Midkey's innovative loan solves financial challenges and fuels economic growth

Midkey’s revolutionary lending solution provides more than just financial support for Australian property owners. When borrowers use their loan funds for home renovations or business growth, that spending creates a multiplier effect across the economy.

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Home renovations

A quarter of Midkey’s borrowers to date have used their loan in whole or in part to start or finish home renovations. Without Midkey’s no-monthly-payment loan structure (which addresses loan serviceability constraints), many of these borrowers would not have been able to access suitable funding.

NHIC analysis shows that $1 million of residential construction output supports around $2.9 million of broader industry activity. In 2023, Australians spent over $12 billion on home renovations and construction. Midkey loans are indirectly boosting this contribution to economic growth.

Helping small business owners

Some Midkey borrowers are small business owners who have unlocked equity in their homes to fund business expansion. Traditional lenders were often unable to support them due to serviceability barriers.

Funding small businesses benefits the wider economy by helping owners:

• Access capital to grow and support staff and suppliers

• Avoid cash flow distress

• Create new jobs

• Increase tax contributions via payroll tax, GST and income tax

Small and medium-sized businesses (SMEs) make up 99.8% of Australia’s 2.66 million companies. Midkey Co-Founder Richard Young estimates the GDP multiplier effect of a Midkey loan used for business is between two and five times the loan amount.

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“SMEs employ roughly 70% of the private sector workforce. In recent years, some owners have struggled to unlock home equity through banks due to serviceability constraints. That’s where Midkey comes in,” said Mr Young.

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Midkey helps a business recover post-COVID

Kim, a small business owner from NSW, turned to Midkey after COVID-19 severely impacted her high-security cash and gold transport business. Her $12 million turnover collapsed, and payment terms from clients blew out to 120 days—destroying her cash flow.

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“I had lost faith in any lender supporting small business, until I found Midkey,” said Kim.

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Despite an existing mortgage, Kim was able to unlock equity in her Northern Beaches home with Midkey. The loan acted as a financial circuit breaker, helping her keep the business afloat during recovery.

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“Midkey genuinely wants to help. If you have a good business and are going through a hard time, this no-monthly-payments loan is a golden product,” she said.

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Responding to Kim’s experience, Richard Young said:

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“By helping homeowners unlock capital without income-based hurdles or monthly repayments, we can support business growth. Combined with borrowers investing in renovations or other opportunities, we’re creating a multiplier effect that benefits the broader economy.”

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How Midkey works

Midkey is Australia’s first no-monthly-payments loan for responsible homeowners looking to unlock equity or reduce traditional debt payments.

• No monthly repayments during the loan term

• Repay the loan and simple interest when it suits the borrower

• An additional Midkey Deferral Fee may apply, based on property value growth

• Available as a first or second mortgage

• Borrow up to 30% of your property’s value (or 35% if no existing mortgage)

Midkey is available across metropolitan areas in every Australian state and territory except Victoria and the Northern Territory.

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Want to learn more?

• Visit How it works

• Try the Loan Calculator

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