Borrow against your property
You borrow an approved amount using the available equity in your home.
Home equity rich.
Cash flow constrained.
Access the equity in your home without adding regular monthly principal or interest repayments.
NO MONTHLY PAYMENTS LOAN
Use your home equity with greater financial flexibility.
Your home may hold substantial equity, even when your monthly cash flow feels stretched.
A no monthly payments home loan may help create more breathing room in your household budget by allowing you to access your home equity without adding another monthly payment.
The loan may be structured as either a first or second mortgage and used for one purpose or a combination of eligible financial needs.
HOW IT WORKS
A straightforward way to access your property equity.
Home equity is the difference between your property’s value and the amount you currently owe against it.
No regular monthly payments
You do not make regular monthly principal or interest repayments during the life of the loan.
Simple interest applies
Interest is calculated on the original amount borrowed rather than on previously accrued interest.
Repay when an agreed event occurs
The loan is generally repaid when you sell, refinance, choose to repay or another contractual repayment event occurs.
COMMON USES
Use the funds for the priorities that matter most.
Funds may be used for one purpose or a combination of eligible financial needs.
Reduce your mortgage
Reduce or replace an existing home loan and potentially free up more income for everyday expenses.
Consolidate debts
Pay eligible credit cards, personal loans, tax debts or other liabilities.
Renovate your home
Fund repairs, renovations, extensions, accessibility improvements or work before selling.
Invest in property
Access funds for deposits, purchase costs or investment-property improvements.
Buy your next home
Help fund a deposit, stamp duty, purchase costs or the gap between properties.
Help family members
Assist with a property deposit, education costs or another major financial need.
Start or grow a business
Fund equipment, vehicles, stock, premises, technology or working capital.
Manage separation or divorce
Access funds for settlements, legal costs, refinancing or retaining the family home.
Pay education costs
Cover tuition, school fees, accommodation, study costs or education-related travel.
Meet personal expenses
Fund medical treatment, rehabilitation, home modifications or ongoing care.
KEY FEATURES
Important loan characteristics.
- No monthly repayments No regular principal or interest payments are required during the life of the loan.
- Simple interest Interest is calculated on the original amount borrowed, not previously accrued interest.
- No fixed loan term There is no predetermined end date, although contractual repayment events apply.
- First or second mortgage options The loan may replace an existing mortgage or sit behind an eligible current home loan.
WHAT WILL YOU REPAY?
The balance and costs accrue over time.
Although there are no monthly payments, interest and other costs still accrue. The amount payable at the end of the loan may include:
- The original loan amount
- Accumulated simple interest
- Applicable lender fees and charges
- A deferral fee linked to an agreed share of any increase in the property’s value, where applicable
Your hfinance broker can explain the costs and model how the loan balance may change over time.
IS IT RIGHT FOR YOU?
This type of lending may be worth considering if you:
- Have substantial equity in your property
- Want to access funds without selling your home
- Want to avoid another regular monthly payment
- Are limited by traditional income-based borrowing requirements
- Want to improve cash flow or fund a major expense
Approval remains subject to eligibility, property requirements, credit assessment and responsible lending obligations.
Understand the long-term costs before accessing your equity.
Home equity release may provide greater financial flexibility, but it is important to understand the costs, repayment events and potential effect on the equity remaining in your property.
Speak to an hfinance Broker →