With an EFM you: 

• Have full title to the home - it remains in your name (subject to a first mortgage granted to a traditional home loan lender and a second mortgage granted to an EFM lender);

            Can refinance (ie, discharge) the EFM loan at any time at your discretion;
                Only have to repay it if:  
        •  you sell your property;
        •  the EFM gets to the end of its 25 year term;
        •  the property passes to your estate;
        •  your property changes hands for any other reason; and
        •  you are in default.

You can refinance your EFM or repay it early--the choice is yours--but you will not be able to share in any decrease in property value at the time you repay if you do not actually realise the loss (ie, by selling your property). 
While the EFM lender will share in real losses, they will not share in "paper" losses that have not actually been realised in a proper third-party sale.  
In situations when you repay the EFM without selling your property, and the value of your home has declined, you would normally just repay the original dollar value of the loan amount with no interest whatsoever.

And don’t forget, except in extreme circumstances (for example if your property is destroyed and is uninsured or if you are in default), you will always get a minimum 60% of any increase in the value of the property.

We strongly recommend that customers  obtain independent legal and financial advice in relation to this EFM loan prior to entering into the EFM loan contract.

 

 

 EFM Disclaimer:
This website does not take into account personal objectives, financial situation or particular needs. Cuatomers  should obtain a copy of the “Equity Finance Mortgage (EFM) Disclosure Document” and the “EFM Terms & Conditions Booklet”, and consider them before making a decision about whether to enter into an EFM. A copy of the EFM Disclosure Document is available on this website. Fees, charges, terms, conditions and lending criteria apply. Full details are available on application.
EFMs are arranged by Rismark International Funds Management Ltd ABN 15 114 530 139. AFS licence no. 293881 (trading as Rismark International). Permanent Custodians Limited ACN 001 426 384 is the lender.
® Equity Finance Mortgage (EFM) and EFM are registered trade marks of ARES Capital Management Pty Limited ABN 93 113 861 046.
TM Equity Finance Mortgage is a pending trade mark of ARES Capital Management Pty Limited ABN 93 113 861 046..
ARES Capital Management Pty Limited’s intellectual property relating to the EFM product is protected by Australian Innovation Patent Numbers 2005 100 871, 2005 100 869, 20058 100 868, 2005 100 867, 2005 100865, and 2005 100 864.