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Equity Finance Mortgage
TM
Apply for an
EFM®
View EFM® Brochure
OWNING A HOME IS STILL THE GREAT
AUSTRALIAN DREAM
But for many, buying that home, whether it’s your first home or a subsequent one, feels just out of
reach. For others, managing home loan repayments can
sometimes become a struggle or simply just prevent you from
doing some of the things you want to do.
Future Financial’s Equity Finance Mortgage (EFM) ® is
a new home loan that can help you reduce your home loan
repayments or even purchase a more expensive property than
you may otherwise be able to afford. Our EFM ® works in conjunction with a traditional Future
Financial Home Loan. Together they let you move some of the
expense of a traditional home loan to a later date. Here’s
how:
Future Financial EFM allows you to borrow up to 20% of a property’s value. There is no annual
percentage rate applicable to an EFM loan unless you are in
default. You are not required to make any regular monthly
interest repayments throughout the term of the EFM loan.
Instead, when you sell the property or repay the EFM for
some other reason, you must repay the EFM amount you originally
borrowed plus up to a 40% share of any increase in the value
of the property (on a 20% EFM).
REDUCE YOUR MONTHLY LOAN REPAYMENTS BY UP TO 20%1.
By using a Future Financial EFM in conjunction with a
traditional Future Financial Home Loan, and agreeing to
share any future increases in the value of the property, the
borrower can make their purchase affordable by reducing
their monthly loan repayments by up to 20%.
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Example excludes application fees and
other fees associated with the loan such as valuation fees,
account keeping fees and transaction fees as well as
transaction costs associated with purchasing a home such as
stamp duty and government fees. Please note the example assumes that the interest rate on
the traditional home loan only and the traditional home loan
taken in conjunction with an EFM is the same. This
assumption may not apply to your circumstances. Interest
rates available on a traditional home loan only may be lower
than the interest rate available on a traditional home loan taken in conjunction with an
EFM. Ask your lender to
compare this for you taking your circumstances into
consideration. |
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1
Based on the example “ADDING
AN EFM TO MAKE PURCHASING A HOME AFFORDABLE”. Depending on
individual circumstances an EFM may not reduce your total
loan repayment.
For the assumptions used in calculating this example please
follow this link.
Monthly loan repayment comparisons may vary depending on
changes to these assumptions.
PURCHASE 25% MORE EXPENSIVE PROPERTY
By using a Future Financial EFM in conjunction with a traditional Future Financial Home Loan,
and agreeing to share any future increases in the value of
the property, borrowers are able to purchase a 25% more
expensive property and still make the same monthly loan
repayments.
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Example excludes application fees and
other fees associated with the loan such as valuation fees,
account keeping fees and transaction fees as well as
transaction costs associated with purchasing a home such as
stamp duty and government fees. Please note the example assumes that the interest rate on
the traditional home loan only and the traditional home loan
taken in conjunction with an EFM is the same. This
assumption may not apply to your circumstances. Interest
rates available on a traditional home loan only may be lower
than the interest rate available on a traditional home loan taken in conjunction with an
EFM. Ask your lender to
compare this for you taking your circumstances into
consideration. |
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For the assumptions used in calculating this example please
follow this link.
RE-INVENT YOUR MORTGAGE. FREE UP
CASH FOR OTHER PURPOSES
By using a Future Financial EFM in conjunction with a traditional Future Financial Home Loan,
and agreeing to share any future increases in the value of
the property, the borrower can reinvent their mortgage and
reduce their monthly loan repayments to free up funds for
other things such as:
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Example excludes application fees and
other fees associated with the loan such as valuation fees,
account keeping fees and transaction fees as well as
transaction costs associated with purchasing a home such as
stamp duty and government fees. Please note the example assumes that the interest rate on
the traditional home loan only and the traditional home loan
taken in conjunction with an EFM is the same. This
assumption may not apply to your circumstances. Interest
rates available on a traditional home loan only may be lower
than the interest rate available on a traditional home loan taken in conjunction with an
EFM. Ask your lender to
compare this for you taking your circumstances into
consideration. |
|
For the assumptions used in calculating this example please
follow this link.
Monthly loan repayment comparisons may vary depending on
changes to these assumptions.
WHO IS ELGIBLE?
To be eligible for an EFM you must:
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Be an individual or be borrowing
jointly with other individuals – you cannot be a company
or a trust
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Not require the support of a
guarantor
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Secure the EFM with your owner
occupied property which must be in an acceptable location
and of an acceptable type
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Have a 5% deposit to put towards any
home purchase
YOUR PEACE OF MIND
With an EFM you:
Of course you can refinance your EFM or
repay it early, the choice is yours, but you will not be
able to share in any decrease in property value at the time.
WHAT DO I DO NOW
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Contact Future Financial on 1300
MYLOAN (1300695626) or email
efm@futurefinancial.com.au we will schedule an
appointment with an accredited Future Financial introducer
who will talk you through the product and application
process and help you submit the form.
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Arrange for Future Financial to have
your home valued by an independent valuer.
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Discuss your intention to take out
an EFM with your legal representative and / or independent
financial adviser.
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Sign all required documentation and
once approved we will provide you with the EFM.
For full details of the product please
download the following information sheets:
Assumptions for examples
This website
contains examples and graphs that illustrate the financial
impact of using EFM loans. They do not represent what will
actually happen for any loan that you may take as property
prices, interest rates and other circumstances will change.
The examples and graphs are formulated based on a set of
assumptions outlined below. These assumptions are not
forecasts or predictions and may or may not reflect actual
events. Each example assumes that the EFM is for 20% of the
property’s value at the outset, has a 0% interest rate and
that no default interest is payable. The actual EFM may be
for less than 20% of the property’s value and the outcomes
may vary considerably if default interest becomes payable.
If the example contains a traditional home loan comparison,
it assumes that the traditional home loan interest rate is
7.80% p.a., the loan term is 25 years, all principal and
interest payments are made on time, the only repayments made
are the required repayments - that is no additional
repayments or redraws are made, and no event of default has
occurred and default interest is not incurred at anytime
during the life of the loan. The actual traditional home
loan term and interest rate may be greater or less than
these assumptions and individual circumstances such as
additional repayments may affect the outcomes considerably.
The assumes interest rate of 7.80% for the traditional home
loan used in the examples is based on the 'Indicator Lending
Rates-Banks' published by the Reserve Bank of Australia for
a standard variable rate housing loan as at October 2006.
If the example contains Lenders Mortgage
Insurance, the premium payable is based on rates effective
for the relevant product as at the date of this booklet.
Assumptions specific to an example are
detailed in the example. Numbers may have been rounded to
the nearest thousand or one percent where relevant. Fees and
charges other than those mentioned in the examples such as
application fees, valuation and legal fees, conveyancing
fees and stamp duty on the purchase of a property are
payable. These will vary depending on the individual
circumstances.
Legals
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 Disclosure Document” and the “Equity Finance
Mortgage Terms and Conditions Booklet” and consider them
before making a decision about whether to acquire an Equity
Finance Mortgage. A copy of the “Equity Finance Mortgage
Disclosure Document” and the “Equity Finance Mortgage Terms
and Conditions Booklet” can be obtained by contacting us.
All information is correct as at
15/02/2007 and is subject to change. Fees, charges, terms,
conditions and lending criteria apply. Full details are
available on application. EFMs are arranged by Rismark
International Funds Management Limited ABN 15 114 530 139.
AFS licence number (293881) (trading as Rismark
International). Permanent Custodians Limited ACN 001 426 384
is the lender.
ARES Capital Management Pty Limited’s
intellectual property relating to the EFM product is
protected by Australian Innovation Patent No. 2005 100 871,
2005 100 869, 2005 100 868, 2005 100 867, 2005 100 865, and
2005 100 864. ® Equity Finance Mortgage (EFM) and EFM are
registered trade marks of ARES Capital Management Pty
Limited ABN 93 113 861 046. TMEquity Finance Mortgage is a
pending trade mark of ARES Capital Management Pty Limited
ABN 93 113 861 046.
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