Australian aggregator Specialist Finance Group (SFG) has added non‑bank lender Midkey to its national lender panel, giving brokers a new pathway for clients who are asset‑rich but failing traditional serviceability tests.
The move targets a growing cohort of borrowers being declined for top‑ups or new credit even as their home values have climbed to record highs. With rising interest rates eroding borrowing capacity, SFG says more clients across its network no longer fit conventional income‑based models despite holding substantial equity.
“In a challenging property and lending environment, we are focused on ensuring our brokers have access to lenders that can solve real client problems and Midkey is a new way to achieve this,” Buchanan said.
“We are seeing more scenarios where people have strong equity positions, but are being declined for additional funding due to rigid cash-flow-based serviceability assessments. This partnership with Midkey ensures brokers have a credible alternative for those situations.”
Under the arrangement, SFG brokers will be able to refer eligible clients to Midkey from mid‑February, marking Midkey’s first Australian aggregator partnership.
The development comes as house price growth is tipped to cool in 2026, yet affordability remains squeezed by high living costs, rate hikes, and 3% serviceability buffers still capping borrowing power.
Midkey, an NCCP‑compliant lender, offers an Australian‑first home equity release model with no monthly payments that can be used as a first or second mortgage. It is designed for borrowers of all ages who have built up strong equity in their home but cannot access it through traditional lenders.
SFG’s addition of Midkey gives brokers another option for clients who might otherwise be forced to sell, downsize, or defer major life decisions because they cannot secure further finance through mainstream channels.
“Brokers are increasingly seeing responsible borrowers declined by banks for new capital, even when they have built large stores of wealth in their homes,” Young said.
“Our no monthly payments loan was developed for this exact cohort. We are thrilled to have partnered with SFG so more brokers can offer a solution that reflects the financial position many households now find themselves in.”
In December, Midkey secured a $100 million funding facility from global asset manager Insight Investment to expand its Australian loan book. Customers with an existing mortgage can unlock up to 30% of their property’s value, while debt‑free borrowers can access up to 35%. Instead of making monthly payments, simple interest accrues over the borrowing term and a deferral fee is paid at the end of the loan, typically when the property is sold or refinanced.
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