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Frequently asked questions
Take a look at the most commonly
asked questions. We’ll help you get the answers you need.
Who is Midkey?
Midkey is Australia's first "No Monthly Payments" loan provider for people in their mid-life, empowering the owners of residential real estate to unlock a portion of the equity in their home. Midkey was established as an asset management business in 2021 by Richard Young and Scott Collison, who discovered that many of their friends were increasingly unable to qualify with banks for required loans, despite having significant home equity. They believed they had a new and innovative solution to this problem that worked within Australia’s regulated lending requirements.
Click here to learn more about our founders.
Is Midkey a bank?
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.
How is a Midkey “No Monthly Payments” loan different to a typical home 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 home 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 our 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 home 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 home 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 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.
• Repayment date: A traditional home loan typically specifies a date by which you must repay your loan, whereas a Midkey doesn’t. A Midkey home 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 home loan amount to your home’s value at the start of your 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 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.
Where does Midkey’s funding come from?
Midkey’s investors are long term investors who are comfortable providing accruing interest loans where the loan term is not a fixed period.
Can I trust you?
Yes, and here are some good reasons why:
- We are an Australian Credit Representative (539174) of Allied Financial Consulting Pty Ltd, which holds Australian Credit Licence 393845 issued by ASIC. Midkey Funds Management Pty Ltd is also a Corporate Authorised Representative (CAR No. 1297360) of Sandford Capital Pty Limited (ABN 82 600 590 887) (AFSL 461981).
- We use bank level security and encryption across our digital platform to protect you and us from cyber threats.
- Our management team members have strong track records holding leadership and strategy roles in investment banking, asset management, healthcare, technology, and media start-ups as well as ASX and Asia listed companies, including board member positions.
Click here to learn more about our founders.
What is a Midkey “No Monthly Payments” Loan?
A Midkey “No Monthly Payments” Loan (called a “Midkey”) is different from any other kind of home loan or mortgage in Australia. Our borrower's do not make any regular, monthly payments instead, at the end of the loan you 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 your loan must be repaid when you sell your home, when you die, or at other specific events agreed upon upfront.
The Midkey Deferral Fee is a proportion of any increase in your home’s value so, for example, if at the start your Midkey 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 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 loan can be secured by a second mortgage.
Where does Midkey offer its loans?
Your property, or the one you intend to buy, needs to be a house or a non-strata residence located in most state capitals and major population centres. Coming soon to NT and VIC.
We will soon provide Midkey loans 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 loans in additional cities and for different property types.
Click here to join our Waitlist.
How do I qualify for a Midkey “No Monthly Payments” Loan?
To qualify for a Midkey “No Monthly Payments” Loan:
- your property, or the one you intend to buy, needs to be an owner-occupied house or a landed residence located in most state capitals and major population centres (we are coming to NT and VIC soon);
- 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 (i.e. 20% of her home’s value). She would only be eligible for a Midkey if she agreed to use the Midkey proceeds to pay off her bank first mortgage. However, if Emma has already paid off more of her bank first mortgage and owes $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 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 loans for properties located in more Australian cities and for different property types, like apartments. You are welcome to join our Waitlist so we can let you know when we start providing Midkey loans in additional cities and for different property types.
Click here to join our Waitlist.
What is a responsible borrower?
A responsible borrower is one who has at least 20% useable equity in their home and, after taking out a Midkey, will continue to meet all their other obligations.
A second mortgage responsible borrower is one who has at least 20% useable equity in their home and, after taking out a Midkey, will continue to meet all their other obligations. A first mortgage responsible borrower is one who has at least 65% useable equity in their home and, after taking out a Midkey, will continue to meet all their other obligations.
How much can I borrow using a Midkey “No Monthly Payments”Loan?
A Midkey "No Monthly Payments" 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 ("LVR") for your property cannot exceed 80% (including the first mortgage if your Midkey loan is a second mortgage).
What is the loan term for a Midkey “No Monthly Payments” Loan?
One of the special features of a Midkey “No Monthly Payments” Loan is that you won't be given a specified calendar date by which you must repay your Midkey loan. This is because a Midkey loan is only fully repayable if certain events occur, like:
- if you sell your property
- if you decide you want to repay your Midkey loan
- if you die; or
- if you default on specific terms in your contract with Midkey.
Your Midkey loan will be partially repayable if:
- your Midkey loan is secured by a second mortgage, and (subject to our approval) you increase the amount of your first mortgage home loan. If this occurs, you must use 25% of any increase in your first mortgage loan balance to partially repay your Midkey loan;
- at any time during your Midkey loan, the Loan to Value Ratio that applies to your property is greater than 100% (taking into account your first mortgage home loan and your Midkey loan). If this occurs, you must make a partial repayment of your Midkey loan that brings the Loan to Value Ratio below 100%; or
- if you choose to make a partial repayment (see the FAQ on partial repayments)
When can I repay my Midkey loan?
You have the option to partially or fully repay at any time. Otherwise, you will need to pay at the mandatory payment events described in the question above.
What do I pay at the end of a Midkey “No Monthly Payments” Loan?
At the end of a Midkey loan, you pay us:
- the original (or "principal") loan amount.
- simple interest (not compounding) that has accumulated throughout the loan period. The 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 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
At the beginning of your Midkey loan, you will be charged*;
- an establishment fee of 1.5% of the loan value with a minimum of $3,000
- 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).
*You can choose to have these fees deducted from the amount of your Midkey loan, excluding the valuation fee.
Can I make partial repayments or redraws?
You can make partial repayments of your Midkey home loan subject to a minimum of $50,000. This will require a new independent valuation of your property (to be paid at your expense). You will also pay a partial repayment fee ($200) each time.
There is no redraw facility attached to your Midkey home loan where you have the ability to make extra payments and then draw out that money however, at any time, you can fully repay your Midkey home loan and apply for a new one.
What fees are payable for a Midkey “No Monthly Payments”Loan?
At the beginning of your Midkey loan, you will be charged*;
- an establishment fee of 1.5% of the loan value with a minimum of $3,000
- a valuation fee from an independent valuer that 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).
*You can choose to have these fees deducted from the amount of your Midkey loan, excluding the valuation fee.
At the end of the loan, you pay Midkey:
- the original (or "principal" ) loan amount.
- simple interest (not compounding) accumulated throughout the loan period. 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.
- a new, innovative “Midkey Deferral Fee” that is a proportion of any increase in the home’s value, and the proportion is the Midkey loan amount to the home’s value at the start of the loan (for example, if your Midkey loan is 10%of your home value, your fee will be 10% of any increase in your home’s value, if your Midkey loan is 20% then your fee will be 20% of any increase).
- a valuation fee (not in all cases) from an independent valuer, that ranges from $330 - $2,650 (quotes required for homes over $5m); the applicant pays directly to the valuer.
- a discharge fee, approx. $500
What interest rate will I be charged for my Midkey loan, and will the interest rate change?
A Midkey "No Monthly Payments" Loan charges simple interest (not compound interest). Simple interest does not compound, i.e. the interest that has accumulated this year is not charged interest next year. As a rough guide, the rate will typically be 1% to 2% higher than the interest rate that is charged for a traditional home loan. However, it will usually be lower than the compound interest rate that is typically charged for a standard reverse mortgage and will be significantly lower than the interest rate that usually applies to regular second mortgage loans.
The interest rate for a Midkey loan is currently 7.6%, and it is set as a margin to the Reserve Bank of Australia’s cash rate. Therefore, the rate will increase or decrease in line with any changes to the RBA cash rate.
How do you calculate the interest and do I pay interest for every year that I have the loan?
Midkey’s interest rate is set at a margin of the RBA cash rate so it can increase and decrease. You’ll be alerted of those movements during the life of your loan. Midkey will calculate the interest daily and this interest will accumulate but not be charged throughout that entire term. Let’s say we lend you $200,000, and our annual interest rate is currently 7.6%. To calculate your annual interest, we multiply $200,000 by 7.6%, which is $15,200. Because the Midkey loan charges simple interest, the interest that accumulates each year will remain the same throughout the life of your loan, i.e. it will be $15,200 each year (assuming that the interest rate remains the same and you don’t make any partial repayments).
What happens when the value of my home increases or decreases?
The Midkey Deferral Fee is a proportion of any increase in your home’s value so, for example, if your Midkey "No Monthly Payments" 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 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.
What is a Midkey Deferral Fee?
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 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" Loan. The proportion is calculated by dividing your Midkey 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 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 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 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.
The Midkey Deferral Fee is a proportion of any increase in my home’s value. Will that proportion change?
Only if you make a partial repayment/s, then the proportion will decrease. Otherwise, the proportion is agreed at the beginning and will not change during the loan term.
When do I need to have my home valued, and who does this?
Your home must be valued by an independent valuer, at a cost to you, to determine the value of your home. This is required at the start of the home loan; if you make a partial repayment; when you repay the loan; and (if relevant) at the beginning and end of a renovation. Midkey will connect you to an independent valuer from the Midkey panel of valuers. Where possible, Midkey will use the same independent valuer for these onsite valuations throughout the term of your loan.
Where your Midkey "No Monthly Payments" Loan is a second mortgage, we will attempt to use a valuer who is on both the Midkey valuer panel as well as the valuer panel of your first mortgage bank.
Who pays for any valuations?
You pay for any valuations that are required for your Midkey "No Monthly Payments" Loan. Valuations must be made by an independent valuer who is on Midkey’s valuation panel. Midkey can help you to arrange this.
A valuation fee ranges from $330 - $2,650 (quotes required for homes over $5m); you pay the valuer directly.
Why do you apply a discount to my home valuation?
Midkey will typically apply a minimum of 5% discount to the initial independent valuation it receives for your property. We do this because the economics of the Midkey "No Monthly Payments" Loan are not structured for short-term borrowers however, Midkey would still like to help short-term borrowers. The 5% initial valuation discount allows Midkey to provide short-term loans that are still economically viable for Midkey and its investors.
If I want to secure my Midkey loan with a second mortgage, do I need to refinance my first mortgage home loan?
This depends on whether Midkey can arrange a "priority agreement" with your first mortgage lender. To date Midkey has been able to arrange priority agreements with almost all banks that it has engaged with. If in the rare case Midkey cannot arrange a priority agreement with your first mortgage lender, Midkey would encourage you to refinance your first mortgage with a Midkey Partner Lender that we have a pre-existing priority agreement with.
What can I use the money for?
In most circumstances, there will be minimal restrictions on how you use your Midkey "No Monthly Payments" Loan proceeds. However, you must use your Midkey loan sensibly. In cases where Midkey feels it is in your best interest to use all or part of your Midkey loan to repay some of your other debt, Midkey may restrict your loan use to this purpose.
The scenarios on the Why Midkey page of this website are for illustrative purposes only.
Can I do renovations and improvements on my home?
Yes, you can renovate and improve your home during your Midkey loan period. You can also apply for an "Improvement Credit" to offset the innovative Midkey Deferral Fee which is a proportion of any increase in your home’s value.
If I have a Midkey “No Monthly Payments” Loan, who owns my home?
You do. In terms of property ownership and your use of your home, a Midkey “No Monthly Payments” Loan operates in a similar way to a traditional home loan.
Can I get a Midkey loan if I have lost my job or my income has decreased?
Unlike a traditional loan, a Midkey "No Monthly Payments" Loan does not require regular principal and interest payments, so we can be more flexible when assessing your suitability for a home loan.
Should I seek legal or financial advice?
Midkey recommends that you seek both legal and financial advice before agreeing to a Midkey "No Monthly Payments" Loan.
What information do I need to apply for a Midkey loan?
To apply for conditional approval*, Midkey will need:
- the estimated value of your home
- the address of your home
- if you are applying for a second mortgage, Midkey will need the remaining limit of your existing first mortgage home loan (excluding any offsets but including redraw facilities)
- the personal and financial details for you (and any other borrowers)
- to do a credit check on you (and any other borrowers)
- to do an identity check on you (and any other borrowers), and
- to review your bank statements (and any other borrowers’ bank statements).
To receive unconditional* approval, we will need:
a. an independent valuation of your home (we will help you arrange this), and
b. a copy of your first mortgage home loan documents (if applicable).
*Conditional approval means your loan has been assessed and approved “in principle” however, more information may be required. Unconditional approval means your application has been fully approved, and a letter of offer from Midkey will soon follow for you to sign.
What are the potential default events for a Midkey loan?
Although a Midkey "No Monthly Payments" Loan does not require regular, monthly payments, like traditional home loans, it is still possible to default on your loan. Some examples of potential default events are:
• if you increase the loan amount of your first mortgage home loan without Midkey's prior written approval.
• if your Midkey loan is a second mortgage and you default on your first mortgage home loan.
• if the use of your property changes from your principal place of residence without Midkey's consent.
• if the amount of your Midkey loan (plus your first mortgage home loan – if any) is greater than the value of your home. If this happens, Midkey will ask you to make a payment sufficient to reduce the amount of your loans to below the value of your home. If you don't make this payment, you will default.
• if you undertake illegal renovations and improvements on your home.
• if you are bankrupt or insolvent.
• if you don't maintain adequate property insurance.
• if you fail to pay all rates, taxes, and other expenses in relation to the property.
• if you don’t maintain the property in a good state of repair.
If the LVR is greater than 100% (i.e., the 1st mortgage and a Midkey loan), the borrower must make a partial repayment to reduce the LVR to below 100%. We note that despite this payment, there is a no negative equity guarantee, which means you (or your estate) will never owe more than the property is worth when it is sold.
Other default conditions can be found in your Midkey loan documents.
Will Midkey do a credit check and check my financial details?
Yes, Midkey will do a credit check. Midkey will ask you to provide your financial details and check your bank statements during your loan application.
Is Midkey licensed?
Yes, Midkey Funds Management Pty Ltd is a Corporate Authorised Representative (CAR No. 1297360) of Sandford Capital Pty Limited (ABN 82 600 590 887) (AFSL 461981).
Midkey Funds Management Pty Ltd is an Australian Credit Representative (539174) of Allied Financial Consulting Pty Ltd, which holds Australian Credit Licence 393845 issued by ASIC.
What is the difference between simple and compound interest?
The difference between simple interest and compound interest is how the interest accumulates.
With compound interest, every month, the interest owing on your loan is added to the principal balance of your home loan. This means that, every month, the amount of interest you must pay the next month, increases. It also means that, every month, the amount of your loan increases.
In contrast, with simple interest, the amount of interest you are charged each month remains the same. Plus, the amount of your loan doesn’t increase each month. It also remains the same. This is because simple interest isn’t added to the principal balance of your loan each month. It’s only charged on the original principal amount of your loan, so the amount of interest you pay (and the amount of your loan) doesn’t increase each month.
Simple interest works in your favour when you borrow money. As a borrower, simple interest is better because you're not paying interest on interest.
What is a second mortgage?
If you have a first mortgage, you can take out a second mortgage on the same property. If you do this, it means you are borrowing money for a second time, using the same asset (your property) as security for that second loan. If you can't repay your loans and are forced to sell your property, the first lender gets paid out first.
How is a Midkey “No Monthly Payments” Loan different to a traditional reverse mortgage?
What is a reverse mortgage?
Like a Midkey “No Monthly Payments” Loan, a traditional reverse mortgage is a home loan where all principal and interest is only paid at the end of the loan, and the loan term is defined around events, rather than specific time periods.
What are the differences between a traditional reverse mortgage and a Midkey “No Monthly Payments” Loan?
•Traditional reverse mortgages are only available to older borrowers, however, a Midkey “No Monthly Payments” Loan is available to borrowers of ALL ages, for the first time in Australia.
•Traditional reverse mortgages are only offered in Australia as a first mortgage, whereas a Midkey loan is offered as either a first mortgage or a second mortgage. Where the Midkey loan is secured by a first mortgage, its maximum Loan to Value Ratio is higher than a traditional reverse mortgage up to the age that a borrower is over 75.
• Traditional reverse mortgages normally charge “compound interest”, whereas Midkey charges only simple interest. Also, a reverse mortgage charges 1% to 2% higher interest rates than a Midkey loan.
• Midkey loans have 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 home loan is 10% of your home value, your Midkey Deferral Fee will be 10% of any increase in your home's value, if your Midkey loan is 20% then your Midkey Deferral Fee will be 20% of any increase). No increase, no Midkey Deferral Fee.
The Midkey No Monthly Payments Loan is regulated as a reverse mortgage. However, ASIC has provided the Midkey loan exemptions to some of the reverse mortgage regulations.
How is a Midkey “No Monthly Payments” Loan different to “shared equity”?
In basic terms, a shared equity scheme is when the government or another party pays a proportion of the purchase price of a property in exchange for an equivalent ownership share of the property.
In Australia, shared equity schemes are typically only available via government schemes, and generally, they are only provided for social impact benefits.
Midkey doesn’t operate a shared equity scheme.
If I need to increase my home loan, what advantages do I get from a Midkey loan compared to a typical home loan refinance?
If you wish to increase your borrowing capacity, it is becoming increasingly difficult to get approval for a traditional home loan, particularly if the traditional lender believes that you won’t be able to service the additional debt. A Midkey "No Monthly Payments" Loan does not require monthly payments so, unlike traditional home loans, it allows you to unlock some of your home's usable equity when traditional home loans can’t. This will give you the additional capital you need to purchase another property, pay off debt or seize an opportunity you otherwise could not.
Does a Midkey loan contain a no-negative equity guarantee?
Yes, the Midkey loan contains a no-negative equity guarantee. This protects you from owing more on your Midkey loan than your home is worth. The no-negative equity guarantee puts a limit on the amount owed.
What long-term and future needs and expenses should I consider before getting a Midkey loan?
When considering a Midkey loan, you should think carefully about:
• Whether a Midkey loan will impact your eligibility for Centrelink payments.
• The impact a Midkey loan will have on your ability to pay any long-term and future costs. These long-term costs could include (where relevant) any costs associated with ageing (e.g. medical expenses, aged care accommodation or in-home care services).
• Whether you want to leave equity in your property to your estate.
We’d recommend you obtain independent legal and financial advice about these matters. We’d also recommend you discuss them with anyone who may be impacted by your decision to get a Midkey loan, including your family members, and where relevant, beneficiaries.
All the above considerations are important. We’d like to discuss them with you. Please contact us.
Does a Midkey loan contain a tenancy protection provision?
A Midkey loan does not contain a tenancy protection provision and will affect the rights of other people living in your property.
Suppose your Midkey loan needs to be repaid from the sale of your property. In that case, other people living in your property who are not borrowers (including your spouse, partner, other family members, or tenants) will need to move out and live elsewhere. For example, if you need to move into aged care accommodation, you may need to sell your property, and this will impact the ability of other people to continue living in your property.
We’d recommend you obtain independent legal and financial advice about these matters. We’d also recommend you discuss them with people living in your property who may be impacted by your decision to get a Midkey loan such as your family members, any beneficiaries, tenants, etc.
All the above considerations are important. We’d like to discuss them with you. Please contact us.