“If mortgage pains are building and cost-of-living pressures are pushing your cashflow into the red, a pair of bankers formerly with Macquarie Capital and Credit Suisse may have come up with a solution”, writes James Gerrard, a financial planner and regular contributor to the Weekend Australian.

“Midkey is a new financing venture offering loans designed for Australians in their mid-life when costs are at their highest due to raising a family and paying off debts."

Unlike a traditional mortgage, the borrower is not required to make regular loan repayments, and there is no fixed loan term.

Clearly this is not for everyone. But on the other hand, as an adviser I can say there is no other product on the market like Midkey’s.

It is different from a traditional home loan as no regular repayment is required; however, there is the equity sharing on sale. It is different to a reverse mortgage as simple interest is calculated as opposed to compound interest.

It is a genuine innovation and that is always welcome in our tight market. Overall, the Midkey loan is an interesting concept that may suit some. It really just comes down to doing a cost-versus-benefit analysis.

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