What happens to the house when Mum dies?
The loan is typically repaid from the sale of the home. With the No Negative Equity Guarantee, your family will not owe more than the home is worth.
Your home. Your family. Your estate.
Three things people worry about most. Explained clearly.
Your right to stay in your home.
You have the right to remain in your home as long as you meet the loan conditions. These include:
- Maintaining the property
- Keeping it insured
- Paying rates and other property-related expenses
If you move to aged care or long-term residential care, the loan may become due. We will walk you through these conditions clearly before any decision.
Families decide together.
Equity release is a significant decision. Many of our clients want their family involved in the conversation, especially adult children who may help with the research, attend meetings, or be part of the long-term picture. We encourage this. We do not rush family discussions, and we offer family meetings as part of our service.
Three things that often help:
- How to start the conversation with parents.
- Things adult children often want to know.
- When to involve a financial planner or solicitor.
What happens to your estate.
Equity release reduces your equity over time, because of compound interest. This means there may be less for your family to inherit.
Compound interest impact
A $200,000 loan at 6% per annum could grow to approximately $385,000 after 12 years.
No Negative Equity Guarantee
For regulated contracts, you will never owe more than your home is worth at the time of repayment. This is a legal protection.
Equity protection options
Some lenders offer features that allow you to protect a percentage of your equity for your estate. We will explain which lenders on our panel offer this and how it works.
We strongly encourage independent legal and financial advice for any equity release decision.
If you are researching for a parent.
We see this often. Adult children doing the research, asking the questions, helping their parents understand options. You are welcome here. Our service is designed to support family members as well as the homeowners themselves.
What to ask your parent
- Why are you considering equity release?
- What would you use the funds for?
- Have you talked to your other children about this?
- Do you understand how it affects your estate?
What to ask us
- What lenders do you compare?
- How are you paid?
- What happens if Mum or Dad's situation changes?
- When would you say no?
Common family questions.
Can the bank kick Mum out?
No. Your parent has the right to stay as long as they meet the loan conditions: maintaining the property, keeping it insured, and paying rates and other property-related expenses.
What if Dad needs aged care?
The loan may become due if your parent moves into aged care permanently. We will explain the timing and options before any decision.
Should we get our own legal advice?
We strongly encourage independent legal and financial advice for any equity release decision.
Can I be involved in meetings?
Yes. Family involvement is encouraged. We can hold meetings with the whole family.
Equity release for aged care.
Aged care funding is one of the most common reasons families consider equity release. Refundable Accommodation Deposits (RADs), daily care fees, and home modifications can all be funded through equity release. We can help you understand whether equity release fits with My Aged Care subsidies and other government support.
Important: pension and government benefits
A reverse mortgage may affect your Age Pension or other government benefits depending on how you use the funds. We strongly encourage you to contact Centrelink or speak to a financial adviser to understand this impact before proceeding.
Take it offline.
Some decisions are easier to discuss face to face. Download our printable list of questions to take to a family meeting or to a financial adviser.
Questions to ask — printable PDF
A short, plain-English checklist for family meetings, accountants, solicitors, or financial advisers.
Download the questions sheet (PDF)