Freeing your home’s value – without creating debt
Equity release products provide you with access to some of the money tied up in your home, while allowing you to remain debt free. In Australia, there are currently two different types of equity release products – home reversion and fractional property transactions. Unlike a reverse mortgage, these types of products are not a loan. They are part-sale property transactions.
Instead of borrowing against the value of your home, you can agree to sell a portion of your home OR the future sale proceeds of your home, in exchange for lump sum funds.
The advantage is that there is no capitalising interest. You continue to own your home and remain living in it – or can even rent it out – with no obligation to sell until you choose.
‘All about equity release and reverse mortgages’
WHAT IS EQUITY RELEASE
Smooth Retirement co-creator and CEO Scott Phillips explains the different types of equity release products, how they work and when and why you might use them.