Protected Equity Loan

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– A protected equity loan allows an SMSF to buy a portfolio of leading shares with capital protection. It is a geared investment and while the exposure to the market is magnified, the capital protection limits losses.

Equity is the amount your property is currently worth, minus the amount of any existing mortgage on your property. You receive the money from a home equity loan as a lump sum. A home equity loan usually has a fixed interest rate-one that will not change. If you cannot pay back the HEL, the lender could foreclose on your home.

Unlike a traditional protected equity loan, there is no netting of gains and losses of stocks. At maturity you have the ability to walk away from stocks that fall in value, resulting in a higher gain on your sharemarket investment*.

Equity stripping – the process of reducing the equity value of a real estate asset – is one of the oldest asset-protection strategies. essentially, it entails encumbering a property with debt. The Westpac Protected Equity Loan is a geared investment.

Home Equity Loans and Credit Lines | Consumer Information – With a home equity loan, the lender advances you the total loan amount upfront, while a home equity credit line provides a source of funds that you can draw on as needed. When considering a home equity loan or credit line, shop around and compare loan plans offered by banks, savings and loans, credit unions, and mortgage companies.

What's the best home equity loan for you? The line. variable rates protect lenders from inflation, which allows them to offer a lower start rate.

Protected equity, or capital-protected loans, are used by investors to buy shares without risking losses. In April 2003, the Treasurer confirmed the capital protection component of the interest payments on such loans used to buy shares, managed funds and stapled securities would not be tax deductible.

Equity stripping – the process of reducing the equity value of a real estate asset – is one of the oldest asset-protection strategies. Essentially, it entails encumbering a property with debt.

Commercial Bridge Loan Rates What Are commercial bridge loans? Benefits, Risks, Fees. – Commercial bridge loans, because of the nature of the loan has extremely varied term structures based on the particular loan. interest rates for commercial bridge loans are usually based on the six-month LIBOR index, plus a spread of about 4.5-5.5 points, but this varies based on the loan term structure. These loans are usually interest-only.

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