Welcome to Equity Release NZ
Your Independent Guide to Equity Release Products
What is Equity Release?
A Way to Unlock the Value in Your Home.
Equity Release NZ, co-founded with Cameron Bagrie of Bagrie Economics, offers clear, independent guidance and information on Equity Release options for New Zealand homeowners with economic context on some realities.
Equity Release options include Home Reversion, where you can sell a share of your home, or a Reverse Equity Mortgage, a method of borrowing against your home's value. These solutions address the common retiree dilemma of being 'asset rich but cash poor,' providing scope for a more comfortable retirement.
The products have pros and cons. We identify these and provide practical, impartial information to assist retirees, their families and advisers in considering potential asset utilisation options to fund a better retirement, whether for lifestyle, an immediate financial need (i.e. health) or for covering basic expenses such as rates, utilities and insurance.
Navigating Retirement Challenges in New Zealand
With life expectancy now exceeding 80 years (and rising), New Zealand's aging population faces unique financial challenges. More than 60% of retirees rely mainly on New Zealand Superannuation, while facing rising living costs and healthcare expenses.
The population aged 65+ holds around $725 billion in assets, yet many are cash-poor, and many struggle with home downsizing. Equity Release products emerge as solutions, offering financial flexibility to provide more comfort in retirement. Further potential complications, such as debate on inheritance taxes, underscore the need for effective retirement strategies.
Reverse Equity Mortgage
A Reverse Equity Mortgage is a type of Equity Release where homeowners borrow money against the value of their home, with the loan and interest repaid when the property is sold or upon the homeowner's passing.
Home Reversion
Home reversion is an Equity Release option in which a homeowner sells a portion or all of their property to a reversion company in exchange for a lump sum or regular income, while retaining the right to live in the home for the rest of their life.
