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Equity Finance Mortgage EFM

Thu, 2008-04-24 20:01 — Broker

Equity Finance Mortgage (EFM)®

Now there is a new home loan available that can help you reduce your monthly home loan repayments or even purchase a more expensive property than you may otherwise be able to afford. An EFM® works in conjunction with a traditional home loan. Together they let you move some of the expense of a traditional home loan to later when you eventually sell your property.

Here’s how: An EFM allows you to borrow up to 20% of a property’s value. There is no annual percentage rate applicable to an EFM loan unless you are in default. You are not required to make any regular monthly loan repayments throughout the term of the EFM loan. Instead, when you sell the property or repay the EFM for some other reason, you repay the EFM amount you originally borrowed plus up to a 40% share of any increase in the value of the property. And while nobody likes to talk about property values decreasing, if this does happen when you have an EFM and you are selling your property, you may not have to repay the full EFM loan amount - a feature unique to an EFM.

Fees, charges, terms, conditions and lending criteria apply. We recommended you read the EFM Product Disclosure Document available from one of our accredited lenders. ® Equity Finance Mortgage (EFM) and EFM are registered trade marks of ARES Capital Management Pty Limited ABN 93 113 861 046.




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