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The proposed GEM Equity Loan is a new generation home loan that is based on property growth, not interest rates. It can be used as a home loan to purchase a new home or refinance an existing mortgage. It can also be a home equity loan that allows you to access your home equity. 

The table below compares key features of a GEM Equity Loan, a traditional home loan, a reverse mortgage and a home reversion scheme. 

What costs more – a GEM Equity Loan or a traditional mortgage?
A GEM Equity Loan offers clear cashflow benefits over a traditional mortgage because it has no monthly repayments. It also provides non-financial benefits, allowing people to have the home and life they want now, with more financial freedom. Often these benefits are more important, but intangible and difficult to quantify. On a purely financial comparison, the GEM Equity Loan offers better value if property growth is low.

A GEM Equity Loan could cost more than a traditional home loan or reverse mortgage in periods of high property growth. This can be offset by investing any freed-up cashflow.

To find out more download our flyer, complete our online enquiry form or call Greenway on 136 GEM (that's 136 436) 8am to 6pm, Monday to Friday. 


Compare

 GEM Equity Loan

 Traditional mortgage Reverse mortgage Home reversion scheme
Summary Home loan or home equity loan with no regular repayments or compounding interest. Repayment based on property growth not interest rates Home loan or home equity loan with repayments based on interest rates. Regular repayments usually required Home equity loan with no regular repayments. Interest is compounded over the life of the loan You sell part of your home for below the market value. The contract of sale is signed upon entry, but not settled until you sell or pass away
How much can I borrow? Up to half the value of your property Up to 100% of the value of your property Depends upon your age. If you are in your 60s, you will generally be able to borrow up to 25% of the value of your property Depends upon your age and circumstances
How is repayment calculated?    Original amount borrowed plus a share of any increase in property value Based upon interest rates Based upon interest rates Taken from sale proceeds
Do I need to make regular repayments?

 No

 Yes No No
Can I make partial repayments? Yes Yes Yes You will need to negotiate a price at which to buy back part of the property
Can I increase my borrowings? Yes Yes Yes Generally, no
Do I retain ownership of my home? Yes Yes Yes In some cases you may no longer own the property and will lose some ownership rights
 

     
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