Who Equity Release May Be Suitable For
This may be right for you if you:
- Own a Perth property that has grown in value and have an LVR below 80%
- Want to fund a renovation, investment property deposit, or major expense
- Are aged 60+ and looking to supplement retirement income without selling
- Have significant equity but limited liquid savings
- Want to consolidate higher-interest debt into a lower home loan rate
How Equity Is Calculated
Most lenders allow access to equity up to 80% of your property’s value, minus your existing loan balance. For example: a $900,000 property with a $400,000 loan balance has up to $320,000 in accessible equity ($900,000 × 80% − $400,000).
For reverse mortgages, the limit is determined by age rather than income serviceability – typically 15–20% of property value at age 60, increasing by around 1% per year. All reverse mortgages in Australia taken out after September 2012 carry mandatory negative equity protection, meaning you can never owe more than your home is worth. ASIC’s MoneySmart provides detailed guidance on how these products work.
| Purpose | Common approach |
| Home renovation or extension | Cash-out refinance or construction loan |
| Investment property deposit | Equity loan or refinance |
| Debt consolidation | Refinance with debt consolidation |
| Supplement retirement income | Reverse mortgage or HEAS |
| Emergency buffer | Line of credit or redraw |
How the Process Works
- Initial review – We assess your loan, property value estimate, and goals
- Identify the right approach – We explain the trade-offs between refinance, reverse mortgage, line of credit, and other structures
- Lender matching – We compare options across lenders that specialise in equity release
- Application and valuation – We manage paperwork and coordinate the lender-required property valuation
- Settlement – Funds are released according to the agreed structure
Things to Consider Before Proceeding
Equity release can be a strong solution – but it does come with trade-offs:
- A higher loan balance or longer loan term if refinancing
- Compounding interest over time for reverse mortgages
- Potential impact on Age Pension entitlements or aged care means testing – Services Australia’s Financial Information Service can advise at no cost
- LMI may apply if the new LVR exceeds 80%
How We Help with Equity Release in Perth
Not all lenders offer equity release products, and reverse mortgage policies vary significantly between providers.
Our role is to:
- Compare lenders across refinance, equity loan, and reverse mortgage options
- Assess your eligibility and current LVR position
- Structure your application clearly, including any required “as if complete” valuations
- Manage the process from enquiry through to settlement
If you’re considering a home loan refinance as part of your equity strategy, we can review your current rate and loan features at the same time.
Speak With an Equity Release Specialist in Perth
If you own a Perth property and want to understand what equity you can access, our team can walk you through the options.Speak with Central Lending Solutions today to discuss your situation and get a clear picture of what’s available.