Home Equity Release
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Explore home equity release options and how they impact on your long-term outcomes.
This demo is intended for industry professionals only. It can be fully tailored and white-labelled to your organisation’s brand, design system, and compliance requirements.
Debt-Free Equity Release
Capacity
Understand how much you might access and what it means to share future home value.
- Accessible amount
- $200,000
Important: This capacity is an estimated amount you might be able to access through a debt-free equity release provider. This does not reflect the long-term cost or outcomes of the arrangement. Actual offers and eligiblity will depend on the provider and their assessment.
Key Features
A brief summary of the key benefits and trade-offs of a debt-free equity release product.
Benefits
- Access cash without selling or moving
- Unlock part of your home's value while continuing to own and live in it.
- No compounding loan balance
- There is no traditional loan, so no interest is added to a growing debt over time.
- Certainty over the maximum share you give up
- The share you sell (e.g. 40%) is the most the provider can receive when the home is eventually sold. You retain the remaining share (e.g. 60%). In some cases this share may increase through provider rebates or adjustments, but it will not fall below the agreed level.
Trade-offs
- You sell a share of your home at a discount
You receive a lump sum today in exchange for the provider taking an agreed share of your home's future sale proceeds. The cash you receive upfront is less than the current value of the share you sell.
For example, if your home is valued at $500,000 and you sell a 20% share, you will receive less than $100,000 today. This discount helps compensate the provider for advancing the money now, not charging you rent on the share you've sold, and abosrbing risks such as how long you stay in the home and when (and for how much) the property is eventually sold.
- Less certainty around the effective cost
You know the maximum share of your home you’ve sold, but you don't know the effective dollar "cost" until the property is sold.
The provider shares in both upside and downside outcomes. If your home grows strongly in value, the amount they receive increases and so does your effective cost. If your home falls in value or grows less than expected over the longer term, the provider shares that outcome too, reducing your effective cost.
Home Equity Access Scheme
Home Equity Access Scheme (Government Scheme)
A government run reverse mortgage scheme designed to boost retirement income for homeowners of Age Pension age or above.
HEAS eligibility requires Age Pension age. You may be eligible in 2 years at age 67.
Key Features
- Lower interest rate compared to commercial providers (currently 3.95%).
- Fortnightly income payments and/or lump sum (twice a year) up to 150% of Age Pension entitlement (less any Age Pension received).
- Primarily designed as a retirement income top-up scheme. Does not provide large lump sums which may be needed to clear sizeable debts or fund large one-off expenses.
- Accepts most freehold properties across Australia (wider acceptance crieria than commercial providers).