More Australians are reaching retirement while still carrying housing debt, as rising living costs and growing pressure on retirement savings leave many older homeowners asset rich but cashflow poor.
Recent research shows only 66 per cent of recent Australian retirees own their home outright, while around 15 per cent of households aged 65 and over continue to carry housing debt. At the same time, the annual cost of a comfortable retirement has climbed to almost $56,000 for a single homeowner and more than $76,000 for a couple, placing increasing pressure on household budgets.
In response to growing demand from regional homeowners looking to unlock the wealth tied up in their homes without taking on additional debt, Homesafe Wealth Release is expanding its in-home consultation service across Ballarat, Sunbury, the Macedon Ranges, Castlemaine, Daylesford, Hepburn Springs and Greater Bendigo.
The expansion marks one of the biggest milestones in Homesafe's 21-year history. Since launching in 2005, the company has helped more than 9,000 older Australians access equity from their homes while continuing to live there, providing a debt-free alternative to traditional equity release products.
The regional rollout follows Homesafe's successful expansion into Geelong, Victoria. Until now, many homeowners living outside metropolitan Melbourne and Sydney were outside the company's service area.
Analysis by the Bankwest Curtin Economics Centre (BCEC) indicates Australians aged 65 and over now hold almost a third of the nation's household wealth — about $5.96 trillion — much of it concentrated in property. Across regional Victoria, rising property values have increased household wealth on paper, yet many older homeowners remain cashflow constrained. The median regional Victorian house price reached approximately $640,000 in the March quarter, around $60,000 higher than a year earlier.
Homesafe CEO Dianne Shepherd said the expansion reflected a growing shift in the financial challenges facing older Australians.
"People often assume that if someone owns a valuable home, they're financially comfortable. Increasingly, that's simply not the case," Ms Shepherd said.
"We're speaking with more homeowners who have built significant wealth through decades of home ownership but are finding it harder to keep pace with everyday expenses, home maintenance and the rising cost of living.
"In regional Victoria, we've seen demand continue to grow from homeowners wanting to understand how they can access some of that wealth without taking on more debt or being forced to sell the home they've spent a lifetime building."
Unlike reverse mortgages, Homesafe Wealth Release is not a loan and does not charge interest or require monthly repayments. Homeowners remain the legal owner of their property and continue living in their home for life in exchange for an agreed fixed share of the property's future sale proceeds.
Rather than requiring customers to travel to a branch or navigate call centres, Homesafe consultants visit homeowners in their own homes to explain the process, answer questions and provide personalised guidance.
Ms Shepherd said the regional rollout was expected to be the first of several planned expansions.
"We know these financial pressures aren't unique to Melbourne or Sydney. There are homeowners across regional Victoria and New South Wales facing exactly the same challenges, and this expansion is about making sure they have access to the same personalised service and financial options."
Eligible homeowners in the newly expanded service areas can arrange an in-home consultation by calling 1300 306 059 or visiting www.homesafe.com.au.
Homesafe Wealth Release is now available in the following regional Victorian postcodes — Ballarat: 3350 (Ballarat Central, Bakery Hill, Lake Wendouree), 3355 (Sebastopol, Redan), 3356 (Ballarat East, Invermay Park); Sunbury: 3429; Macedon Ranges: 3437 (Gisborne South, New Gisborne), 3440 (Gisborne), 3442 (Riddells Creek), 3444 (Kyneton); Mount Alexander: 3450 (Castlemaine); Hepburn: 3460 (Daylesford, Hepburn Springs); Greater Bendigo: 3550 (Bendigo, Golden Square, Ironbark), 3555 (Kangaroo Flat), 3556 (Eaglehawk).
This article is provided for general information only and does not constitute financial, legal, or taxation advice. Terms, conditions and eligibility criteria apply.
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