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Borrowing against the value of your home

If you own a home, you may be able to borrow money if you’ve paid off enough of your loan. The type of loan you get depends on your circumstances.

There are 2 main types of loans:

  • top-up loans
  • reverse mortgages.

You can only get 1 of these loans if you have equity in your home.

Equity is how much of your home you own — the difference between what your home is worth and how much you owe on it, if anything.

Top-up loans

Top-up loans are the most common way to use the equity in your house to borrow money.

The amount you could borrow will depend on how much equity you have in your home and whether you can make the regular repayments.

Contact your bank or mortgage lender to find out more.

Reverse mortgages

You can get a reverse mortgage if you’ve paid off your mortgage or only owe a small amount. You can only borrow a percentage of your home’s value. There’s also likely to be a minimum age, for example you have to be 60 or 65 before you apply.

Contact your bank or mortgage lender to find out more.

If you have a problem with your loan

In the first place contact your lender — they must provide a way to help you with a complaint. If they cannot resolve the issue and your home equity release arrangement is with a bank, contact the Banking Ombudsman Scheme.

Complain about your bank

If you have an issue with a financial adviser, there are several ways you can solve the problem.

Financial adviser problems and complaints

Other ways to get income from your home

There are other ways to generate income from your home.

Having flatmates in your own house

Income after you turn 65

Boarders, flatmates and tenants - tax responsibilities IR1037

Home reversion and home buy-back schemes

Home reversion or home buy-back schemes are common overseas, but there are currently no providers in New Zealand.

Under these schemes, you sell all or part of your home to someone else, but keep the right to stay in it as a tenant. Your home is usually bought by a bank or other financial service provider, and the money from the sale is yours to use as you like.

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