Unlock Equity Without Being Forced to Sell the Home You Love: A Guide to Equity Release in Australia

If you cannot secure new personal funding from the bank, you can consider utilising an equity release loan to access the wealth stored in your home for use in important financial decisions.

A home equity loan can give you financial breathing room in a phase of life when cash flow is tight, even if you have an existing mortgage. 

You can take more control of your wealth with a solution like a Midkey no monthly payments loan that is fundamentally changing the way Australian homeowners think about home equity release. 

It is not a quick fix, but homeowners who have built up property equity can access cash now without having to sell, while reducing the stress of debt repayments and without major lifestyle sacrifices.

Keep reading to discover what home equity release is, how you can tap into it and why asset-rich but cash-poor Aussies are turning to a Midkey loan to get more from what they already own.

What is equity release and why might I need it?

If you are like many mid-life Australians, you have responsibly managed years of mortgage repayments while watching your property’s value grow. 

Broadly speaking, an equity release loan allows you to convert some of your asset’s value into usable funds, rather than it just sitting idle and not benefitting your current financial situation.

According to the latest census data, around 35 per cent of Australian households have a mortgage – equating to approximately 3.3 million homes. Alot of these people also have significant equity in their homes.

Yet, many financially astute people hesitate to do anything with their excess home equity. 

Your reasoning might be because you are worried about additional monthly mortgage repayments or losing control of your home, or think there are no options available for your circumstances.

That is where a Midkey no monthly payments loan can help you.

Different ways to release equity from your home

There are several ways to access the wealth you have accumulated in your home. 

Reverse mortgages, traditional home loans, bridging finance or other unregulated finance methods, can allow you to borrow against the value of your property. 

They all come with their own set of considerations, whether it is minimum age requirements, salary or income thresholds, varying accruable interest rates, as well as repayment deadlines – and a Midkey no monthly payments loan is no exception. 

So, when deciding on the right product for you, it is important to weigh up your situation and seek professional advice.

Below is general information you might find handy about your different options.

As illustrated above, a Midkey no monthly payments loan has a unique set of benefits that have not been seen in Australia until the model was launched in 2023.

You can use a Midkey loan for many reasons, like reducing your current home loan, credit card, or tax debt repayments to lower your monthly outgoings – keeping more of your income in your pocket every month. 

A Midkey is a modern and innovative lending solution you can use to make your hard-earned home equity work harder for you. You can use it to:

• Fund renovations that improve lifestyle or boost your home’s future value
• Help your children buy their first home
• Fund education, such as private school fees
• Start or fund a business, or bridge the gap during a career change
• Supplement the loss of income during maternity or paternity leave
• Take that trip of a lifetime you have been thinking about for years

Jump to the Midkey Loan Calculator to see how much you can borrow.

Australians are turning to Midkey loans for opportunities and relief

Whether you are expecting a baby, balancing your kids’ future, assessing your career, improving your home, planning your retirement or managing rising costs and debt, we understand the stage of life you are facing and have a loan solution to fit your unique situation.

If you have an existing mortgage, a Midkey loan enables you to access up to 30 per cent of your property’s value, with no monthly payments while you retain full ownership of the property. And if it is a first mortgage, you can unlock up to 35 per cent.

Your borrowing capability may change depending on your property type, which you can learn more about using the Loan Calculator. 

For people aged 18 and over, you can choose to take out a Midkey as a second loan alongside your existing mortgage, or use Midkey as a standalone first mortgage.

Unlike other lenders, Midkey determines your borrowing eligibility based on your assets, which is ideal if your income has not increased (or decreased) since taking out your first loan. 

The no monthly payments model offers the option to pay down other debts to minimise your existing expenses over the life of your loan. 

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Simple interest accrues at a rate slightly higher than traditional loans, and there is no fixed loan term. You decide when it would be best to pay back the loan and all the interest, often after you sell your property or when you refinance, and that gives you extra control over your future. 

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When you repay the loan and interest, you will also pay a Deferral Fee which is a proportion of your homes increase in value.  

However, if your home’s value does not increase over the life of the loan, no Deferral Fee is charged – ultimately reducing financial cost on your end.

If you are planning for the future, or need to make a change today, we provide personalised support and will help you understand if a Midkey loan is right for you. Connect with our experienced, Australian-based Loan Specialists to see if you qualify.

Your home is your store of wealth. You can unlock it responsibly with Midkey.