Home Equity Release: A Smart Way to Fund Retirement in Australia
If you’re retired (or getting close) and feeling the pinch with rising costs, there’s a way to get extra money without selling your home. It’s called home equity release, and it basically lets you use the value of your home to top up your retirement income.
Let’s break it down in plain English.
What Is Home Equity Release?
Your home is worth money — even if you’re not planning to sell it. Home equity is the part of your home you fully own. With equity release, you borrow against that value while still living there.
It’s like unlocking some of your home’s value to use now, instead of later.
Is It a Good Idea for You?
It might be — but here are some things to think about:
- Will it mess with your Age Pension? Some options don’t, but check first.
- Are you okay with leaving a bit less for your kids?
- Planning to stay in your home for the long haul? That helps.
- Have you spoken to a financial adviser? That’s always smart.
What Are Your Options?
Here are the 3 most common ways Aussies release equity:
Reverse Mortgage
You borrow money using your home as security. You don’t make repayments while you live there — the loan is paid back when you sell or pass away.
✅ Stay in your home
✅ Choose lump sum or regular payments
⚠ Interest adds up over time
Home Equity Access Scheme (HEAS)
This is a government program that gives you extra cash every fortnight using your home as a guarantee.
✅ Low interest
✅ You can get it even if you’re not on the pension
✅ Safe and reliable
Home Reversion
You sell part of your home (usually below market value) to a provider, get cash now, and keep living there for life.
✅ No loan or interest
⚠ Less common in Australia
How Can It Help?
People use home equity for things like:
- Boosting retirement income
- Covering medical or aged care costs
- Paying bills or fixing up the house
- Just enjoying life with less stress
Final Thoughts
Yes, you can use your home to help fund your retirement — and you don’t have to sell it. Just make sure it’s the right move for your situation.
Always speak to a financial adviser before deciding. And if you need help figuring it out, Efficient Capital can guide you through the best options.
Your home is more than just a roof over your head — it could also help you live more comfortably in retirement.