Just thought some might find this intresting.
We have paid for our land and have used the equity from that to setup an equity manager account. Basically it is a bit like having a bank account that lets you tap into the equity you have in your property.
To me it looks like I have a large overdraft facility but at more normal (mortgate type) rates. This means that provided I don't go beyond the agreed maximum, I have a lot of flexibility for repayments. I can pay back just the intrest or intrest and a chunk of extra cash as suits my circumstances. I can change this anytime I want to. If the car blows up, I can use it as a contingency fund.
If I get sick or unemployed, (providing I have paid back some money), I can just stop paying for a while - the debt will grow however. If I need to claim centrelink payments, I think it is classed as a debt and not an asset (unlike an offset account which is considered an asset).
This isn't for everyone because you need to have some equity to start with, but for those that have it, I recommend investigating it. I know it has taken a load off of my mind. Also consder taking out a bit more than you will need since you pay no extra (you only pay intrest for the amount you draw) and it gives you a starting buffer. From memory, fee is about $10 per month and current intrest rate is 7.57%, not bad for peace of mind.
Hope this helps someone and please post if it does.
3xb