Home Reversion Schemes Australia

A home reversion scheme is quite different from a reverse mortgage; rather than being structured as a loan, it's a contract for the partial sale of your home. As such, you don't need to repay it, however the payment you receive for the portion of the home sold is generally significantly lower than the market value.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

The benefits of a home reversion scheme include:

it does not create a debt

there are no repayment obligations while the home is occupied by at least one of the parties to the reversion contract

you can repurchase the sold share at any time

you don’t need to sell your home if you are moving into residential aged care.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

As well as having upsides, home reversion schemes also have a number of downsides, including:

you are no longer the sole owner of your property

limited availability – unavailable outside major cities in certain states and may not be available on homes that are not freestanding

you forgo any future growth in the value of your home relating to the equity sold under the reversion contract

less transparent fees and costs, which can be complex and difficult to understand

the portion of the home sold is generally at a significant discount to its value.

It's important to understand how different mechanisms used to access the value in your home can affect both your long term retirement funding and home equity over time.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Using a Household Loan, which is a type of reverse mortgage, you can access a portion of the equity built up in your home to boost your long term retirement funding. You retain full ownership of your home and enjoy a range of consumer protections. A Household Loan can provide capital or income, or a mix of the two.

Importantly, home reversion schemes have limited availability; they are generally unavailable outside major cities in certain states and may not be available on homes that are not freestanding. While a Household Loans is subject to some restrictions, it is generally more widely available to retired homeowners.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™