Here’s how it works according to Moneysmart; Loans generally start at $10,000, and if you’re 60 years old, you can borrow roughly 15% to 20% of your home’s value from a commercial lender.

For each year over age 60, you can borrow 1% more, so by age 65, this becomes around 20% to 25%.1 Depending on your age and the lender’s policies, you can take the money as a regular income stream, lump sum, line of credit or a combination of these.

The Australian Government enables retirees to access equity in their homes through the Home Equity Access Scheme – a non-taxable loan available to Australians of pension age or older – regardless of whether they receive a pension. You can get paid fortnightly, as a lump sum, or a combination of both.

The loan is secured against your home and interest 2 compounds fortnightly at concessional 3.95% per annum – notedly lower than the Reserve Bank of Australia’s cash rate of 4.35% and commercial reverse mortgage lenders that charge market rates of interest.3 The scheme includes a ‘no negative equity guarantee’, ensuring that the debt will not exceed the value of the property.4

It’s estimated that Australia has about 13 million spare bedrooms, with most of these in homes owned by older Australians. 5

Given Australia is experiencing a housing crisis, if you have a spare room, you may be able to earn a reliable income from renting it out. There are community schemes that match older Australians with suitable young people or older peers who need housing.6

You could also consider if a family member currently pays rent to a landlord - you may be able to offer a more attractive, less costly rental fee to your family, and have the confidence in knowing your house guest is not just a guest - it’s family!

If your home is in a desirable location, you may be able to make money by renting out your home on AirBnB or Stayz for part of the year. While your home is earning you income, you could house sit or take an extended stay in a low cost location, such as parts of Asia. Even short rentals over peak times like Christmas and Easter may be all you need to make life more financially comfortable.

If this is something you want to consider, research the amount you could earn, investigate limits on the number of days each year that your home could be rented out,7 your local council regulations, any strata rules and insurance.

• If you have some space in or around your home, here are ways it can earn an income for you: Platforms like Spacer allow you to rent out space, such as a garage, attic or shed for storage. Earn passive income by helping others store their belongings securely.
• If you have a driveway or garage, you can rent it out for parking. Websites like Parkhound connect you with people looking for parking options, especially in busy urban areas.
• Let your yard or driveaway be used for storing boats, caravans or trailers.
• If you have a swimming pool, you can rent it out for private use by the hour through Swimply.
• Rent out your garage to people who need space for hobbies like woodworking.