I'm looking to buy my first home and have been doing my research on home loans and came across this product called Aspire from **Company Name Removed** and wanted to get everyones thoughts on it. Has anyone dealth with them before? Basically the loan has 3 components:
1. Home Loan (standard variable rate)
2. Investment Portfolio ASX 300
3. Gap Protection
Here's a brief rundown of it. The home loan is like any standard variable rate home loan that you obtain with any of the big 4 banks, however 30% of the monthly principal repayment will be automatically invested into the ASX 300 investment portfolio. This means you won't have to fork out extra money to invest in the ASX 300. The income generated from the ASX 300 investment portfolio is used to pay down the loan so that you end up paying off your mortgage quicker.
However the thing that caught my attention was that should the investment portfolio perform poorly and is less than the outstanding loan balance at loan maturity then the built in Gap Protection will kick in and repay the difference. This In short it allows you to pay off their mortgage whilst simultaneously accumulate wealth for the long term with no downside risk.
The company is called **Company Name Removed**: http://www.*****************************/