SYDNEY--(BUSINESS WIRE)--Midkey, Australia’s ground-breaking NO MONTHLY PAYMENTS home loan for mid-life borrowers, is now available in Adelaide, Brisbane and Hobart. After launching its new and innovative loan solution to Sydney in April, Midkey is now expanding to these 3 additional cities.
Midkey is changing the home loan market with a new home loan that does not require monthly principal or interest payments. Borrowers pay the loan principal, the accumulated simple interest and a deferral fee at the end of the loan, where the end of the loan is when they sell their home or when they are otherwise ready to repay.
Midkey is the brainchild of two Australian investment bankers who, after decades working overseas, returned to Australia in 2021 and saw a gap in the market.
“We noticed that many of our friends, despite having significant equity in their homes, lacked the income to service additional loan payments. We realised it was a widespread problem for Australians, so we set about finding a solution,” said Richard Young, Co-CEO.
Midkey’s NO MONTHLY PAYMENTS home loans help homeowners buy a better house, buy their kids a house, pay the school fees, complete a renovation, invest in a great opportunity or reduce their existing monthly mortgage repayments.
Brisbane’s first borrower, Elizabeth, a part-time carer to the elderly and disabled, wanted to fulfil her dream of helping her daughter buy her first home. Elizabeth’s only option was a personal loan and to meet the monthly repayments she would have had to increase her working hours.
“My husband and I are eternally grateful to Midkey. We can continue to live comfortably. I work my 20-hour week without any financial burdens, and our daughter has received our wonderful gift, a fantastic step up in life,” said Elizabeth.
“Our unique loans offer freedom and relief, especially with higher interest rates and the rising cost of living. We’re excited that South Australians, Queenslanders and Tasmanians can now benefit from our Midkey home loans and we look forward to announcing more cities and major population centres soon,” said Scott Collison, Co-CEO.
Midkey is Australia’s first NO MONTHLY PAYMENTS home loan for people in their mid-life. Borrowers do not have to make any monthly payments. Instead, they pay the loan principal, the accumulated simple interest and a deferral fee at the end of the loan, which is either when they sell or when they are ready to repay. Midkey loans are offered as both first and second mortgages, so they can work alongside a borrower's current home loan, and therefore enable a homeowner to unlock the value in their homes when traditional lenders cannot. A Midkey loan can also be used to replace a part of a homeowner’s current traditional home loan to reduce its regular payments and free up cash flow. Midkey was founded in Sydney in 2021 by former Macquarie investment banker Richard Young and Scott Collison, a former investment and asset manager at Franklin Templeton and Credit Suisse who raised an initial $50 million from foreign institutional investors with a second round of fundraising underway. Their vision is to help Australians solve their financial problems and achieve their financial goals.
