Home Equity Access Options in Australia: Complete Comparison (2026)
Six ways to access home equity compared — reverse mortgage, HEAS, home reversion, fractional funding, refinancing and downsizing — on cost and protection.
Australian homeowners have six main ways to turn the value locked in their home into money they can use now: a reverse mortgage, the government’s Home Equity Access Scheme (HEAS), home reversion, a fractional sale of the home’s economic value, a cash-out refinance or home equity loan, and downsizing. Five of the six let you keep living in your home. They split into two families — borrowing against the home, which creates a debt, and selling part or all of it, which does not — with downsizing the full-sale baseline everything else is measured against.
This guide compares all six on the factors that actually decide which one fits a situation: how each works, whether you keep legal title, whether it creates debt, what it costs, what protections apply, who is eligible, whether it can be reversed, and how it ends. It does not name a best option. The right choice depends on your age, your time horizon, your income and your plans — and those are questions for licensed advice, not a comparison table.
What are the home equity access options in Australia?
The six options fall into two groups. Reverse mortgages, HEAS and a refinance or home equity loan are debt — you borrow, and the debt is repaid later, usually from a sale. Home reversion and a fractional sale are sales — you receive money now for part of your home’s value, with no interest and nothing to repay. Downsizing sells the whole home.
What is a reverse mortgage?
A reverse mortgage is a loan secured against your home, structured so no regular repayments are required. Interest is added to the balance and compounds — interest is charged on the interest already added — until the loan is repaid, usually when the home is sold or the borrower dies. You stay the owner, and any growth in the home’s value is yours; the cost is the debt growing against it. Moneysmart, ASIC’s free consumer website, explains the structure in detail.
What is the Home Equity Access Scheme (HEAS)?
The Home Equity Access Scheme is a voluntary loan run by the Commonwealth through Services Australia. It sits in the reverse-mortgage family — a loan secured against Australian real estate, with interest compounding on the balance — but it is a government scheme rather than a private product. As at July 2026 the interest rate is 3.95% per year, compounding fortnightly, and each fortnight your combined pension and loan payments are capped at 150% of the maximum pension rate.
What is home reversion?
Home reversion is the sale of a share of your home’s future sale proceeds to a provider in exchange for a lump sum now. The provider pays a discounted amount because it may wait years — until the home is sold — to receive anything back. It is a sale, not a loan: no interest, nothing to repay. The cost is the discount and the share of future value you no longer hold.
What is fractional funding, or selling a share via Brix?
A fractional sale divides a property’s economic value into small units and sells some of them to investors. This is the model MyBrix — the platform behind this blog — operates. Each property is divided into 10,000 Brix: a Brix is a fractional economic interest in the property, a proportional share of its future value and a financial product under the Corporations Act 2001 (Cth), not a loan and not a slice of your legal title. You remain the registered legal owner and keep living in the home; the investors who buy Brix hold an economic interest, not ownership of your house.
What is a refinance or home equity loan?
Refinancing replaces your existing mortgage with a larger one and pays you the difference; a home equity loan or line of credit borrows separately against the equity you hold. Both are ordinary credit products: you borrow, pay interest, and make repayments. Because they are loans assessed on your capacity to repay, they depend on passing a lender’s serviceability check — the point where many older or lower-income owners are turned away.
Does downsizing count?
Yes — it is the simplest option and the baseline the others are measured against. You sell the whole home, buy something less expensive, and keep the difference. There is no provider and no ongoing arrangement; the trade-offs are practical — selling costs, stamp duty on the next purchase, the effort of moving, and leaving a home you may have wanted to keep.
How do the six options compare at a glance?
The table below is the short version. Each row is unpacked in the sections that follow.
Assumptions behind this table and the tables below: an owner-occupied residential property; product structures as described by Moneysmart (reverse mortgage, home reversion) and Services Australia (HEAS), and by the MyBrix Product Disclosure Statement for the fractional case, with MyBrix terms stated as at July 2026; a reverse mortgage taken out after 18 September 2012, so negative equity protection applies; individual lender rates, provider discounts and fees vary. The tables compare structure, not price — no option is presented as cheaper than another.
| Option | Debt or sale? | Keep legal title? | Main cost | Reversible? |
|---|---|---|---|---|
| Reverse mortgage | Debt (loan) | Yes | Compounding interest on the balance | Repay or refinance the loan |
| HEAS | Debt (government loan) | Yes | Compounding interest at the scheme rate | Repay any time; transfer on sale |
| Home reversion | Sale of a share | Yes, until the home sells | Discount on the share sold | Generally not until sale |
| Fractional funding (Brix) | Sale of economic interests | Yes — registered owner | Fees plus future value of sold Brix | Buy back Brix any time |
| Refinance / home equity loan | Debt (loan) | Yes | Interest and loan fees | Repay or refinance |
| Downsizing | Full sale | No — you sell and move | Selling and moving costs | No — the sale is final |
What does each option cost, and how is it structured?
The costs are not comparable as a single number, because they are different kinds of cost. A loan’s cost is interest that compounds over time; a share sale’s cost is a slice of your home’s value, fixed as an upfront discount or tracking future value; a full sale’s cost is transaction and moving expenses. Which works out smaller depends on how long the arrangement runs and what the property market does — neither of which is knowable in advance.
The debt options carry compounding interest. Each private reverse-mortgage lender sets its own interest rate, fees and minimum ages — none of those figures is fixed by law. The HEAS rate, by contrast, is published: 3.95% per year compounding fortnightly, as at July 2026. A refinance or home equity loan is charged at ordinary mortgage rates plus the lender’s fees.
Home reversion’s cost is the upfront discount. In Moneysmart’s worked example, current as at July 2026, a provider buying a 20% share of the future value of a $500,000 home might offer between $37,000 and $78,000 today, depending on the owner’s age. ASIC research from 2005 found providers paying 35–60% of the market value of the share sold — dated research, but it shows the scale of the discount. The provider market is small; as at July 2026, at least one provider (Homesafe) operates, in metropolitan Melbourne and Sydney.
Fractional funding charges defined fees rather than interest. On the MyBrix model, the owner-side fees as at July 2026 include a $99 property assessment, a $999 manual assessment by a licensed valuer, a funding application fee of $1,499 to $1,999 per listing, and a funding fee that is either 5.0% of the funded amount upfront or 0.1% per month deferred — one or the other, agreed per listing. An occupation fee of 0.2% to 0.5% per month may also apply, a selling management fee of 5.0% of the gross sale price is charged if the property is sold, and the fees include GST and are generally non-refundable, with some payable even if funding does not proceed. The real cost, though, is the same as any share sale: once Brix are sold, the future value attached to them belongs to the investors who hold them unless you buy them back.
Downsizing’s cost is the transaction. A selling agent’s commission is a negotiable professional fee that varies by agent, location and service level — no government body publishes a standard rate — and stamp duty is payable on the home you buy next. General information can list these cost forms; working out which is cheapest for your situation is a calculation for a licensed adviser, not a rule of thumb.
What protections apply, and how is each regulated?
The loan-or-sale divide is a regulatory divide as well as a structural one. Debt products sit under Australia’s consumer credit law; sales do not.
| Option | Regulated as | Main protection |
|---|---|---|
| Reverse mortgage | Credit product (NCCP Act 2009) | Negative equity protection, post-18 Sep 2012 loans |
| HEAS | Commonwealth social security scheme | No negative equity guarantee, from 1 July 2022 |
| Home reversion | Property transaction, not credit | Outside consumer credit protections |
| Fractional funding (Brix) | Financial product (Corporations Act) | PDS and TMD disclosure; AFCA access |
| Refinance / home equity loan | Credit product (NCCP Act 2009) | Responsible-lending obligations |
| Downsizing | Ordinary property sale | State conveyancing and consumer law |
Reverse mortgages, refinances and home equity loans are credit products under the National Consumer Credit Protection Act 2009, which brings responsible-lending obligations. The strongest reverse-mortgage safeguard is negative equity protection: for loans taken out from 18 September 2012, the law ensures “you can’t end up owing the lender more than your home is worth”, as Moneysmart puts it. Contracts signed before that date may not include it.
HEAS carries its own no negative equity guarantee, in force since 1 July 2022 under social security law: you or your estate won’t have to repay more than the market value of the secured property, minus any other mortgages or legitimate claims. It is not unconditional — Services Australia notes the guarantee may not apply if you increase a mortgage or encumbrance, misrepresent your circumstances or commit fraud. Both guarantees are genuine, but they come from different laws, carry different dates, and each has its own limits.
Home reversion is not a loan and charges no interest, so it sits outside the consumer credit framework, and the negative equity protection that covers post-2012 reverse mortgages does not apply to it. A fractional sale is a financial product: its protection comes from the Corporations Act disclosure regime — a Product Disclosure Statement and Target Market Determination setting out features, fees and risks before you commit — and from access to external dispute resolution.
AFCA describes itself as “a free, fair and independent dispute resolution scheme” for complaints about financial products and services; its decisions can bind the firm, and many firms must be members under their licence conditions. MyBrix states that it is authorised representative 1304961 of Australian Financial Licensing Group, AFS Licence No. 269868. You can confirm any licensee or representative on ASIC’s public registers — membership or a licence is not an endorsement of a product.
Who can access each option, and how does each one end?
Eligibility is where the debt options and the sale options diverge most sharply. A loan tests your income; a sale tests the property.
| Option | Who can access it | How it ends |
|---|---|---|
| Reverse mortgage | Lender age minimums apply | Repaid at sale or on death |
| HEAS | Age Pension age; eligible pension | Repay, transfer, or estate settles |
| Home reversion | Provider age minimums, often 60+ | Provider paid when the home sells |
| Fractional funding (Brix) | Property owners meeting MyBrix criteria | Buy back Brix, or sell; 10-year maximum |
| Refinance / home equity loan | Serviceability assessment required | Repaid or refinanced |
| Downsizing | No income test; ordinary sale | Complete once settlement occurs |
A refinance or home equity loan depends on serviceability — the lender’s assessment of whether you can meet the repayments without substantial hardship. Under ASIC’s responsible-lending guidance, licensees make reasonable inquiries and verification rather than applying a single formula; approaching retirement is treated as a foreseeable change in income to be assessed, not an automatic bar. As at July 2026, prudential guidance from APRA layers on an interest-rate buffer of at least 3.0 percentage points over the loan rate. Policies vary between institutions, and no lender’s specific criteria are stated here — but the structural point holds: the debt options test your income, while HEAS, home reversion and a fractional sale are built around the property or your age, which is why owners who can’t refinance often look at the sale-based routes.
HEAS eligibility requires you or your partner to be of Age Pension age, to qualify for an eligible pension (including at a zero rate), to offer Australian real estate as security with adequate insurance, and not to be bankrupt. It is unusually flexible to exit: you can repay it in part or full at any time, and if you sell the secured property you can either repay the loan at settlement or transfer it to a replacement home rather than being forced to repay (Services Australia sets out the process). If a loan remains after death, Services Australia generally seeks repayment from the estate after 14 weeks, with deferral possible where a surviving partner of Age Pension age still lives in the home.
Fractional funding on the MyBrix model is property-based. Owner-occupied residential is the primary case, some investment properties may be eligible, and a financial assessment may be required; valuation is by an independent licensed valuer, typically two to four weeks. Once funding completes you must keep a minimum holding — generally 20% (2,000 of the 10,000 Brix), though lower holdings such as 10% may be approved case by case — and the maximum term is 10 years.
Two exit features shape the fractional model. You can sell the property at any time during the term, and you can buy back Brix at any time. The buyback price is set before your property is listed and agreed with you: it is anchored to the price investors originally paid for each Brix — the Initial Brix Value — and rises by a fixed annual increase that you set within a band of 10% to 30% per year.
That annual increase is not interest and does not compound; it applies only to the Brix you repurchase in a given period, and the specific rate for your listing sits in your Participation Agreement. If you sell the property instead, the net proceeds — the sale price less the 5.0% selling management fee — are distributed after completion to all Brix holders, including you, in proportion to holdings at settlement.
How do these options affect your Age Pension, tax and estate?
Turning home value into money can ripple into your pension, your tax position and what you leave behind. The frameworks below are general; none of them can be applied to your own situation without advice.
Age Pension
Your principal home, plus up to two hectares of surrounding land, is exempt from the Age Pension assets test for as long as it stays your home — while most other assets, including cash and financial investments, are counted, and financial investments are also assessed under the income test using a deemed rate rather than actual earnings. As at July 2026, the assets-test full-pension limit for a single homeowner is $333,000, against $600,000 for a single non-homeowner, and deeming runs at 1.25% then 3.25% above the thresholds. Converting part of your home’s value into cash or another asset can therefore change how your entitlements are assessed.
Services Australia and the Department of Social Services publish no specific guidance on how the proceeds of selling a fractional interest in a home you keep living in are treated — the published rules address selling the whole home or holding other real estate, not a partial sale-and-stay — so the outcome for a fractional sale is genuinely unsettled and individual. Payments can be affected in ways specific to your situation — contact Services Australia’s free Financial Information Service before proceeding. You can read the current thresholds and deeming rates on Services Australia’s assets test and deeming pages.
Tax
Your main residence is generally exempt from capital gains tax where you are an Australian resident, the dwelling has been your home for the whole time you owned it, it has not been used to produce income, and it sits on two hectares or less; using the home to produce income can reduce that to a partial exemption. The ATO’s main residence pages set out the conditions. What the ATO does not publish is any guidance on selling a fractional economic interest — a financial product such as a Brix — in a home you keep living in and holding title to: it is unresolved whether that is a part-disposal of the main residence, a disposal of a separate asset, or something else, so the treatment of a fractional sale should be treated as an open question, not assumed either way. Tax outcomes depend on your circumstances — speak with a registered tax agent before acting.
Your estate
Every one of these options reduces what your home eventually contributes to your estate — that is the price of accessing the money earlier. With the debt options, the loan and its compounded interest are repaid, usually from the sale proceeds, before anything passes on; for post-2012 reverse mortgages and for HEAS, the respective negative equity guarantees cap what can be recovered. With a sale-based option, the portion you sold is already gone, and your estate keeps the value of what you still hold.
On the MyBrix model, if the arrangement reaches the end of its term the remaining Brix must be bought back at the pre-agreed price, or the property is sold at market value and the proceeds distributed proportionally to all Brix holders. Exactly how any equity release arrangement is handled on death depends on the contract and your circumstances. Speak with an estate planning lawyer about how this interacts with your will and estate.
What factors matter when weighing these options?
There is no single best option — only trade-offs that land differently depending on your situation. These are the factors that tend to decide it.
Time horizon. A debt product’s cost grows the longer it runs, whatever the market does. A sale-based option’s cost tracks the property’s value over the same years. Different horizons genuinely favour different structures — which is a calculation, not a slogan.
Your income. A refinance or home equity loan requires passing a serviceability assessment. HEAS, home reversion and a fractional sale are built around your age or the property rather than your income — a structural difference, not a reason to prefer one over another.
Occupancy and control. Ask each provider precisely which rights you keep — to live in the home, to renovate, to rent it out, to sell — and get the answers in writing before you commit. They differ by product, and some depend on contract terms that are not published.
Protections. A post-2012 reverse mortgage and HEAS each carry a statutory negative equity guarantee, within their own limits. A sale-based option relies instead on the contract and, for a financial product, the disclosure regime. Read the documents before signing anything.
Reversibility. Some options can be unwound — a loan repaid, Brix bought back — while home reversion and downsizing are effectively permanent once done. Whether you might want to reverse the decision later belongs in the comparison from the start.
Where can you get reliable information?
Moneysmart — ASIC’s free consumer website — covers reverse mortgages and home reversion; Services Australia publishes the HEAS terms; the ATO sets out the main-residence CGT rules; and provider disclosure documents carry the product specifics — for MyBrix, the Product Disclosure Statement and Target Market Determination at mybrix.com.au. For the routes covered here, this cluster goes deeper on each: the pillar guide to accessing home equity without a loan, reverse mortgage versus selling a share, how the HEAS works, home reversion versus a reverse mortgage, what equity release costs over the long term, the risks of equity release for homeowners, accessing equity when the bank won’t refinance, whether you lose control of your home, buying back the share you sold, and how a fractional sale interacts with your Age Pension and tax. General information can map the options; it cannot weigh them for your situation. A licensed financial adviser can.
