THERE are two forms of equity release options for over 60s: debt free equity release or reverse mortgages. With a debt free option, homeowners can access a lump sum cash amount today in exchange for selling a capped share of the future sale price of their home. A reverse mortgage, is a debt product, which provides seniors with the ability to borrow against the equity in their home.
Some key questions to ask when enquiring about an equity release solution:
1. How much can I access?
2. How can I determine how much equity I will keep in future?
3. Can I receive more than one lump sum?
4. How is the value of my home determined today?
5. What are the fees, charges or interest rate applicable?
6. Do I need to maintain my home?
7. What happens if I need to move into aged care?
Homesafe Wealth Release® is a debt free equity release solution and is not a loan or a reverse mortgage. With Homesafe, a Homeowner enters into a contract to receive a payment from Homesafe now, in exchange for selling a share of the future sale price of their home. The share of the future sale proceeds not sold to Homesafe is always protected in the future, irrespective whether the value of the home goes up or down over time.
"The Homesafe equity release product was designed to enable senior homeowners to access the wealth tied up in their homes by selling a share of the future sale proceeds of their home," explains Homesafe General Manager Dianne Shepherd.
"In essence, rather than down-sizing and selling their home today as a whole asset, with Homesafe the homeowner can sell a part of their home today, and stay living in the family home until they choose to sell and move."
To find out how Homesafe Wealth Release can help you, click HERE.
