The Australian government's spending on home care and support services jumped 89% between 2017–18 and 2023–24, showing a clear preference among older Australians to age in place. For many Melbourne homeowners, however, funding the high costs of care, either at home or in a facility, leaves them with a tough choice: sell the family home or take on debt. Because of this, solutions that unlock home equity without a sale are becoming more popular. One of these, the Australian-owned Homesafe Wealth Release, has helped over 9,000 customers access their property wealth during its 20-plus years in operation.
Is Homesafe Wealth Release just another reverse mortgage?
No, and that’s a common misconception. Homesafe Wealth Release works differently from a reverse mortgage or the government's Home Equity Access Scheme (HEAS). Those products are loans where interest builds up over time, causing the debt to grow and eat away at the homeowner's remaining equity. Homesafe Wealth Release is a debt-free way to release equity through a part-sale property transaction. Homeowners sell a share of their home's future sale value in exchange for a lump-sum payment today. No debt is created, there is no interest to pay, and the homeowner's unsold share of the property value is protected. This structure offers a path to financial certainty without the stress of accumulating debt.
How much money can I get to pay for aged care?
You receive the funds through Homesafe Wealth Release as a single lump-sum payment, from $25,000 up to $3,000,000. It’s a way to cover major upfront costs, like a Refundable Accommodation Deposit (RAD) for residential aged care. With RADs in Melbourne often falling between $350,000 and $750,000, a large lump sum is frequently needed. The exact amount a homeowner can access depends on their age and property value. The first step is a free, no-obligation eligibility check to see what funds might be available. This gives retirees a clear path for financial planning when they're facing large, immediate expenses.
Can I still live in my home if I use Homesafe to fund aged care?
Yes. A core part of the Homesafe Wealth Release agreement is that it protects your right to live in your home for as long as you choose. You remain the legal owner of the property and keep full control over when the home is eventually sold. The Homesafe Contract is written to secure this right of residency. What's more, you are not required to sell the property if you need to move into permanent residential aged care. This provision means the home can be kept, maybe for a spouse to continue living in or as an asset for the family. This can ease one of the biggest worries people have when considering downsizing alternatives in Melbourne.
Homesafe Wealth Release vs. Other Equity Access Options
When looking at aged care funding options, it helps to understand the key differences between the products available. The main distinction comes down to debt.
- Debt Structure: Reverse mortgages and the government's Home Equity Access Scheme are loans. Interest accrues and compounds, so the amount you owe grows over time. Homesafe Wealth Release isn't a loan, so there is no interest or repayments. It is simply a sale of a portion of your home's future value.
- Impact on Equity: With a reverse mortgage, the growing loan balance can seriously reduce the net equity left in your property, especially in a flat or declining market. With Homesafe Wealth Release, the percentage of the home's future value that you don't sell is always protected, preserving that share for you or your estate.
- Ownership and Control: Downsizing is another strategy, but it means selling your entire property and moving. Using Homesafe Wealth Release, you remain the legal owner on the title and keep control over the property and when it is eventually sold.
Why are more Australians considering wealth release products?
The growing interest in wealth release products lines up with clear economic and demographic shifts. Data from the Australian Institute of Health and Welfare in 2023 shows the workforce participation rate for people aged 65 and over rose from 6% in 2001 to 15% in 2021, which suggests many are working longer to cover their financial needs. The rising cost of living and healthcare also puts a strain on traditional retirement funds.
On top of this, market reports suggests that reverse mortgages currently tap into only about 1% of the potential equity available to eligible Australian households. This points to a huge, underserved market of homeowners who are "asset rich, cash poor" and looking for secure, long-term financial solutions to fund their retirement and care without taking on new debt.
What is the onboarding experience with Homesafe Wealth Release?
The process is straightforward and transparent, with safeguards built in for the homeowner and a no-obligation in-home meeting with a Homesafe Specialist who can answer all of your questions about Homesafe.
If you decide to move forward, a formal valuation of the property is arranged. A critical step is getting independent legal advice to ensure you fully understand the contract and what it means to protect your interests.
Once everyone is satisfied and the documents are signed, you receive the lump-sum payment. This focus on independent advice and a clear process gives homeowners confidence when making major financial decisions about their most important asset.
Who is the ideal candidate for Homesafe Wealth Release?
This solution is a great fit for a certain type of senior homeowner such as:
- Needs a large lump sum to cover a major expense, like a RAD or significant in-home care.
- Is 'asset rich but cash poor,' with most of their wealth tied up in their property.
- Wants to avoid taking on new debt with compounding interest.
- Hopes to stay in their own home and community, without having to downsize or sell before they're ready.
For these homeowners, the ability to unlock home equity without selling and without a loan can align perfectly with their long-term financial and lifestyle goals.
The challenge of funding aged care is a major financial hurdle for many Melbourne families. The decision involves balancing immediate cash needs with the desire to keep the family home and preserve future wealth. The question for many isn't *if* they should access their home equity, but *how* to do it in a way that provides security and control. For homeowners exploring their options, a good next step is getting a clear, data-driven assessment of what their property could provide.
Terms, conditions and eligibility criteria apply.
