Important information

Please be aware of the following;

Effective Immediately Tuesday 6th March 2012 Credit License Cancellation Lodged By Us With ASIC

Ability Finance have elected to cease all credit activities covered by ASIC credit licensing for various reasons including but not limited to;

  1. Lender commission cuts over the past few years.
  2. Additional liability, workload and costs arising from National Credit Licensing
  3. Lender minimum volume restrictions which result in smaller brokers not being able to offer all options to customers.
  4. Regularly encountered inexperienced lender staff who are unaware of their own employers policies whose advice wastes both broker and customers time and resources.
  • As a blog style website there is only historical content contained within this website that is out of date and no longer applicable. This content must only be used for historical reference purposes.
  • Ability Finance, through choice, no longer represent any lenders who may be historically referred to within this website.
  • No information or content contained on this site should be relied on as being current.
  • No content contained within this site should be taken as advice in any way at all.

Should you feel there is any content that should be removed from this site please contact the webmaster.
By any chance you feel specific content is interpreted as offering any credit activities by us it is to be ignored, please report to the webmaster for removal or modification.
If you are legally entitled to engage in credit activities and would like to advertise on this site please contact the webmaster.
If you would like a website developed or even to purchase this site modified to your requirements please contact the webmaster.
Meanwhile we are working hard at creating a one stop shop for purchasing high quality spray painting equipment online including an extensive range of the best spray gun models we are able to offer at discounted prices everyday right across the complete range of available spray gun models. Online spray gun prices with old fashioned personal service levels.

Equity Finance Mortgage

Equity Finance Mortgage® (EFM®)

Now there is a new home loan available that can help you reduce your monthly home loan repayments or even purchase a more expensive property than you may otherwise be able to afford. An EFM works in conjunction with a traditional home loan. Together they let you move some of the expense of a traditional home loan to later when you eventually sell your property.

Here’s how: An 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 loan repayments throughout the term of the EFM loan. Instead, when you sell the property or repay the EFM for any other reason, you repay the EFM amount you originally borrowed plus up to a 40% share of any increase in the value of the property.

To clarify this, the 40 percent, assuming you took out a 20 percent EFM is only of the profit. For example you purchase a property for $300,000, you have 20 percent deposit and cash to cover additional purchase costs, so the total loan required is $240,000. You choose a 20 percent EFM which reduces the traditional loan to $192,000 and the EFM loan will make up the additional $48,000. When the time comes to sell the property the $48,000 will need to be repaid of course. Now lets say the property increased in value by $50,000 during your ownership and was sold for $350,000. The amount to be paid back to the EFM portion of the loan would be $48,000 plus 40 percent of the $50,000 increase. e.g. $48,000 + $20,000 = $68,000 paid back on the EFM.

After this there should be still $282,000 remaining to pay out what ever is left owing on the original $192,000 traditional loan portion. Even if the traditional loan was still at $192,000 for the sake of an example there would be $90,000 remaining which would be $30,000 more than the original $60,000 deposit contributed. And while nobody likes to talk about property values decreasing, if this does happen when you have an EFM and you are selling your property, you may not have to repay the full EFM loan amount - a feature unique to an EFM.

To find out more about and EFM contact Ability Finance now to speak to an EFM accredited lender.

Fees, charges, terms, conditions and lending criteria apply. We recommended you read the EFM Product Disclosure Document available from one of our accredited lenders. Equity Finance Mortgage EFM and EFM are registered trade marks of ARES Capital Management Pty Limited ABN 93 113 861 046.


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