Home Equity Release
The federal government has a Home Equity Access Scheme where if you own your own home and are pension age or over then you can get 50% of your pension as a loan (on top of your pension). The quote from the governments website is: "Your combined loan and pension payment each fortnight can’t be more than 150% (1.5 times) of your maximum pension rate". An option if you want the equity as a lump sum is 2 lump sums per year totalling up to 50% of the full pension. If your pension is $1,000 a fortnight then you can get $1,500 ($1,000 pension + $500 loan) a fortnight. If you get lump sums per year that an extra $13K per year.Reverse Mortgage Calculator
Calculate how much you can get as a lump sum reverse mortgage by using the equity in your existing home to build a granny flat. You get a reverse mortgage through a financial institution like a bank (as opposed to the above Home Equity Access Scheme which is through your pension). You can generally withdraw 15-20% of the equity in your home if you are over 60 years old. As a guide this amount could be 1% higher for every year after 60. So, at 65, the most you can borrow will be about 20-25%.| Lump Sum Amount Available On A Home Worth $1,000,000 At age 60 you can get between 15% to 20% lump sum |
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| Lowest amount you could get (15%): | $150,000 |
| Mid range amount (16%): | $160,000 |
| Mid range amount (17%): | $170,000 |
| Mid range amount (18%): | $180,000 |
| Mid range amount (19%): | $190,000 |
| Highest amount you could get (20%): | $200,000 |