Fractional property products

A fractional property transaction can let you access some of the value of your home without creating a debt.

A fractional property transaction can let you access some of the value of your home without creating a debt. It is based on the current value of your home, unlike a home reversion product which is based on the future value of your home.

Fractional property products allow you to:

  • Sell a percentage of your property to a provider, in exchange for a lump sum now or
  • Arrange a staggered settlement paid regularly for an agreed period of time.

Benefits of fractional property products include:

  • Access to interest free equity from your home as a lump sum or regular income.
  • You can use the funds however you like.
  • You retain title to your property, and lifetime occupancy.
  • You benefit from capital growth (if applicable) on your portion of your home.
  • You can rent out your home if you choose and benefit from the rent.
  • Allows investors (including self managed super funds) to invest in your home, through a provider. This could allow you to keep the home within your family if your children or other family members purchase a share of the family home from their self managed super fund and/or other money.
  • They are not restricted to specific postcodes or cities/major regional centres.

Some things to consider

  • You should seek legal and/or financial advice before entering into an agreement.
  • You should contact Centrelink to discuss the possible impact selling a portion of your home could have on your pension/benefits.
  • You are selling a portion of your home, which reduces the amount of equity you retain in your home.
  • While you are living in your home, you will need to pay rent on the percentage of ownership to the investors.
  • You will need to understand the reduction in your equity now and in the future, when you may need to sell your home.
  • Set up fees, ongoing fees and other charges apply.

Helpful resources

Home reversion products

Access some of your home equity, without creating a debt.

Pension Loans Scheme

A way to supplement your age pension, funded by the Federal Government.

Reverse mortgages

Access the equity in your home through a loan, or refinance, without the requirement to make regular repayments.