Debt Free Equity Release solutions have been used by thousands of Australians for many years, to access the equity in their home without needing to sell their home or go into debt.
The term "Debt Free Equity Release" refers to any strategy allowing homeowners to access the equity in their homes, without needing to downsize or take out a loan or a reverse mortgage. For over 16 years the popular debt free option, Homesafe Wealth Release™, has provided homeowners with a smart option to access the funds they need to provide financial peace of mind in retirement.
The concept attracts many misconceptions, and it is important homeowners seek out accurate information to make an informed decision. Some of the most common misconceptions include:
1. You may lose your home: Equity Release solutions protect the homeowner's rights to stay in their home if they wish. With a Homesafe Wealth Release™ Contract you retain ownership over the home and have complete control over when you choose to sell. Homesafe cannot require you to sell your home. This right extends to all owners of the home, even if one party passes away or if the homeowners have moved into aged care.
2. You won't be able to leave an inheritance once you have accessed the equity in your home: This is an understandable fear given common concerns that the amount 'owed' under other debt-based solutions, grows over time.
With the Homesafe Wealth Release™ Contract, the homeowner can protect a percentage of the future sale proceeds of their home and always keep this protected, for their Estate. As the Homesafe Contract is a shared sale proceeds agreement, Homesafe is only entitled to the percentage share you have sold and whatever is not sold is fully protected, under the binding Contract, for your beneficiaries.
3. Debt free equity release products cost too much as you lose the future capital growth in your home: This is a common misconception. The Homesafe Wealth Release™ Contract has been specifically developed to provide a fair outcome for all parties. How the capital growth is shared with all parties is set out in the Contract.
4. Only regulated equity release products are safe: It is true that loans, such as reverse mortgages, are heavily regulated by ASIC due to concerns regarding such financial products in the past. Homesafe Wealth Release™ is not a financial product. As a shared sale proceeds agreement there are significant protections incorporated into the Contract - just like the same protections you received when you bought (or sold) a home in the past. With the additional requirement for Homesafe customers to engage a Legal Representative to provide them with independent legal advice, a Homesafe Contract provides significant rights and protections to the homeowner which will remain in place for many years into the future.
Homesafe Wealth Release™ is not a loan or a reverse mortgage, but a way to sell a share of the future sale proceeds of your home for a cash payment you need today*, whilst remaining the owner of your home until you are ready to sell your home. There are no repayments, and the rights of all homeowners remain protected until the surviving party has passed away. It is important that you seek your own independent advice in relation to the Homesafe Contract. To see how Homesafe can assist you to find financial peace of mind in retirement, please call Homesafe on 1300 307 059 or visit our website homesafe.com.au.
*Terms, conditions, and eligibility criteria apply. Homesafe Wealth Release is available in 90% of eligible postcodes in Melbourne & Sydney.