A revolving line of credit is a different kind of loan rather than a feature and is sometimes referred to as a salary loan. It is essentially a giant overdraft where money paid in can be withdrawn again up to the original amount borrowed. If used properly, it can function as several new loans without the borrower having to take out new loans. A revolving line of credit is best for those people who want to use the facility several times, buying a house, then shares or a new car with the same loan. Technically, a revolving line is interest only. But most people make principle and interest repayments each month so they can redraw the money up to the original loan limit when they need the funds. Revolving lines of credit often have higher interest rates than ordinary variable loans and can be a trap for those who aren't good at budgeting. If you want the flexibility but would prefer the safety of set monthly repayments and a mortgage that is slowly being paid off, a standard variable loan with redraw or mortgage offset would suit you better.