Equity Release
A loan that allows property owners to access equity in their current home for any worthwhile purpose.
ASCF’s equity release loans are available for both personal and business purposes on a first or second mortgage. An ASCF equity release loan can allow borrowers to unlock capital tied up in their real estate to help fund new investments or other ventures.
Whether the purpose is to undertake minor renovations and prepare a property for sale or to assist children or grandchildren with a deposit for their first home, ASCF can consider the application.
What’s more, for commercial or business-related loans where a borrower can demonstrate a satisfactory exit strategy, interest can be capitalised into the loan—meaning standard monthly serviceability evidence may not be required.
Below is an example of how ASCF assisted a previous borrower with an equity release loan:
What is an Equity Release?
Benefit Title
Benefit Description
Case Study
Sitting on equity has its uses when elderly parents want to assist their adult children with a $200,000 financing shortfall, but they don’t have the serviceability to qualify for traditional finance.
Exit
The customer’s proposed exit was via sale, still leaving them plenty of funds for retirement.
Solution
The parents had decided they would downsize to a retirement villa within 2 years, so ASCF was able to offer them an equity loan with all interest retained. This allowed them to release $200,000 as a coded loan and gift it to their children to assist with the purchase.
Problem
ASCF was approached by a broker who knew a couple in their forties who wished to purchase a new property, but they were short on servicing. Their retired elderly parents owned their own unencumbered home in Hawthorne, VIC, but only had the old age pension as income, so they were not in a position to provide a servicing guarantee.