Document background
Home Equity Agreements (HEAs) have emerged as an alternative financing solution in the Australian market, allowing property owners to access their home equity without taking on additional debt. This document is essential when structuring arrangements where investors provide upfront capital in exchange for a share of future property appreciation. It is designed to comply with Australian financial services regulations, including the National Consumer Credit Protection Act and ASIC requirements. The agreement covers crucial elements such as property valuation methodology, equity sharing calculations, owner obligations, investor rights, and exit provisions. It is particularly relevant in scenarios where traditional lending products may not be suitable or available to property owners, while providing investors with exposure to residential property appreciation.
