Greenway Equity Mortgage: FAQ

Frequently asked questions

What is a Greenway Equity Mortgage (GEM)?	A Greenway Equity Mortgage (GEM) is a new generation home loan, currently in development. What makes a GEM distinctive is the Equity Loan. With a GEM Equity Loan, there are no monthly repayments and no compounding interest. Future repayment is linked to property growth not interest rates. Greenway will only benefit if you do, from an increase in the property value.
Who can use a GEM?	You might take out a GEM Equity Loan because you want to: ■ Eliminate your monthly mortgage repayments ■ Buy a home without increased financial pressure ■ Access the equity in your home without the worry of compounding interest.
When will the GEMs be available?	We are currently in the development phase and expect to launch in 2008.
How can I apply?	GEMs will be distributed through accredited financial planners or mortgage brokers. If you would like to register your interest, please click here
Who will fund the GEMs?	GEM Equity Loans are expected to be funded by large institutional investors who want exposure to the investment characteristics of the owner-occupied residential property market.
Are there any restrictions on what a GEM can be used for?	If you have an existing home loan, a GEM replaces it. Any additional GEM amount can be used for any purpose. Your Financial Planner or Mortgage Broker can recommend a strategy to suit you.
What are the key disadvantages?	Repayment of your GEM Equity Loan is linked to property prices. This means that in periods of high property growth, the GEM repayment could be higher than a traditional mortgage. You therefore need to weigh up the cost of a GEM Equity Loan against the benefits that the loan will provide.

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