Reverse Mortgages are a regulated credit product and the funding is based on interest-bearing debt which, in most cases, is calculated using a variable interest rate and therefore, the cost of a reverse mortgage will be impacted by future interest rate movements.

Equity Release Agreement is a regulated financial product that allows the homeowner to sell a portion of their home and pay fees (a bit like paying rent) on the portion they have sold. Additional amounts of home equity are deducted each time the fee falls due. Although the cost of an Equity Release Agreement will depend on future movements in the value of the property, the fee percentage is fixed and will not vary over the life of the agreement.

Home Reversion is a debt-free but un-regulated option that allows homeowners to sell a share of the future value of their home. The home reversion provider pays a reduced amount for the share they purchase and whilst the homeowner doesn’t pay interest, the home reversion costs them the difference between what they sell the share of their home for now, and what it’s worth in the future. The cost of a home reversion will depend on future movements in the value of the property.

Home Equity Access Scheme is a voluntary non-taxable Australian Government loan offering that allows seniors to boost their retirement income by unlocking the equity from their property. Applicants must be of Aged Pension age and receive (or are eligible to receive), a qualifying pension.