Home equity options explorer
Pick your main goal and we'll explain, in plain English, which of the seven ways to use home equity in retirement usually fit. For the borrowing limits that apply to your age and home, contact us.
Tell us a little (all optional)
Your answers only tailor the explanation. Nothing is calculated.
The seven options
Choose a main goal to see which of the seven options usually fit. Every option has trade-offs for tax, the Age Pension and your estate.
Stay as is
Keep the home and your current arrangements. Nothing changes for your estate, but the equity stays locked in the home.
Refinance
Move or restructure an existing loan. It needs regular repayments, so lenders will look at whether your retirement income can cover them.
Home Equity Access Scheme
A Government loan from Services Australia for people of Age Pension age. Payments are usually fortnightly; interest compounds and the debt is repaid when you sell, move into care or pass away, unless you repay earlier.
Reverse mortgage
A loan from a private lender with no regular repayments required: it is repaid when you sell, move into care or pass away. Interest compounds, so the balance grows over time and reduces what is left for your estate.
Downsize
Sell and buy or rent somewhere smaller. It can release equity without a loan, but moving and stamp duty costs, and pension effects, need checking first.
Rent part of the home
Take in a lodger or rent out a granny flat. It adds income but can affect tax, the main residence exemption and the Age Pension.
Family help
A family member contributes, lends or buys in. It works best with a written agreement and independent legal advice for everyone.
How much you can borrow depends on your age, your property and the lender. Contact us for the age-based borrowing limits available to you.
Ask us about your options
Leave your details and we'll contact you at a time that suits.
We'll explain your options and the age-based limits lenders offer. Before any reverse mortgage we must give you projections using ASIC Moneysmart's reverse mortgage calculator.
The Government's Home Equity Access Scheme
Before a private reverse mortgage, check the Home Equity Access Scheme. It is a Government loan run by Services Australia for people of Age Pension age who own Australian real estate, paid mostly as fortnightly payments. Interest compounds, voluntary repayments are allowed, and otherwise the debt is repaid when you sell, move into care or pass away. Services Australia sets the eligibility rules and current terms.
Home Equity Access Scheme at Services AustraliaSuper, Centrelink and aged-care fee advice is referred to a licensed financial adviser.
Want the full comparison first? Read the home equity in retirement guide.
General information only, not a credit assessment or advice. Credit Representative 517980 of Global Mutual Funds Pty Ltd (ACL 222640).