How a home equity release loan compares to other options
A home equity release loan or reverse mortgage is not for everyone. When considering if a reverse mortgage might be right for you - it's important to think about the alternative funding options that might be available to you and whether these might suit your needs better.
Alternative funding options
Regular home loan
- Repayment — requires regular monthly repayments, which can be challenging when you have a fixed income or pension
- Eligibility — if you need to apply to increase your home loan to cover expenses, you will need to provide proof of income
- More cost effective — typically a regular home loan will have a lower interest rate than a reverse mortgage
Downsizing or selling your property
- Moving — requires selling your current home, possibly buying a smaller one and missing out on potential property appreciation
- Market conditions and selling costs — you may not get the desired price for your home depending on the market and you will incur selling and moving costs
- Lifestyle changes — potentially moving away from your community and familiar surroundings
Personal loan
- Repayment — requires regular monthly repayments, which can be challenging when you have a fixed income or pension
- Interest rates — typically higher interest rates than a reverse mortgage as there is no security required
- Borrowing limits — usually limited to smaller amounts than what you can access with a reverse mortgage
Superannuation or savings withdrawal
- Impact on future — reduces the funds available for future needs
- Tax implications — may have tax implications depending on the type of savings and withdrawal amounts
- Growth potential — you lose the potential growth of these assets over time
Alternative funding options at a glance
Inviva's home equity release loans
Regular home loan
Personal loan
Downsize/sell property
Superannuation or savings
Speed of access to funds
Potential for continued asset appreciation/growth
Access funds without needing to move
Preserves funds available for future needs
No regular repayments required
No proof of income required
Why choose Inviva?
- Expertise & support — Our team has years of experience and offers personalised support
- Transparent costs — No hidden fees, and you know all costs upfront
- Flexible options — Choose how you access the funds — as a lump sum, regular income payment or a line of credit, and enjoy the flexibility to repay early with no early repayment fees
- Quick access — Fast approval and disbursement mean you get funds when you need them
Explore how a home equity release loan with Inviva can help you enjoy a more secure and fulfilling retirement. Contact us to explore your options.
