The amortized loan
One advance, repaid in fixed instalments covering principal and interest, until it ends on a known date. Discipline is built into the product: if you pay, the debt falls.
The secured line
Revolving credit backed by your property’s value. You draw, repay, redraw. The minimum payment often covers interest only: the debt can sit unchanged for years.
The rate and its nature
An amortized loan can be fixed or variable; a line is almost always variable, tied to the lender’s prime rate with no contractual ceiling. Predictability is not comparable.
Combined products
Some lenders offer a single facility pairing an amortized portion with a line, the latter growing as the former is repaid. Convenient, but it can tie all your credit to one lender and complicate a move.
What it changes on title
A secured line is registered against the property, often for more than you actually use. That registration can hinder a refinance or a lender switch, and must be discharged on sale.
Use determines the right product
A purchase is financed with an amortized loan. Staged renovations or a one-off cash need justify a line. Funding day-to-day spending on your home’s value turns temporary debt into permanent debt.
No rate, price, or recommendation on this page. Amounts and limits change: verify them with official sources before deciding.