Equity Release Eligibility Check

A reverse mortgage is a loan designed specifically for seniors who own, or mostly own, their own homes. Unlike other types of loans, there are no regular repayments. You retain ownership of your home and remain living in it. The debt is repaid from the future sale of the home, which is generally when downsizing later in retirement or making the move into aged care.

Equity release products refer to non-loan products such as home reversion and fractional property transactions. They are designed to provide seniors with debt-free funding in retirement.

Instead of borrowing against the value of your home, you can agree to sell a portion of your home / or a portion of the future sale proceeds of your home in exchange for money now. The advantage is that there is no capitalising interest. You continue to own your own home and remain living in it with no obligation to sell until you choose. Other terms and conditions apply, and it is our job to ensure that our clients understand all of the details about the option that we recommend.

A reverse mortgage is the most popular type of equity release product available in Australia. Other equity release products on the market are sometimes called home reversion products. Both types allow you to release some of the wealth contained in your home, but there are some important differences.

Reverse mortgages allow you to borrow funds against the value of your home, with no regular repayments required. The loan is repaid from the future sale of the property, usually when you downsize later in retirement or move into aged care. Importantly, you retain ownership of your home and remain living in it.

Equity release products are not loans. Rather, they are part-sale property transactions. Instead of borrowing against the value of the home, you agree to sell a portion of your home in exchange for lump sum capital. As with reverse mortgages, you continue to own your home and remain living in it, but don’t have any interest capitalising on the debt.