---

iden group

An Equity Finance Mortgage (EFM)® is a home loan that can help you :

• Increase your borrowing capacity by up to 25%;
• Lower your monthly loan repayments by up to 25%

It works in conjunction with a Balanced Variable Home Loan from Iden Group, as follows:.

How does it work?
An EFM® allows you to borrow up to 20% of a property's value and up to 75% of the property’s value as a Balanced Variable Loan from Iden Group.

There is NO interest rate applicable on the EFM portion of the loan, unless you are in default.  There are NO monthly interest repayments required throughout the term of the EFM, which you can hold for up to 25 years.

Instead, when you sell the property or repay the EFM, you repay the EFM amount you originally borrowed plus up to a 40% share of any increase in the value of the property.
In the event of a decrease in property value when you are selling, you may not have to repay the full EFM loan amount - a feature unique to an EFM.

Specifically, if the value of your home falls, and you realise a capital loss when you sell your property, the EFM lender will share up to 20% of the realised losses on your property! The share of the losses borne by the lender will depend on how much you borrow in the first place and how much your property has decreased in value.

BENEFITS
An EFM can help you:

• Buy a more expensive or bigger property than you may otherwise be able to afford;
• Get out of the renting cycle and into home ownership;
• Reduce your current monthly mortgage repayments (via refinancing of your existing home loan);
• Free up money by using the equity in your property for other purposes such as investment and lifestyle activities

ELIGIBILITY:  The following criteria must be met to be eligible for an Equity Finance Mortgage (EFM):

• A 10% deposit is required;
• Property must be owner-occupied (not for investment purpose);
• Property must be at least 12 mths old;
• You must not require support of a guarantor or be a company or trust.

Further information on EFM can be found by clicking here

To Compare an EFM with a traditional loan, click here.
To Calculate Appreciation payment / Depreciation allowance, click here.

To find out how the Equity Finance Mortgage (EFM) can help you, call 1300 334 336, or click on the link below Click here to register your interest

We recommend that you read the EFM Disclosure Document and obtain independent legal and financial advice in relation to this EFM loan prior to entering into the EFM loan contract.  

 

 

 

EFM Disclaimer:
This website does not take into account your personal objectives, financial situation or particular needs. You should obtain a copy of the “Equity Finance Mortgage (EFM) Disclosure Document” and the “EFM Terms & Conditions Booklet”, and consider them before making a decision about whether to enter into an EFM. A copy can be obtained by calling Iden Group on 1300 334 336. Fees, charges, terms, conditions and lending criteria apply. Full details are available on application.

EFMs are arranged by Rismark International Funds Management Ltd ABN 15 114 530 139. AFS licence no. 293881 (trading as Rismark International). Permanent Custodians Limited ACN 001 426 384 is the lender.

® Equity Finance Mortgage (EFM) and EFM are registered trade marks of ARES Capital Management Pty Limited ABN 93 113 861 046.

TM Equity Finance Mortgage is a pending trade mark of ARES Capital Management Pty Limited ABN 93 113 861 046..

ARES Capital Management Pty Limited’s intellectual property relating to the EFM product is protected by Australian Innovation Patent Numbers 2005 100 871, 2005 100 869, 20058 100 868, 2005 100 867, 2005 100865, and 2005 100 864.