Equity Release Explained
There are two types of equity release products:
- Reverse Mortgages – You use the equity in your home to borrow money
- Home Reversion Schemes (or Shared Sale Agreement) – you sell a portion of the equity of your home
Equity release products are designed for the ageing population who use the equity, or value, in their property to raise cash for any worthwhile purpose, for example, to make retirement a bit easier, pay out existing mortgages or unexpected expenses, or to fund accommodation deposits for aged care facilities, or simply to go on holiday.
If you’re looking for extra money to pay out existing mortgages or other unexpected expenses, start home improvements or just make retirement a little easier, it could be a welcome boost to your bank balance.
In the past, there was often no alternative but to sell and downsize. However, these products offer another option particularly for those seniors who have significant untapped wealth tied up in the value of their home. With residential property being the largest asset class in Australia, and with a high proportion of Australian seniors owning their own homes, Equity Release has become widely recognised and considered when comparing the costs of downsizing.
Download a copy of our Reverse Mortgage Fact Sheet here.