Unlock your equity.
Unlock your wealth.
Free yourself from financial pressure with a smarter way to access the value in your home. No monthly payments, use your equity without selling, pay it back when it suits you.




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What makes Midkey
a better solution?
That’s right, zero monthly payments. All principal and interest can be paid at the end of the loan, which is when you sell your home or decide to repay.
We see possibilities where others see limits. Because we don’t require you to make ongoing monthly payments, we can consider your assets more than your income. This new approach can help you unlock the equity in your home.
Midkey allows you to expand your financing options with either a first or second mortgage. A second mortgage enables you to get a second loan that is in addition to your existing home loan.
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Your Midkey loan can be used for many of life’s opportunities – see the examples below. We’re all different, with different financial needs, so you get to decide how you want to use your Midkey loan. From renovations to school fees, to helping your own kids get a start on the property ladder. You don’t have to use it for just one thing either, explore some of the different ways you could use it below, but these are just the start.
If you’re eligible, we believe anyone deserves a chance to unlock their wealth. Unlike a standard reverse mortgage, which is only available to over 55s, anyone 18 or older can apply for a Midkey loan.
Midkey loans have “simple” interest. This means that interest is calculated on the initial amount you borrowed. That’s unlike compound interest where the interest charges are added to your loan balance and then the next year’s interest is calculated on the higher balance. Compound interest causes the equity you have in your property to erode much faster than simple interest. That’s the reason why we never charge compound interest. We charge simple interest.
We can help keep more of your income in your pocket every month. By using your Midkey loan to reduce your existing debts, you can lower your payments on your home loan, credit cards, or tax debts. With no monthly payments on your Midkey loan, your overall monthly outgoings will decrease.
Midkey home equity loans now cover three property types
6.85% Simple interest
7.35% Simple interest
7.85% Simple interest
7.1% Simple interest
7.6% Simple interest
8.1% Simple interest
How much does it cost?
What you pay at the start of your loan
What you pay during the life of your loan
Although there are no regular ongoing payments under a Midkey loan, if you default under your Midkey loan or the loan-to-value ratio of your mortgaged property exceeds 100%, you may need to make payments to us during the life of your loan.
What you pay at the end of your loan
Amount borrowed from Midkey.
Current interest rates:
Owner-occupier house (6.85%)
Investment house (7.35%)
Apartment (7.85%)
Instead of monthly payments, you pay the Midkey Deferral Fee at the end of your loan* (the end is when you or your executor sell your property or when you want to repay). This innovative fee is a proportion of any increase in your home’s value over the course of your loan**, after we apply an initial 5% valuation discount. The proportion is your Midkey home loan compared to your home’s value. It is agreed upfront, and this is the percentage we use to calculate your Midkey Deferral Fee. So, for example, if your Midkey loan is 20% of your home's value at the start of your loan, the Midkey Deferral Fee will be 20% of the increase in your home’s value at the time you repay your loan. No increase in value, no Midkey Deferral Fee.
**After we apply an initial 5% valuation discount.
How can a Midkey
loan help you?
debt
assist
divorce
fees
house
Designed for
responsible borrowers
Innovation doesn’t mean irresponsible.
We’ve already helped manyAustralians
unlock their midlife...
It takes less than three minutes to check your eligibility, with no impact to your credit score.
Trusted by our borrowers
Check out our latest Trustpilot reviews
What Midkey customers have to say
Frequently asked questions
Take a look at the most commonly asked questions.
What is a Midkey No Monthly Payments Loan?
A Midkey No Monthly Payments Loan (called a “Midkey loan”) is different from any other kind of home loan or mortgage in Australia. Our borrowers do not make any regular, monthly payments. Instead, at the end of the loan, they pay the loan amount and simple interest (not compound interest), plus a new innovative Midkey Deferral Fee*.
There is no fixed repayment timeframe, but the loan must be repaid when you sell your home, move into aged care, die, or at other specific events agreed upfront.
The Midkey Deferral Fee is the fee you pay for the benefit of deferring all your principal and interest payments to the end of your Midkey home loan. It's a proportion of the increase in your home's value above the agreed initial value** over the loan term. The proportion is calculated by dividing your Midkey loan amount by your home's agreed initial value at the start of the loan. We refer to this proportion as the deferred payments percentage.
Making partial repayments during your Midkey loan term will reduce the deferred payments percentage that determines your Midkey Deferral Fee. If no partial repayments are made, the original deferred payments percentage (agreed at the start of your loan) will stay the same.
How the Midkey Deferral Fee works:
- If your loan is 10% of your home's agreed initial value, you pay 10% of any increase in your home's value above the agreed initial value** over the loan term.
- If your loan is 20% of your home's agreed initial value, you pay 20% of any increase in your home's value above the agreed initial value** over the loan term.
You only pay the Midkey Deferral Fee if your home’s agreed initial value increases. If it doesn't increase or it decreases, you don't pay a Midkey Deferral Fee.
We provide first and second mortgages - if you already have a mortgage over your home, your Midkey loan can be secured by a second mortgage.
*Other fees, like establishment, valuation, settlement, documentation, discharge, processing, and other incidental fees, are also payable.
**This is the agreed initial value of your home after Midkey has applied a 5% reduction to your home’s initial independent valuation.
How do I qualify for a Midkey No Monthly Payments Loan?
To qualify:
- Your home, or the one you intend to buy, needs to be located in a state capital or major population centre in Australia (excluding NT and Victoria. Click here to join our Waitlist for Victoria, where we expect to offer our loans soon.)
- You must have sufficient usable equity in your home:
- for an owner-occupied house, usable equity must be at least 20%
- for an investment house or apartment, usable equity must be at least 25%
Where usable equity is the proportion of your home’s agreed initial value that remains after subtracting all outstanding loan balances secured against it.
Example: Let’s say the agreed initial value of Emma’s owner-occupied home is $1m, and she owes $500,000 on her first mortgage home loan. This means Emma has $500,000 of usable equity in her home (i.e. 50%), making her eligible for a Midkey loan.
- If you are securing your Midkey loan with a second mortgage, your first mortgage must be a traditional “principal plus interest” home loan, and Midkey must have a priority agreement with your first lender. Midkey can help arrange this agreement, or you can choose to refinance with a Midkey Partner Lender.
- you need to be an Australian citizen over the age of 18.
- All loans are subject to Midkey’s approval.
How much can I borrow using a Midkey No Monthly Payments Loan?
A Midkey loan can be a minimum of:
- $100,000
For owner-occupier houses, the amount of your Midkey loan can be:
- up to 35% of the agreed initial value of your home if your Midkey loan will be secured by a first mortgage (this means you don’t have or plan to have a traditional mortgage over your home), or
- up to 30% of the agreed initial value of your home if your Midkey loan will be secured by a second mortgage (this means you have or will have a traditional mortgage over your home).
The combined loan-to-value ratio for your home cannot exceed 80% (including the outstanding balance of any existing first mortgage home loan).
For investment properties, the amount of your Midkey loan can be:
- up to 35% of the agreed initial value of your home if your Midkey loan will be secured by a first mortgage (this means you don’t have or plan to have a traditional mortgage over your home), or
- up to 30% of the agreed initial value of your home if your Midkey loan will be secured by a second mortgage (you have or will have a traditional mortgage over your home).
The combined loan-to-value ratio for your home cannot exceed 75% (including the outstanding balance of any existing first mortgage home loan).
For apartments, the amount of your Midkey loan can be:
- up to 33% of the agreed initial value of your home if your Midkey loan will be secured by a first mortgage (this means you don’t have or plan to have a traditional mortgage over your home), or
- up to 28% of the agreed initial value of your home if your Midkey loan will be secured by a second mortgage (you have or will have a traditional mortgage over your home).
The combined loan-to-value ratio for your home cannot exceed 75% (including the outstanding balance of any existing first mortgage home loan).
What do I pay at the end of a Midkey No Monthly Payments Loan?
At the end of your Midkey No Monthly Payments Loan – typically when you sell your home or choose to repay – you’ll pay:
- The original loan amount (principal): This is the amount you borrowed at the start of your Midkey loan.
- Simple interest that has accumulated on your loan amount. Midkey charges simple interest (not compounding), which means interest is calculated only on your original loan amount – not on any interest that’s already accrued. For example, interest that builds up this year won’t generate more interest next year.
- The rate is typically 1-2% higher than a traditional home loan, but lower than reverse mortgage or typical second mortgage rates.
- It’s a variable rate, linked to the Reserve Bank of Australia’s cash rate:
- Owner-occupiers: RBA + 3.25%
- Investment houses: RBA + 3.75%
- Apartments: RBA + 4.25%
- The Midkey Deferral Fee: This is a proportion of any increase in the agreed initial value* of your home during the loan term. The proportion is agreed upfront and calculated by dividing your Midkey loan amount by your home’s agreed initial value. We refer to this proportion as the deferred payments percentage.
Making partial repayments during your Midkey loan term will reduce the deferred payments percentage that determines your Midkey Deferral Fee. If no partial repayments are made, the original deferred payments percentage (agreed at the start of your loan) will stay the same.
Below are two examples of how a Midkey Deferral Fee is calculated:
- If, at the start of your Midkey loan, the amount of your Midkey loan was 10% of your home’s agreed initial value, your Midkey Deferral Fee will be 10% of any increase in your home’s value over the agreed initial value during the term of your loan.
- If, at the start of your Midkey loan, the amount of your Midkey loan was 20% of your home’s agreed initial value, your Midkey Deferral Fee will be 20% of any increase in your home’s value over the agreed initial value during the term of your loan.
If, at the end of your Midkey loan, the agreed initial value of your home has not increased or has decreased, you will not pay a Midkey Deferral Fee.
*For every Midkey loan, we apply a minimum 5% reduction to your home’s initial independent valuation. This adjusted figure is called the agreed initial value. We apply this reduction because the economics of Midkey’s No Monthly Payments Loan are designed primarily for long-term borrowers. However, we understand that some borrowers may need short-term solutions too. By using the agreed initial value, Midkey can responsibly offer loans to both short-term and long-term borrowers – while keeping our model fair and sustainable for everyone.
- Valuation fee (if required)
A final independent valuation may be needed. This fee is paid directly to an independent valuer, typically $300-$3,850 (quotes required for homes valued over $10 million)
- Discharge fee: Approximately $500
Note: There are no regular or monthly fees charged during the term of your Midkey loan. However, if certain events occur during the term of your loan (for example, if you want to make a partial repayment of your Midkey loan or you need to make a partial repayment because the loan to value ratio that applies to your home is greater than 100%), you may need to pay some additional fees (like partial repayment fees, valuation fees, processing fees, third party fees, and other incidental fees).
How is a Midkey No Monthly Payments Loan different from a traditional home loan?
The main differences are:
- Timing of payments: Traditional home loans require principal and interest payments monthly. Midkey loans have no regular monthly payments; all principal and interest can be repaid at the end of the loan.
- Assessment flexibility: Traditional lenders assess your ability to make regular loan repayments by reviewing your income, expenses, and assets. While Midkey considers similar factors for any of your priority debts, we don’t require you to prove your ability to make regular or monthly repayments on our loans.
- Unlocking home equity: Due to our assessment flexibility, even if you don’t meet traditional serviceability criteria, you may still qualify for a Midkey loan and unlock your usable home equity to increase your borrowing capacity.
- Reduce your monthly debt payments: If you want to reduce your monthly debt payments, you can use a Midkey loan to decrease the amount of your traditional home loan.
- Simple interest: A Midkey loan charges simple interest (not compound interest). Simple interest means that interest is calculated only on the original loan amount, not on accumulated interest. Our simple interest rate is roughly 1% to 2% higher than a traditional home loan.
- Repayment date: A traditional home loan typically specifies a date by which you must repay your loan, whereas a Midkey loan is only repayable on certain events, like if you sell your home, you decide you want to repay, move into aged care, or you die.
- Innovative Deferral Fee: The Midkey loan has a new, innovative Midkey Deferral Fee that is a proportion of any increase in the agreed initial value* of your home during the loan term. The proportion is agreed upfront and calculated by dividing your Midkey loan amount by your home’s agreed initial value. We refer to this proportion as the deferred payments percentage.
Below are two Midkey Deferral Fee examples:
- If, at the start of your Midkey loan, the amount of your Midkey loan was 10% of your home’s agreed initial value, your Midkey Deferral Fee will be 10% of any increase in your home’s value over the agreed initial value during the term of your loan.
- If at the start of your Midkey loan, the amount of your Midkey loan was 20% of your home’s agreed initial value, your Midkey Deferral Fee will be 20% of any increase in your home’s value over the agreed initial value during the term of your loan.
If, at the end of your Midkey loan, the agreed initial value of your home has not increased or has decreased, you will not pay a Midkey Deferral Fee.
Making partial repayments during your Midkey loan term will reduce the deferred payments percentage that determines your Midkey Deferral Fee. If no partial repayments are made, the original deferred payments percentage (agreed at the start of your loan) will stay the same.
*For every Midkey loan, we apply a minimum 5% reduction to your home’s initial independent valuation. This adjusted figure is called the agreed initial value. We apply this reduction because the economics of Midkey’s No Monthly Payments Loan are designed primarily for long-term borrowers. However, we understand that some borrowers may need short-term solutions too. By using the agreed initial value, Midkey can responsibly offer loans to both short-term and long-term borrowers – while keeping our model fair and sustainable for everyone.
Note: Other differences include establishment fees, valuation and documentation costs, a settlement rescheduling fee, and specific eligibility criteria.
If I have a Midkey No Monthly Payments Loan, who owns my home?
You do. In terms of property ownership and your use of your home, a Midkey No Monthly Payments Loan operates in a similar way to a traditional home loan.
Is Midkey a bank?
No. Midkey is not a bank. We specialise in Midkey No Monthly Payments Loan for homeowners and would-be homeowners. We don’t offer bank accounts, credit cards, or other products that banks typically do.
What is a Midkey Deferral Fee?
Think of the Midkey Deferral Fee as "the fee you pay at the end of your loan for the benefit of deferring all your principal and interest payments”. Importantly, you are only charged a Midkey Deferral Fee if the agreed initial value of your home increases.
How it Works:
- The Midkey Deferral Fee is a proportion of any increase in the agreed initial value* of your home during the term of your Midkey loan. The proportion is agreed at the start of your Midkey loan and is calculated by dividing your Midkey loan amount by your home’s agreed initial value**. We refer to this proportion as the deferred payments percentage.
- For example:
If your Midkey loan is 10% of your home’s agreed initial value at the start of your Midkey loan, your Deferral Fee will be 10% of any increase in your home's agreed initial value.
If your Midkey loan is 20% of your home’s agreed initial value at the start of your Midkey loan, your Deferral Fee will be 20% of any increase in your home's agreed initial value.
- No increase in the agreed initial value of your home? No Midkey Deferral Fee. If, at the end of your loan, the agreed initial value of your home hasn’t gone up – or even if it has gone down – you won’t pay a Midkey Deferral Fee. But, for your sake and ours, we hope the value of your home appreciates through the roof, so we can all celebrate at the end. We love a win/win arrangement, and we hope you do too.
- Making partial repayments during your loan term will reduce the deferred payments percentage that determines your Midkey Deferral Fee. If no partial repayments are made, the original deferred payments percentage (agreed at the start of your loan) will stay the same.
We designed the Midkey No Monthly Payments Loan to be fair, flexible, and performance-based. If your home does well, we share in the upside. If it doesn’t, you don’t need to pay a Deferral Fee
*For every Midkey loan, we apply a minimum 5% reduction to your home’s initial independent valuation. This adjusted figure is called the agreed initial value, and it forms the basis for calculating your usable equity. We apply this reduction because the economics of Midkey’s No Monthly Payments Loan are designed primarily for long-term borrowers. However, we understand that some borrowers may need short-term solutions too. By using the agreed initial value, Midkey can responsibly offer loans to both short-term and long-term borrowers – while keeping our model fair and sustainable for everyone.
Calculate how much you can unlock here.