With the after-shocks of the past interest rate rises still being felt by many home buyers and the real impact not fully clear until the next quarterly figures, it is a great relieve for many that the RBA (Reserve Bank of Australia) has decided to hold further increases – well, for now anyway.
Given the continuing volatility of the share trade, the US finance markets and hence our interest rate climate, for many home owners refinancing or re-drawing against their equity is not a real option in order to ease mortgage pressure or escape having to sell their homes.
Shared equity loans such as the Zero20 however pose a good alternative to either reduce repayments (mortgage stress) often alleviating the need to have to sell the property.
Largely still misunderstood, shared equity loans (EFM’s) can allow for exactly this – freeing up funds that do not immediately increase repayments or debt, added Robert, who has been able to assist many home owners in this shaky interest rate climate to relieve pressure or in some cases even allowing them to pay fund improvements or buy investment property.
If you are feeling the extra percentages on your mortgage pushing the comfort zone, talk to your broker, financial advisor or bank about a shared equity loan to ease the pain. A Zero20 loan can give you up to 20% of the value of your home – interest and repayment free. It transfers a stake of the anticipated capital growth in your home to the lender, yet can be paid out without penalty at any time – giving you the flexibility to overcome your current mortgage blues.
For more details on shared equity loans, log onto www.amohomeloans.com.au
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