Equity Release Loans
Equity Release Loans can be a great way for homeowners to access the value of their property without having to sell or move.
As a private lender, Maxiron Capital offers flexible equity release solutions, a way for clients to use their property’s equity when traditional bank funding isn’t an option.
We can support clients to explore equity-release loans that fit their needs.
What Is an Equity Release Loan?
Home equity is the amount of your property’s value that you own outright, minus any mortgage. An Equity Release Loan allows you to borrow against that value and still own your home.
Through equity release, you can get funds in ways that suit your financial needs—whether to top up your retirement income, cover unexpected expenses or invest in new projects. The amount available will depend on your age, property value, and the type of equity release option chosen. Choosing an equity release loan is a big decision that can impact family members or those living in the property so it’s recommended you seek independent advice and read the terms carefully.
Types of Equity Release Options
Reverse Mortgage
A Reverse Mortgage allows homeowners, often over 60, to borrow against their home equity without selling the property. This type of loan doesn’t require monthly repayments. Instead, the loan balance grows over time with interest compounding on the amount borrowed.
The loan is repaid from the sale of the property if the homeowner:
- Sells their home
- They move out of the home, or
- They die
Home Reversion Plan
With a Home Reversion Plan, homeowners can sell a share of their home’s future value for a lump sum or through regular payments. The homeowner retains the right to live in the property but when it’s sold, a predetermined portion of the sale proceeds goes to the lender.
As no interest accrues, this can get you access to a larger sum than other equity release options.
Equity Release Loan or Home Equity Loan
An Equity Release Loan or Home Equity Loan allows you to borrow a lump sum or set up a line of credit based on your property’s equity and repay it over time.
Unlike Reverse Mortgages, this loan type usually involves monthly repayments although some may offer interest only for a set period. Homeowners can use these loans to fund renovations, debt consolidation, or investments.
Line of Credit (LOC) or Home Equity Line of Credit (HELOC)
A Line of Credit secured against home equity is like a credit card. Borrowers can access funds up to a set limit and only pay interest on what they borrow. This can be useful for ongoing expenses or unexpected costs as it offers more flexibility than other loan types.
Each of these equity release options has different financial implications. Speak to a knowledgeable advisor to work out which one suits your financial situation, property value, and goals.
Benefits of Equity Release Loans
- Cash Without Selling the Property – Equity Release Loans can release the funds tied up in your property, without selling or relocating.
- Top-up Retirement Income – These loans can be a valuable source of extra income for retirees to cover living expenses, and healthcare costs, or enhance lifestyle choices while keeping ownership of the home.
- Flexible Funding – Equity release solutions can be set up to deliver funds as a lump sum, line of credit, or regular payments so you can choose the format that suits your financial needs and cash flow.
- No Monthly Repayments (for Reverse Mortgages) – In some cases, like Reverse Mortgages, there are no monthly repayments which can take the financial pressure off older borrowers.
- Property Appreciation – Even with an equity release loan the property can still appreciate in value and that can offset some of the loan costs.
- Negative Equity Protection – Some equity release loans have negative equity protection so you won’t owe more than the property is worth. This way, you’re protected against market fluctuations.
Why Choose an Equity Release Loan with Maxiron Capital?
Maxiron Capital offers a tailored, client-centred approach to equity release, providing flexibility and reliability when you need it most. Our key benefits include:
- Flexible Terms & Customised Solutions
Multiple Loan-to-Value Ratio (LVR) options
Multipurpose funding tailored to individual financial goals
- Experienced Financial Team
Knowledgeable advisors guiding you through every step for an informed, transparent decision-making process
Our fast equity release approach emphasises a personalised experience, helping you make choices that align with your financial objectives. Key aspects include:
- Flexible Repayment Options
- Lump Sum or Regular Payments
- Secure and Regulated – Adherence to industry standards and regulatory measures for a safe, secure lending experience
With Maxiron Capital, you gain a trusted partner committed to understanding and supporting your financial goals.
Get Started with Maxiron Capital
Interested in equity release loans?
Contact Maxiron Capital for a personalised consultation and see how our private lending can help your business or development needs.
Here’s how our 3 step approval and funding process works:
- Get Your Quote – Call or message us to discuss your funding needs. We’ll give you a quote and start your application.
- Approval Confirmation – Once approved we’ll send you an offer to sign and return at your convenience.
- Funds Released – Once all formalities are complete we’ll finalise the details and release your funds.
Our team will walk you through every step of the private lending process.
FAQs
A mortgage is used to buy a home, a home equity loan is used by homeowners to borrow against the value of their home.
Yes. Equity release allows you to access the funds tied up in your home’s value and live in it. Repayments are optional and the loan is repaid through the sale of the property when you pass away or go into long term care.
The Home Equity Access Scheme is provided by Services Australia and the Department of Veterans Affairs. It enables eligible seniors to receive a non-taxable loan secured against their property. This loan supplements retirement income through flexible fortnightly payments or as a lump sum. Loan limits are based on factors like age and the amount of equity offered as security, with a negative equity guarantee to ensure repayments don’t exceed the home’s value.
