 2026. The definition of a line of credit, including interest being added to the balance and repayments not being required within the limit, is from ASIC Moneysmart, as is how an offset account reduces interest. The 50 per cent test for whether credit is regulated consumer credit is from ASIC. The apportionment of interest between private and rental use is from the Australian Taxation Office, and Best Interests Duty from ASIC Regulatory Guide 273. We are not tax advisers. Confirm your tax position with your accountant. Everything else on this page is described in the important information at the foot of the page.
The most useful fifteen minutes on a line of credit is the one where we work out whether you need it. If you do, we size the limit to what you will use. If you do not, we will say so. Tell us what it is for.
The Honest Comparison
Line of Credit or a Loan with an Offset Account?
Both give you money you can draw and repay whenever you like. The difference is what happens when you do nothing.
A line of credit
- Interest only on the balance drawn, from a limit you can reuse
- Suits income or spending that is genuinely irregular
- A separate facility makes it easy to keep one purpose apart from another
- Repayments are often not required, so nothing forces the balance down
- The whole limit counts against your borrowing capacity while it is open
A principal and interest loan with an offset
- Money in the offset reduces the balance that is charged interest
- Your savings stay available to draw whenever you need them
- Regular repayments bring the loan down whether you think about it or not
- There is no unused limit sitting on your file
- Some lenders charge for an offset through a higher rate or a package fee
If you want a buffer, you probably want an offset rather than a line of credit. A line of credit is the product people ask for and an offset is usually the one that serves them better, because it gives similar access to money, including equity released into it through a top-up, with a repayment that keeps working when life gets busy. It is not the answer people expect from a broker asked about a line of credit, but it is the one that holds up. A line of credit is the right call when income is irregular enough that fixed repayments would be a strain, or when an investor needs borrowing for different purposes kept in different facilities. The test is simple: if you would make regular repayments into it anyway, take the structure that makes them for you.
Find Out Whether an Offset Would Do the Job
Tell us what the money is for and how often you would draw on it. We will say whether a line of credit earns its place. Fifteen minutes. No credit check.The Difference
Why a Line of Credit Broker Starts by Asking Whether You Need One
Your bank can approve a line of credit. It has no reason to tell you an offset would suit you better, or that the limit you asked for is larger than you need.
We Test It Against an Offset First
Before any lender sees a file we compare the line of credit with the simpler structures that do the same job, and size the limit to what you will actually draw rather than the most a lender will approve. You choose with the comparison in front of you.
Legally On Your Side
A line of credit for personal, domestic or household purposes, or for residential investment property, is regulated consumer credit, so Best Interests Duty applies. We must act in your best interests and give priority to your interests where they conflict with ours. Those obligations have applied to mortgage brokers since 1 January 2021.
No Fee. Not Even Clawback.
We do not charge you for the comparison, the structuring or the application, on any loan type. If you discharge the loan early we wear the clawback ourselves rather than invoicing you for it, which plenty of brokers do. Lenders pay a commission on settlement, disclosed to you in writing before any work begins.
100+ Lenders That Differ Sharply Here
Whether a lender offers a secured line of credit at all, how it counts an unused limit, what it requires you to repay and how it reviews the facility all vary between lenders. The right one for an investor is rarely the right one for someone smoothing irregular income.
The Process
How a Line of Credit Comes Together
Four steps, and the first one decides whether you need a line of credit at all.
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15 minutes
Before you apply anywhere
What the facility is for, how often you would draw on it, your income and what you already owe. No documents and no credit check. You finish the call knowing whether a line of credit fits, or whether an offset or a fixed term loan would do the job better.
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You gather
The documents
A secured facility needs more than an unsecured one. We confirm exactly which parts your chosen lender wants before you chase any of them.
- Your income and identification documents
- Recent statements for existing loans and cards
- Details of every credit limit you hold, used or not
- For a secured facility, the property and what is owing on it
- If you are self-employed, recent tax returns and assessments
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We handle
Limit sizing then approval
We size the limit to what you will draw rather than the most you can get, because the whole limit counts against you. For a secured facility the lender values the property, and we manage the conditions through to approval.
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After settlement
Using it well
We will suggest a regular repayment even where the lender does not require one, and review the facility with you if your income or plans change. A line of credit that has done its job is worth reducing or closing.
Track Record
A Specialist Rather Than a Sideline
Personal and asset finance sits with Chantelle, who works in this area every day rather than treating it as a favour between mortgages.
Related Options
Other Ways to Get Access to Money
The structures people compare a line of credit with, and the ones they land on next.
Unsecured personal loans
A fixed amount repaid to zero on a set date, with nothing secured against your home.
Refinance home loan
Moving to a loan with an offset account, which often does the job of a line of credit.
Cash-out refinance
Releasing a fixed amount of equity when you already know what you need.
Investment loans
Structuring borrowing so each purpose stays in its own facility.
Cashflow loans
Business facilities for working capital, which sit outside the consumer credit rules.
Every personal loan we arrange
Back up to the full personal lending range if none of these is quite it.
Tell Us What the Limit Is For.
We will size it to what you will use, or tell you that you do not need one. It costs you nothing.Questions Answered
Line of Credit FAQs
The questions people ask us most often before they apply for a line of credit.
What is a line of credit?
A line of credit is a revolving facility with a set limit that you draw from, repay and draw again, paying interest only on the balance you have used. The common version is secured against the equity in your home, and repayments are generally not required while the balance stays inside the limit, because the interest is added to the balance instead. Unsecured versions exist with much smaller limits.
How is interest charged on a line of credit?
On the balance you have drawn, not on the limit. If the limit is $100,000 and you have used $30,000, interest is charged on $30,000. On the common secured version the interest is added to the balance each month, so if you make no repayments the debt grows even when you draw nothing new.
Do I have to make repayments on a line of credit?
On many secured facilities, not while the balance stays inside the limit. That is the feature and the risk at once. Nothing forces the balance down, so a line of credit that is only ever drawn on can sit at its limit indefinitely. We usually suggest setting a regular repayment yourself, or choosing a structure that sets one for you.
What is the difference between a line of credit and a personal loan?
A personal loan pays out a fixed amount once and is repaid on a schedule until it reaches zero. A line of credit gives you a limit to draw from repeatedly, and on the common secured version there is no repayment schedule bringing it to zero. The personal loan is the better tool when you know the amount and want the debt gone by a date. The line of credit suits spending that arrives unevenly and will be repaid unevenly. Our unsecured personal loans page covers the fixed term route.
Should I use a line of credit or an offset account?
For most people who want a flexible buffer, a principal and interest loan with an offset account does a similar job with a safer default. Money in the offset reduces the balance that is charged interest, you can still draw it whenever you need it, and the regular repayments keep bringing the loan down. Equity can be released into the offset through a top-up, where it costs little until it is spent. Some lenders charge for an offset through a higher rate or a package fee, so it is worth pricing both. A line of credit earns its place when income is genuinely irregular, or when keeping borrowing for different purposes in separate facilities matters, which it often does for investors.
Does a line of credit affect my borrowing capacity?
Yes. A lender assesses whether you can service the limit you apply for, not only what you expect to use, and other lenders will usually count the whole limit as a commitment when you next apply. A large buffer you never touch can still reduce what you can borrow elsewhere.
Can I use a line of credit for my business?
You can, but the purpose changes the rules. If more than half of what the facility is used for is personal, domestic or household, or it is used to buy or improve residential investment property, it is regulated consumer credit. If it is predominantly for business, it falls outside the National Credit Act, Best Interests Duty does not apply, and it is assessed as business lending. Our cashflow loans page covers business facilities.
Does Best Interests Duty apply, and what does Intellect Finance charge?
Yes, where the facility is regulated consumer credit. A line of credit used for personal, domestic or household purposes, or to buy or improve residential investment property, is regulated consumer credit, so brokers must act in your best interests and give priority to your interests where they conflict with ours. We charge you nothing on any loan type, and no clawback fee if you discharge early. Lenders pay a commission on settlement.
Visit Us
Penrith Based.Clients Australia-Wide.
Penrith is our head office and the one you can walk into without an appointment. We also meet clients at Parramatta and in the Sydney CBD by arrangement. Most of the process runs by phone, email and video, so we arrange lines of credit in every state.
Parramatta
Suite 23, Level 1, 181 Church St, Parramatta NSW 2150
Mortgage broker Parramatta →Ready When You Are
Talk to Us Before You Apply for a Limit.
Fifteen minutes with a personal finance specialist. We’ll tell you whether a line of credit fits, how large the limit should be, and what it would do to your borrowing capacity. If an offset account would do the job better, we’ll tell you that too. No credit check, no paperwork, no obligation. Penrith based, clients Australia-wide. Intellect Finance Pty Ltd, ACL 390611.
A line of credit for personal, domestic or household purposes, or for residential investment property, is regulated consumer credit, so Intellect Finance is legally required to act in your best interests under the Best Interests Duty in the National Consumer Credit Protection Act. A line of credit used predominantly for business purposes is not regulated consumer credit. Nothing on this page is credit assistance, legal advice or an offer of credit, and no outcome is guaranteed.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member
Important information General information only. Not credit assistance, legal advice or an offer of credit. We charge you no fee. Every caveat and source on this page is collected here. Tap to read.
General information only. The content on this page is general in nature and does not take into account your objectives, financial situation or needs. It is not credit assistance, financial advice, legal advice or tax advice, and it is not an offer of credit. You should consider whether it is appropriate for you and seek your own advice before acting on it.
Secured facilities. A secured line of credit is secured against your home. If you cannot meet your obligations the lender may take action against the property. Only borrow against your home an amount you are confident you can repay.
Revolving credit. On many secured lines of credit there is no repayment schedule bringing the balance to zero. The balance can rise through interest alone, and the interest rate is generally variable and can change.
Tax. References to the tax treatment and apportionment of interest are general information drawn from the Australian Taxation Office and are not tax advice. Your position depends on your circumstances. Confirm it with a registered tax agent before you draw on the facility.
Nothing here is a guarantee of approval. Loan approval, borrowing capacity, interest rates, loan to value ratios, valuations, credit limits, repayment requirements, review terms and eligibility are determined by individual lenders and by independent valuers, not by us. They differ between lenders and change over time. Timeframes vary with the lender and the valuer, and are not guaranteed. Any figure or timeframe on this page is indicative and is not a quote, an offer, or a prediction of your outcome.
Best Interests Duty. Credit for personal, domestic or household purposes, or to buy or improve residential investment property, including a line of credit, is regulated consumer credit under the National Consumer Credit Protection Act 2009. When providing credit assistance in relation to these products, Intellect Finance is required to act in your best interests and, where there is a conflict of interest, to give priority to your interests. These obligations have applied to mortgage brokers since 1 January 2021.
How we are paid. Intellect Finance does not charge borrowers a fee for arranging finance, and does not charge a clawback fee where a loan is discharged early. Lenders pay us a commission on settlement. The basis of that commission is disclosed to you in writing in our Credit Guide before any credit assistance is provided.
Third-party information. Where this page refers to regulatory settings, consumer guidance or lender policy, that information is sourced from the relevant authority and was correct to the best of our knowledge at the date shown on this page. Those rules change, sometimes without notice. Always confirm the current position with the issuing authority or with us before relying on it.
Found something wrong? If you believe anything on this page is inaccurate or out of date, tell us at joe@intellectfinance.com.au and we will review and correct it.
Intellect Finance Pty Ltd | Australian Credit Licence 390611 | MFAA Member | AFCA Member