How is Homesafe Wealth Release different to a Reverse Mortgage?
There are currently two forms of Equity Release products in Australia. Home Reversion (or Debt Free) Products and Reverse Mortgages.
Homesafe Wealth Release is a debt free solution and is not a Reverse Mortgage.
There is no capitalising interest.
Homesafe Wealth Release is a part-sale property transaction, where a Homeowner enters into a deferred terms Contract of Sale to receive a lump sum 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 is always protected in the future, irrespective whether the value of the home goes up or down over time.
For more information about Equity Release products, visit the ASIC MoneySmart website by clicking here.