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With an Zero20 you:
- Have full title to the home - it remains in your name (subject to a first mortgage granted to a traditional home loan lender and a second mortgage granted to an Zero20 lender);
- Can refinance (ie, discharge) the Zero20 loan at any time at your discretion;
- Only have to repay it if:
- you sell your property;
- the Zero20 gets to the end of its 25 year term;
- the property passes to your estate;
- your property changes hands for any other reason; and
- you are in default.
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| You can refinance your Zero20 or repay it early--the choice is yours--but you will not be able to share in any decrease in property value at the time you repay if you do not actually realise the loss (ie, by selling your property). |
| While the Zero20 lender will share in real losses, they will not share in "paper" losses that have not actually been realised in a proper third-party sale. |
| In situations when you repay the Zero20 without selling your property, and the value of your home has declined, you would normally just repay the original dollar value of the loan amount with no interest whatsoever. |
| And don't forget, except in extreme circumstances (for example if your property is destroyed and is uninsured or if you are in default), you will always get a minimum 60% of any increase in the value of the property. |
| We strongly recommend that you obtain independent legal and financial advice in relation to this Zero20 loan prior to entering into the Zero20 loan contract. |
Please carefully read and review the Zero20 Disclosure Document. This website does not take into account your personal objectives, financial situation, or particular needs. You should obtain a copy of the Zero20 Disclosure Document and the Zero20 Terms and Conditions Booklet and consider them before making a decision about whether to enter into a Zero20 Home Loan.
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