Learn more about how we can help you unlock your home equity. Call us today on 1300 643 539
Unlock your busy mid-life with an Australian first, Midkey.
A revolutionary new 1st or 2nd mortgage home loan.
Pay all principal and simple interest at the end of the loan. NO MONTHLY PAYMENTS.
Simply, it unlocks some of your home equity to improve your cashflow and choices.
In exchange for no monthly payments, you pay a fee at the end. This Midkey Deferral Fee is a proportion of any increase in your home’s value. The proportion is your Midkey home loan amount to your home’s value and is agreed at the start. No increase, no Midkey Deferral Fee.
A new type of home loan
$0.00
Monthly payments (principal or interest)
7.6%
Interest rate PA (simple interest)
Deferral Fee
At the end of term
Other fees apply. Please read the FAQs for details
How can I use Midkey?
Access additional debt for exciting opportunities. Manage life’s costly curveballs. Build that business. Renovate your home. Buy a new car. Pay the school fees. Pay unforeseen medical expenses.
Buy a larger home or buy a second property - or even help a family member purchase their property.
Pay off more of your home loan or pay off other debt such as car loans or credit cards, and in turn, reduce your regular monthly debt payments.
An exciting innovation for Australians
Offering responsible, mid-life borrowers a new solution in a busy and expensive phase of their life.
Convert part of your home into cash
Release some of your home’s value as cash for your dreams or challenges now, with no monthly payments.
More choices to control your future
Acquire another property, make aspirational purchases, improve cashflow, pay off some debt with no on-going fees or additional monthly payments.
Repay us at the end
Pay your principal and simple interest payments at the end of your Midkey loan.
How much can I unlock?
Add your mortgage details into our calculator to instantly see how much cash you may
be able to unlock with a Midkey
It’s a simple process
Get an estimate today
Use our calculators to see how much you can borrow and how it works. Apply online to see in minutes if you are pre-approved.
Your Midkey journey starts with a simple and instant estimation by submitting your basic information into our online application.
1. value of your home (existing or target)
2. if you are applying for a second mortgage, the remaining amount of your first mortgage home loan
3. the address of your property
Submit your application
Complete your application through our online portal. Our process requires minimal documentation and uploads. It’s easy to use and accessible anytime for you to update your documents. And when you have further questions, our Australian-based team members are ready to help you.
Unlock your Midkey
Once your uploaded documents have been reviewed by Midkey and your loan approved, you will receive an offer letter.
Easy as that. We can then move efficiently to provide your funds once you are ready.
Listen to Midkey borrowers
explain why they got a Midkey
Meet The Unlockers:
Frequently asked questions
Take a look at the most commonly asked questions.
A Midkey “No Monthly Payments” Home Loan (called a “Midkey”) is different from any other kind of home loan or mortgage in Australia. Our borrowers do not make any regular, monthly payments. Instead, at the end of the loan, they pay the loan amount and simple interest (not compound interest), plus a new innovative Midkey Deferral Fee. There is no fixed timeframe for repayment. However, you must repay when you sell your home, or if you die, or at other specific events agreed upfront. The Midkey Deferral Fee is a proportion of any increase in your home’s value so, for example, if at the start of your loan your Midkey home loan is 10% of your home’s value, then your Midkey Deferral Fee will be 10% of any increase in your property’s value at the end of the loan, if your Midkey home loan is 20% of your home’s value, your Midkey Deferral Fee will be 20% of any increase in its value at the end of the loan. If the value of your home does not increase, you do not have to pay a Midkey Deferral Fee.
We provide first and second mortgages - if you already have a mortgage over your home your Midkey home loan can be secured by a second mortgage.
To qualify for a Midkey “No Monthly Payments” Home Loan:
- your property, or the one you intend to buy, needs to be a non-strata residence located in a state capital or a major population centre. We are coming to NT and VIC soon (join our Waitlist below);
- you need to have at least 20% useable home equity (the amount by which your home’s value exceeds the amount of your existing home loan).
Example: Let’s say Emma’s house is currently valued at $2m, and she owes $1,600,000 on her bank first mortgage. This means Emma has $400,000 of useable home equity (ie 20% of her home’s value). She would only be eligible for a Midkey home loan if she agreed to use the Midkey proceeds to pay off her bank first mortgage. However, if she has already paid off more of her bank first mortgage owing $1,500,000, her useable home equity is now $500,000 (25% of her home’s value). In this scenario, Midkey may be able to lend her $100,000.
- if you would like your Midkey home loan secured by a second mortgage, your first mortgage home loan needs to be a traditional "principal plus interest" home loan. Also, Midkey requires a priority agreement with your first mortgage home loan provider. Midkey will work with you to arrange this priority agreement, or you are welcome to refinance your first mortgage home loan with a Midkey Partner Lender where Midkey already has a priority agreement.
- you need to be an Australian citizen over the age of 18; and
- your application needs to be approved by us.
We will soon provide Midkey "no monthly payments" home loans for properties located in more Australian cities and for different property types, like apartments and other strata residences. You are welcome to join our Waitlist so we can let you know when we start providing Midkey home loans in additional cities and for different property types.
Click here to join our Waitlist
A Midkey loan can be a minimum of:
- $100,000
- up to 35% of your home’s current value for a first mortgage (i.e., you don’t have or plan to have a traditional mortgage), or
- Up to 30% of your home’s current value for a second mortgage (you have or will have a traditional mortgage on your home).
In either situation, the Loan to Value Ratio for your property cannot exceed 80% (including the first mortgage if your Midkey loan is a second mortgage).
At the end of a Midkey "no monthly payments" home loan, you will pay Midkey:
- the original (or “principal”) loan amount.
- the simple interest that has accumulated. Simple interest does not compound, so, for example, the interest that has accumulated this year is not charged interest next year. The simple interest rate is roughly 1% to 2% higher than a traditional home loan. Midkey charges variable simple interest that is a 3.25% premium to the RBA Cash Rate
- the Midkey Deferral Fee, our new, innovative fee is a proportion of any increase in your home’s value so, for example, if your loan is 10% or 20% of your home’s current value, the Midkey Deferral Fee will be 10% or 20% of the increase in its value at the time you repay (no increase, no Midkey Deferral Fee).
- Incidental fees that are charged at cost – a discharge fee (approximately $500) and, in some instances, a valuation fee.
At the beginning of your Midkey loan, you must pay an establishment fee 1.5% of the loan amount with a minimum of $3,000, valuation fee (see FAQ), document preparation costs and out-of-pocket expenses (approx. $450), registration fee (approx. $187 depending on the State), settlement rescheduling fee (approx. $200, if there is a change after once agreed). You can choose to have these fees (except the valuation fee) deducted from the amount of your Midkey loan.
The main differences are:
- Timing of payments: A traditional home loan typically requires principal and interest payments on a monthly basis. In contrast, with a Midkey loan, there are no regular, monthly payments, as they are paid at the end of the loan.
- Assessment flexibility: Traditional lenders are more sensitive to your ability to service their debt. They are required to assess your income, expenses, and assets to determine your ability to make regular payments. Although Midkey assesses similar criteria, we don’t need to determine your ability to make regular, monthly payments on our loans.
- Unlocking home equity: Due to our assessment flexibility, even if you can’t meet the serviceability requirements of a traditional lender, you may still be able to unlock the useable equity in your home with a Midkey loan to increase your borrowing capacity.
- Reduce your monthly debt payments: If you want to reduce your monthly debt payments, you can use a Midkey loan to decrease the amount of your traditional home loan.
- Simple interest: A Midkey home loan charges simple interest (not compound interest). Simple interest does not compound, i.e. the interest that is accumulated this year is not charged interest next year. The simple interest rate is roughly 1% to 2% higher than a traditional home loan.
- Repayment date: A traditional home loan typically specifies a date by which you must repay your loan, whereas a Midkey doesn’t. A Midkey loan is only repayable on certain events, like if you sell your property or you decide you want to repay.
- Innovative fee: It has a new, innovative Midkey Deferral Fee that is a proportion of any increase in your home’s value, where the agreed proportion is your Midkey loan amount to your home’s value at the start of your loan. For example, if your Midkey loan is 10% of your home’s value at the start of the loan, your Midkey Deferral Fee at the end of the loan will be 10% of any increase in your property's value; if your Midkey loan at the start is 20% of your home’s value, then your fee will be 20% of any increase in its value at the end of the loan. If your property does not go up in value or, in fact it decreases, you will not pay the Midkey Deferral Fee.
Note: There are other differences, such as the amount of the establishment fee, transaction-related costs (eg. valuation fees, documentation preparation costs and out-of-pocket expenses), a settlement rescheduling fee, and eligibility criteria.
You do. In terms of property ownership, and your use of your home, a Midkey “No Monthly Payments” Home Loan operates in a similar way to a traditional home loan.
No. Midkey is not a bank. We specialise in Midkey “No Monthly Payments” Home Loans for homeowners and would-be homeowners. We don’t offer bank accounts, credit cards or other products that banks typically do.
Think of the Midkey Deferral Fee as "the fee you pay for the benefit of deferring all your principal and interest payments to the end of your Midkey home loan”. Importantly, you are only charged a Midkey Deferral Fee if your property increases in value.
- The Midkey Deferral Fee is a proportion of any increase in your home’s value during the term of your Midkey "No Monthly Payments" Home Loan. The proportion is calculated by dividing your Midkey home loan amount by your home’s value, and the proportion is agreed at the start of your Midkey loan. The more your property increases in value, the larger the Midkey Deferral Fee will be at the end of your home loan.
- For example, if your Midkey home loan is 10% of your home’s value at the start of the loan, your Midkey Deferral Fee at the end of the loan will be 10% of any increase in your property's value; if your Midkey home loan at the start is 20% of your home’s value, then your Midkey Deferral Fee will be 20% of any increase in its value at the end of the loan. If your property’s value does not increase (or it decreases) during the term of your Midkey home loan, you won’t need to pay us a Midkey Deferral Fee. No property value increase means no Midkey Deferral Fee. But, for your sake and ours, we hope the value of your property appreciates through the roof, so we can all celebrate at the end. We love a win/win arrangement, and we hope you do too.
Calculate how much you can unlock here.