Generating income from your home

There are ways you can access money tied up in your home without giving up on home ownership. You can:

• Trade down
• Use a reverse equity mortgage
• Sell your home to family or whanau

Trading down

Moving to a lower value home can provide money that will improve your lifestyle in retirement.

Reverse equity mortgages

Equity release is a way to borrow money using your home as security that the loan will be repaid. When you die, or move, the house will be sold to repay the loan. For a clear outline of the types of equity release products and things to consider have a look at Sorted's equity release section.

Selling your home to family or whanau

Selling your home to family or whanau is an alternative approach. If you intend to leave your home to them anyway, they might be willing to provide you with financial assistance during retirement in the knowledge that when you die they will inherit the house. To protect yourself and your family you should get legal advice about making this a formal arrangement. Also make sure it's taken into account in your will.

Check these alternatives out very carefully.

Get some legal advice and financial advice.
Look at our checklist for financial advice.
See our Home Equity Conversion Loans research report. This report was created at the recommendation of the 1997 Periodic Report Group. It looks at New Zealand's experiences of these products, the barriers to using them and the potential for the expansion of their use.

• Full Report (PDF 348KB)
• Summary Report (PDF 97KB)

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