Super Finance > Home Loans Melbourne > Equity Finance Mortgage

The Award Winning* Equity Finance Mortgage 

An Equity Finance Mortgage is a home loan product that can help you:

• Reduce the upfront and ongoing costs of purchasing a new property

• Reduce your current monthly mortgage repayments

• Increase your purchasing capacity by 20% or more. 

 *Money Magazine  

 

How does an EFM work for borrowers?  

 

An EFM works alongside your traditional home loan, deferring a percentage of your expenses until you decide to sell the property (which could be up to 25 years later).

 

• Use your EFM to borrow up to 20% of your property's value.
• Use these funds to reduce the amount of your regular mortgage, or increase your purchasing power.
• Make no monthly interest rate repayments for the life of the EFM loan.  

 

Is an EFM right for me?

 

An Equity Finance Mortgage suits existing property owners and new buyers in a range of circumstances, including if you:

 

• Are struggling to maintain your existing loan repayments.

• Want to free up cash for other investment purposes (where returns might be greater).

• Want to increase your purchasing power.

• Are looking to lower your mortgage repayments.

 

When you decide to sell, you simply repay the EFM amount borrowed, together with a percentage share of any increase in the value of the property (normally twice the percentage borrowed).

 

For example, if you borrow 20% of the property value, the maximum percentage share payable will be 40%. If your property value has fallen in value at sale, and you realise a capital loss, the EFM lender will – contingent on some conditions – share up to 20% on the realised loss on your property.

 

Using an EFM to reduce mortgage repayments Using an EFM to reduce your purchase cost Using an EFM to increase purchasing power.

 

For more information – or to apply for an EFM loan – contact Super Finance today.