Equity loan questions

Hey guys,
I have a few questions in regards to taking out and equity lines. I have taken one years ago but that was put to use straight away to help finance my current PPOR purchase.

Just wondering what happens to an equity loan in case property prices goes down? Does that change anything?
Also how long can one have an equity line without making use of it and does it cost anything to have one setup and not use it at all ?

Cheers

 

Nope. And that’s exactly the reason why you take them even if you don’t need them

I’ve also been paranoid about “margin calls” but many brokers here have assured me this is highly unlikely. There are precedents where they have “taken” back unused funds but none where they have asked you to pay back used funds. So if the economy goes to hell and you’re getting skittish just transfer it into another account.

Brokers correct me if I’m wrong.

 

If a equity line like a LOC it could be cancelled if values reduce. Speak to a broker about a term loan