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grossreal, can you link to the article as it was my understanding that superannuation and other long term funds were funding the efm's.

Not as well as they used to. The margins they make on loans are getting tighter and tighter, international banks are offering mortgages without branch networks (lower costs), etc. I guess the banks have to do something to keep their heads above water :D

Sorry, but how do you figure? As I understand it the bank will lend to a maximum 75% standard loan, the EFM supplies a maximum 20%, so there is the 5% and fees that the borrower has to come up with. If the borrower couldn't save a deposit, wouldn't it make more sense that would be after a...

Some good points. Hadn't thought about the 40% CG that is refinanced being an extra amount that would need interest paid on it. I would say that a lot of people put little thought into the types of loans they take out, whether it be the EFM, a 100% loan or a revolving line of credit. Any...

Okay here is my scenario (mum and dad investors scenario), will try and keep it fairly open to avoid it being a niche group of people: Bazza and Shazza are a defacto/married couple living in a home they bought 6 months ago for $240,000. The house they bought is relatively new and while it will...

That's true, but there has been too much scrutinising without users doing their own homework like reading the official site/fact sheets (is that too much to ask?). I have only seen well thought out posts from around half the users that have replied, the rest that have replied have been arguing...

With the way most users so far have torn apart the product (some without even reading about it first), it does not surprise me that the original poster would try and steer clear of the thread. I can see the original poster answering the questions and then having barrage more obscene questions...

I find your posts extremely difficult to follow grossreal, as you linked in your article the efm is supplied by Rismark, but offered through Adelaide Bank. Not sure if it is covered by the consumer credit code. Currently only offered in metro areas as you pointed out, I believe 80% of...

What determines that a property is out of someones price range? My understanding is that the 100% loan product hasn't been around for long, so prior to the 100% loan, people were only borrowing up to 80/90%? So by using a 100% loan today are people buying out of their price range? You can now...

I have put forward some good situations, you are just shooting them down by saying the home buyers shouldn't buy out of their price range. That is specifically what this product is designed to do. If you don't like the other situations I have put forward, have a look at post #4 I made in this...

If you are buying a new or close to new home, all these home improvements (and I am talking about renovations, not general maintenance and upkeep) you are talking about may not be required (if planned well interior decor could last 25 years, the length of the loan). As I said it is not going to...

Happy to hear what you have to say, why would I put you on ignore? You certainly are entitled to your opinion as am I and I'm all for thought out discussion of this product :) You are right when you state there will be a lot of unhappy people at the end of it and unhappy with the renovation...

They have an interest in your home, of course they are not going to let every tom, dick or harry that thinks he is a handyman putting on that second level. Seriously it is common sense that they would want to know what renovations are being made and that they are all council approved, etc...

Actually with renovations over $20k, you put in the application, have the property valued before and after the work and this increase is taken into consideration when the final payout of the efm is calculated. http://www.efm.info/qa/home-improvements.aspx I think those that are putting the...

Official site here: http://www.efm.info/ My understanding of the product was that the amount financed by the efm does not have to be serviced (ie it is not taken into consideration when applying for further credit), though I could be wrong. If I am right, then this sort of product could give...