Each example contained on this website is formulated on a range of assumptions. The main assumptions are outlined below. These assumptions are not forecasts or predictions and may or may not represent actual events.

Each example excludes application fees and other fees associated with the loans such as valuation fees, account keeping fees, transaction fees and lenders mortgage insurance (if applicable) as well as transaction costs associated with refinancing a home loan such as stamp duty, government fees, conveyancing fees and stamp duty on lenders mortgage insurance.

Each example assumes that the EFM loan is for 20% of the property's value at the outset and that no default interest is payable at any time over the term of the EFM loan. The actual EFM loan may be for less than 20% of the property's value and the outcomes may vary considerably if default interest becomes payable.

All examples of an Appreciation Payment assume that the value of the property has increased by a nominal rate of capital growth of 7% p.a. This rate of assumed capital growth is consistent with historical rates of capital growth in Australian capital cities attributable to Australian residential real estate over the period between the second quarter of 1986 to the second quarter of 2005, as measured by the Australian Bureau of Statistics Index of Established Homes Weighted Average of 8 Capital Cities. This is the longest available period covered by the Australian Bureau of Statistics Index. Actual rates of growth may be greater or less than this percentage and will differ depending on the house price index used.

If the example contains a traditional home loan comparison, it assumes that the traditional home loan interest rate is 6.85% p.a, the loan term is 25 years, all principal and interest payments are made on time, the only repayments made are the required repayments - that is, no additional repayments or redraws are made, and no event of default has occurred and default interest is not incurred at any time during the term of the loan.

The assumed interest rate of 6.85% for the traditional home loan used in the examples is based on the 'Indicator Lending Rates - Banks' published by the Reserve Bank of Australia for a standard variable rate housing loan as at December 2008. The actual traditional home loan term and interest rate applicable to your particular situation may be greater or less than the interest rates used in these assumptions and individual circumstances and events such as changes in interest rates and the making of additional repayments may affect the outcomes considerably.

If the example includes Lenders Mortgage Insurance, the premium payable is based on QBE Lenders’ Mortgage Insurance Limited ABN 70 000 511 071 ('QBE LMI') premium rates effective for the relevant product as at March 2008.

Assumptions specific to an example are detailed in the example. Numbers may have been rounded to the nearest thousand, or to one percent, where relevant.

EFMs are also sometimes known as equity mortgages, "shared equity" loans, shared appreciation mortgages (incorrectly, since under the EFM the lender may wear depreciation!), or silent partner loans.

Fees, charges, terms, conditions and lending criteria apply. Fees and charges such as application fees, valuation costs, legal fees, conveyancing fees and stamp duty and other government charges on the purchase of a property are not mentioned in the examples but may be payable. These fees and charges will vary, depending on the individual circumstances. This website does not take into account your personal objectives, financial situation, or particular needs. You should obtain a copy of the EFM Disclosure Document (available on this website) and the EFM Terms and Conditions Booklet from one of our accredited lenders and consider them before making a decision about whether to enter into an EFM.