Cash Flow Equaliser
What it is…
The Cash Flow Equaliser Loan (CFE) lets the borrower choose their own repayment. By using a small part of the equity in a home or investment property borrowers can set up a flexible repayment structure to suit their situation. The CFE is designed for anyone looking to take advantage of increased cash flow in a safe and controlled manner.
How it works…
Borrowers can reduce their monthly home loan repayment for any worthwhile purpose for a period of up to 3 years. A full repayment is made during the reduced repayment term however only part of the payment has to come from the borrower.
To make this work the CFE Loan has two accounts…
1. Home Loan Account:
A fully featured 30 year home loan with redraw, phone & internet banking etc.
2. CFE Repayment Account:
A fixed limit capitalizing repayment account. The shortfall of the home loan repayment is transferred from this account each month for the duration of the reduced repayment term.
At the end of the reduced repayment term the borrower has the option of negotiating another reduced repayment term or collapsing the CFE repayment account into the home loan.
A reduction of up to .4% pa off our standard variable rate home loan can be negotiated at the end of the CFE term.
