Advantages include:

• seniors can remain in their homes and not be forced to sell or go without
• the family home can be retained as an important asset
• it is easy to turn equity into cash
• it is not necessary to prove your income
• monthly loan repayments are not required
• no restrictions on how funds may be spent
• funds available in about three weeks from the time of application

Disadvantages include:

• loan balance will increase over time as monthly repayments are not made
• your home equity may be eroded over time. This will depend on the rate of future property value increases
• property values may not increase or may even fall
• beneficiaries' inheritance will be affected
• Centrelink entitlements may be affected
• there may not be sufficient equity for aged care costs in later life
• the property title must be given to the lender as security for the loan