Sharing risk and profit an acceptable outcome
The real question here is how comfortable you are with being in partnership with your mortgage holder. It is very likely you will make a profit when you sell your house, so will you be ok cutting the Mortgage Lender a check for 40% of your profit. I mean if you buy a house today for $400,000 (including all fees and stamp duty) with the help of an Equity Finance Mortgage loan and sell it for $500,000 in six months, will you be happy to send your Mortgage Lender a check for $40,000? If you think this will be ok, then I say you can have a chance at a successful partnership with your Mortgage Lender and an Equity Finance Mortgage should be one of your options.
An Equity Finance Mortgage has great potential to help owner occupiers leverage their current buying power and afford a better address or even survive a credit crisis. For example, a first homebuyer who may only afford a property worth $400,000 may be able to purchase a property for $500,000 with the help of an Equity Finance Mortgage. A current home owner may be able to refinance to reduce current monthly mortgage repayments by as much as 20%, and free up their cash flow for other important family expense’s or to top up their superannuation.
The new Equity Finance Mortgage needs to be evaluated whatever your situation. I suggest you ring your Mortgage Broker and find out if you can make it work in your favor. Mortgage rates will always fluctuate, just look at the historical rates, but the right sort of Mortgage Loan will make life easier.