Product Guide

A quick overview of Midkey (download it!)

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.

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How can I use Midkey?

Buy another property

Buy a larger home or buy a second property - or even help a family member purchase their property.

Dreams and challenges

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.

Reduce regular debt payments

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.

Why choose a Midkey?

A Midkey home loan doesn’t require regular payments which makes it a good choice when you have useable equity in your home but not enough income to unlock it.

A Midkey can help you when either:

You want to increase your home loan but traditional lenders decide you don’t have the ability to make extra payments
You want to reduce your regular loan payments and improve your monthly cashflow

Product specifications

Regular payments

  • no regular payments of interest (accumulates and occurs at the end of the loan)

  • no regular repayment of principal amounts (occurs at the end of the loan)

  • no ongoing fees

Loan amounts

Minimum: $100,000
Maximum: $5,000,000

2nd mortgage
1st mortgage

Up to 35% of the value of your property

  • up to 30% of the value of your property

  • maximum combined LVR* (1st plus Midkey loan) = 80%

  • borrower’s 1st mortgage must be a principal plus interest loan

Eligible properties

  • Landed residential properties in most Australian state capitals and major population centres**

  • Apartments, rural & commercial properties are currentlynot eligible (apartments coming soon**)

Interest rate

Simple (not compounding) interest at a margin of 325bp above theRBA cash rate, accumulated and only paid at the end of the loan

Loan use

No defined by years.
The Midkey loan is fully repayable if the borrower:

  • decides they want to repay the Midkey loan (at any time)

  • sells their property

  • dies, or

  • defaults

The Midkey loan is partially repayable if:

  • the borrower chooses to make a partial repayment (minimum $50,000)

  • it is a second mortgage, and the borrower increases the amount of their 1st mortgage loan, they must use 25% of any increase in their 1st mortgage loan to partially repay their Midkey loan

  • if the LVR (Loan to Value Ratio) is greater than 100% (ie the 1st mortgage and a Midkey loan) the borrower must make a partial repayment to reduce the LVR to below 100%

Fees at START of loan

  • an establishment fee of 1% of the loan value with a minimum of $1,500

  • valuation fees from an independent valuer, range from $330 - $2,650 (quotes required for homes over $5m); the applicant pays directly to the valuer

  • document preparation costs and out-of-pocket expenses (approx. $450)

  • registration fee (approx. $187, depending on the state jurisdiction)

  • settlement rescheduling fee (approx. $200, if there is a date change after once agreed)

  • all fees (except valuation costs) are deducted from loan proceeds at settlement

Fees & payments END of loan

  • the original (or “principal”) loan amount

  • simple interest (not compounding) that has accumulated throughout the loan period

  • the Midkey Deferral Fee, our new, innovative fee that is a proportion of any increase in your home’s value, so, for example, if your Midkey loan is 10% or 20% of your home’s current value, the Midkey Deferral Fee will be 10% or 20% of the increase in your home’s value at the time you repay (no increase, no Midkey Deferral Fee)

  • valuation fee (not in all cases) that ranges from $330 - $2,650 (quotes required for homes over $5m); the applicant pays directly to the valuer

  • discharge fee, approx. $500

Applicant type

Individuals & joint borrowers (not companies, trustees or private partnerships)

Application requirements

Midkey 1st and 2nd Mortgage Loans

  • residential and employment history

  • asset and liabilities position

  • income & expenses verification

  • 3 months of personal bank statements to verify living expenses (can be verified electronically by bankstatements.com.au )

  • onsite property valuation from a Midkey valuation firm

Midkey 2nd Mortgage Loans

  • 1st mortgage details from approved partner bank, including proof of balance

Renovations & improvements

Permitted during the loan subject to Midkey approval.
Borrowers can apply for a credit to offset Midkey’s innovative fee (that is a proportion of any increase in their home’s value)

Features not available

Redraw, account splits, offset account, portability

* A valuation discount of a minimum of 5% is typically applied to a property’s initial independent valuation.
This discount allows Midkey to provide short-term loans that are still economically viable for Midkey and its investors.

** Midkey provides Midkey loans for properties located in all state capitals and major population centres. Coming soonto ACT, NT and VIC. Midkey loans will soon be available for different property types, such as apartments. Join the Waitlist on the website and check the FAQs for updates. All applications are subject to lending and approval criteria. Fees and charges apply. Terms and conditions are available upon request. This material is for information purposes only and has been prepared without considering a borrower’s objectives, financial situation or needs. A borrower should seek independent financial advice and read the relevant disclosure documents prior to making a decision about a product. All rates and information provided in this material are correct at the time of publication and are subject to change.

Midkey’s purpose is to enable Australian homeowners to solve their financial problems and achieve their financial goals.

We got quick access to cash which didn’t impact our monthly outgoings. It’s so straightforward... it’s just a wonderful way of leveraging the biggest asset that you own.

Chris (54), Mosman

father of five, married advertising executive

By using my Midkey to pay off some of my existing mortgage, I have reduced the monthly payments by more than 50% so now I feel less constrained, freer.

Mark (37), Kellyville

father of two, married finance professional

I was asset-rich but stretched and, on my single income, I was unable to borrow enough money from traditional lenders to fund the extensive renovation this house needs. Midkey became the key to my future and gave me options otherwise not available to me.

Cheryl (48), Coogee

mother of three, divorced, banker

I can say there is no other product on the market like Midkey’s... it is a genuine innovation, and that is always welcome in our tight market.

James Gerrard

Weekend Australian (26.06.23) finance
contributor & financial planner