Equity Release · Updated October 2026
Reverse Mortgage or Equity Release? Ask the Bigger Question First
Before you choose between a reverse mortgage, the Government’s Home Equity Access Scheme or selling a share of your home, ask why you need the money and what happens next.
Here is how the options compare in 2026.
What Is the Money For?
If you need money to live on, or to repair or adapt your home, it makes sense to look at the options. But first be clear on the need: is it a one-off cost, a top-up to your income for a few years, or a long-term shortfall?
The answer changes which option fits, and whether borrowing against your home is the right move at all.
Three Ways to Release Equity
Reverse mortgage
- A loan from a lender, secured on your home
- No repayments while you live there
- Interest compounds, so the debt grows over time
- Rates are usually higher than standard home loans
- No negative equity guarantee required by law
Home Equity Access Scheme
- A Government loan through Services Australia
- For people of Age Pension age (67+)
- 3.95% a year, compounding fortnightly (2026)
- Fortnightly payments and limited lump sums
- No negative equity guarantee
With a home reversion (sometimes sold as equity release), you sell a share of your home’s future sale price for a lump sum today. There is no interest, but the share you give up is worth more than the cash you receive, because the provider is paid from the future value.
Use the Moneysmart reverse mortgage calculator to see how the debt could grow, and read the Services Australia HEAS page. Get independent legal and financial advice, and involve your family.
Could Your Home Do More for You?
Borrowing against your home keeps you in it, but it uses up the equity you or your family may need later. Before you commit, look at whether the home itself can do more for you:
- Sell for more: add value with the right improvements before you sell, then downsize with cash to spare.
- Build on your land: a backyard home or dual occupancy could release equity and let you stay in your street.
- Downsize and top up super: from age 55, up to $300,000 each from the sale can go into super.
Read more on reverse mortgages and the Home Equity Access Scheme, building or renovating and what your home is worth.
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Not Sure Which Way to Go?
Tell us about your home and what you need the money for. We will show you the options side by side so you can make an informed decision with your adviser.
Prefer to call? 0413 108 125
Sources: Services Australia: Home Equity Access Scheme; Moneysmart: Reverse mortgage calculator; Moneysmart: No negative equity guarantee. General information only, current as at October 2026. Rules change: confirm your position with a licensed adviser.
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