Downsizing & Retirement Calculator
Moving to a smaller home? Calculate your costs with a large deposit and see if a small bond makes sense.
Retirement Property Types
- Life Rights
- You pay a capital sum for the right to occupy the unit for the rest of your life. You do not own the property, you pay no transfer duty, and you cannot bond it. Upon death, a portion of the capital is usually returned to the estate.
- Sectional Title
- You own the unit outright (Title Deed). You pay Transfer Duty and levies. You CAN get a bond on this property, provided you meet the bank's affordability criteria.
- Full Title (Freehold)
- You own the house and the land. Common in "Mature Lifestyle Estates". You are responsible for all maintenance, rates, and insurance. Can be bonded.
- Levy Stabilisation Fund
- A once-off fee paid by the buyer (or deducted from the seller's profit) in retirement villages to keep monthly levies artificially low.
Pensioner Property FAQs
Can I get a bond if I am a pensioner?
Yes, but it is harder. Banks look at your 'affordability' based on pension/annuity income, not your age. However, they may require a shorter loan term (e.g., 10 years instead of 20) to ensure the debt is settled within your life expectancy.
Can I get a bond for a 'Life Rights' unit?
No. Life Rights give you the right to live there, but you don't own the property title deed. Therefore, banks cannot register a bond over it. You must pay cash for Life Rights.
Should I pay cash or keep a small bond?
This depends on your investment returns. If your investment portfolio earns 10% and the bond costs 11.75%, it usually makes sense to pay cash and eliminate the debt.
Get a Formal Quote PDF
Need a formal document for your bank application or client? Enter your email to receive a branded PDF breakdown of this calculation including transfer costs and amortization.
- Official Amortization Schedule
- Tax Certificate Format