At 2Be, we are focused on doing one thing well: Helping Australians between the ages of 55 and 75 to use the equity in their home to help their children—and grandchildren—now.
The creators of 2Be have run some of the biggest banks in Australia, New Zealand, and the UK.
We have worked with leading risk advisors to create a home equity loan for over 55s to help children buy a home.
Our product is not for everyone, and our lending policies and application process are designed to identify and protect those who are financially vulnerable.
Our free calculator will estimate the current value of your home. Simply type in your address and whisper us your age. We will show you how much money you could potentially release from your home.
It’s fast and secure.
We only ask you what we need to know to get you to the approval stage:
We are fast: We can generally give you a decision within 48 hours.
Then it’s up to you how you repay: Interest only? Interest and up to 5% of the original loan amount p.a.? You can even defer all payments until the end of the 5 year term.
Your money. Your decisions.
"All of our friends are trying to figure out how we can assist our kids NOW. Your application process was simple and quick and we had money within a couple of days of starting. Equity Advantage is a great option and has made us happy grandparents."
Find out how much of your home equity you can access to help your children with their home deposit.
Helping you navigate the difficult financial discussions often needed between parents and family members
Secure your future. We help you understand how much help you can afford to provide
A checklist to help your child know how much they can afford and be ready for home ownership
Lays out the pros and cons of each and guides you on the structure to best suit your needs
There are a number of sources you can draw on to help fund their deposit.
We help you understand the options.
Secure your agreements with solid documentation. We make it easy with our checklists and templates.
Equity Advantage is a five-year fixed rate loan with an annual interest rate of 6.95% (comparison rate 6.98%*). There is an upfront loan establishment fee of $1,250 to arrange settlement of the loan including valuation and documentation fees, but excluding government fees. These fees are deducted from the loan amount at settlement.
There is no ongoing monthly loan fee, however early repayment charges may apply in certain circumstances, including if you prepay or terminate the loan before the end of the five-year fixed term.
* Comparison rate is based on a secured loan of $150,000 over a 25-year term.
WARNING: this comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
At the end of five years, you will be required to repay your Equity Advantage loan.
As part of the application process, we will discuss your plans for paying off the loan at the end of the term. For example, this may include downsizing, selling certain assets, tapping your cash savings, or withdrawing money from your superannuation.
We will also check in with you annually to see if your circumstances have changed, as well as contacting you six months prior to the end of your loan term. In the event you need some extra time to put your repayment strategy in place, we may be able to extend your loan term (for example, if you plan to sell and downsize your current home).
The maximum loan amount that you can borrow is dependent on the Loan to Value ratio (LVR) which, for Equity Advantage, takes into account the age of the youngest borrower and the agreed value of the property that you are using as security. For approved Equity Advantage customers, this amount will typically be between 15% and 35% of the agreed value of the property up to a maximum of $500,000.
Traditional reverse mortgages do not have a fixed term and don’t require you to make any repayments until you sell your home. They typically only offer a variable interest rate, which could increase and result in a larger-than-expected loan balance at the end of the term.
A key difference with 2Be's Equity Advantage is that the loan term is fixed for five years, and you can choose to make interest repayments along the way. If you make monthly interest repayments by direct debit, your interest rate will be discounted by 0.25%. You can also make principal repayments of up to 5% of the original loan amount in each loan year without incurring an early repayment charge.
This provides you with the flexibility to reduce the amount you owe by making interest and other permitted payments along the way, or to preserve your cash and simply repay the loan and interest at the end of the five-year term.
In addition, traditional reverse mortgages are typically only offered to those aged 60+, whereas 2Be's Equity Advantage is available where the youngest borrower is aged 55.