Older homeowners are sitting on unprecedented wealth without the cash flow to match
Almost half of older Australians are now entering retirement with housing debt and some are without enough savings to fund a long, happy and independent life.
Many homeowners over 60 are asset-rich and cash-poor, with most of their wealth tied up in the family home and minimal access to funds to manage daily expenses, let alone unexpected costs.
Nationally, housing debt among Australians aged 55 and over has surged by 600%[1] since the late 1980s, with nearly half of those aged 55–64 still paying off home loans as they approach retirement.
This has coincided with a property boom over the past two decades in major Australian cities which has left many older homeowners sitting on unprecedented wealth – without the cashflow to match.
“Many homeowners have done everything right – worked hard, paid off most of their home loan and raised families, but now they’re squeezed by rising living costs and uncertain income in retirement. They don’t have the cash flow to pay off their debt when thinking about retirement,” Homesafe CEO Dianne Shepherd said.
“For these homeowners, the traditional options such as downsizing can be emotionally distressing or financially unviable and borrowing against the home can lead to compounding debt that puts long-term equity at risk.”
The Homesafe Alternative
Homesafe Wealth Release enables homeowners to access the wealth tied up in their family home with no compounding interest charges, no repayments and no risk of eroding the future equity in the home.
It is not a loan or a reverse mortgage. Instead, Homesafe provides a lump sum in exchange for a capped share of the future sale proceeds of the home. Homeowners remain the full owners of their home with the right to live there for life, as protected in their contract. They can even move out and rent the home if their circumstances change.
“You remain the legal owner of your home and can live out the rest of your life in the home or sell when you decide,” Shepherd said.
“Homesafe is a trusted brand that has been providing asset-rich older homeowners with access to home equity, debt free, for over 20 years. Since the business was founded in 2005, Homesafe Wealth Release has helped over 7700 Australian homeowners unlock the equity in their homes.
“It provides homeowners with a debt-free way to unlock the value in their home today, while giving them confidence to stay in their own home, where they feel safe, supported and in control.
“We’re proud of the trust we have built over two decades and our product is designed with fairness, transparency and customer protection at its core.
“Whether it’s paying off a remaining home loan, covering living expenses, or simply enjoying retirement without financial stress, more Australians are discovering the value of turning to their most valuable asset – their home – without having to sell until a time of their choosing.
Unlock equity across generations and create shared opportunity
The dramatic property transformation since the 1980s tells a story of two very different generations – those who bought when houses were affordable, and those who are now locked out of the market.
But within this challenge lies an opportunity that can benefit both sides of the generational divide. Rather than forcing older homeowners to sell valuable assets or younger buyers to take on unsustainable debt levels, these solutions create pathways that work within the current market reality.
“For homeowners sitting on significant home equity, the question isn’t whether to access this wealth, but how to do so strategically,” Shepherd said.
“The traditional mortgage model – designed for the 1980s market where houses cost three times annual income – is increasingly inadequate for today’s reality.
“This demands innovative thinking about how housing wealth can be accessed, shared, and transferred.
“The Homesafe alternative applies a capped share of the sale proceeds, which means that the customer can plan for their future knowing they will always retain a protected share of the future equity in their home.
“Family members are encouraged to be involved in meetings with Homesafe Specialists to understand how the arrangement can assist the homeowner, but also the protections it may provide to their beneficiaries, down the track.
“This can provide the family with long-term certainty and families can work together to achieve intergenerational wealth transfer for the benefit of everyone rather than just the homeowner’s beneficiaries.”
Debt-free home equity release mechanisms offer a sophisticated alternative that can be tailored to the new dynamics of the Australian property market.
“The families who will benefit most from today’s property market will be those who think strategically about how housing wealth can be accessed, shared, and optimised across generations,” Shepherd said.
“Home equity release solutions can address multiple generational challenges while keeping families together in the journey to not only enhance but also create homeownership opportunities in Australia.”
For more information on Homesafe visit www.homesafe.com.au
Available in most metropolitan postcodes in Melbourne and Sydney. Terms, conditions and eligibility criteria apply
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