Futureproof Financial offers the Equity Preservation Mortgage®, a mortgage-based financial instrument that allows retirees to access their home equity without depleting it, providing a steady stream of tax-free income for retirement and aged care needs. This solution addresses the retirement funding gap by monetizing residential home capital, ensuring that original equity and capital appreciation are preserved for future generations.
Funding
$9.5M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many retirees are asset-rich, with a significant portion of their wealth tied up in their homes, but they lack sufficient cash flow to cover retirement and aged care expenses. Traditional equity release products, like reverse mortgages, can be complex, risky, and may deplete home equity, impacting inter-generational wealth transfer.
Solution
Futureproof Financial offers the Equity Preservation Mortgage (EPM), a mortgage-based financial instrument designed to allow retirees to access their home equity without diminishing it. The EPM monetizes home equity to provide a long-term, tax-free annuity income stream or bundled financial and insurance products, addressing retirement funding gaps. Unlike reverse mortgages, the EPM ensures that the original equity and any capital appreciation remain preserved for future generations. Futureproof offers a SaaS platform that enables financial institutions to offer the EPM, integrated via APIs into existing mortgage platforms.
Target Audience
The primary customers are financial institutions, including banks, insurance carriers, and non-bank lenders, seeking to offer innovative mortgage products to retirees and pre-retirees.
Features
- Monetizes up to 80% of home equity into long-term tax-free annuity income.
- Ensures preservation of original home equity and capital appreciation for inter-generational transfer.
- Mortgage interest is paid on behalf of the retiree, preventing compounding interest.
- White-labeled equity release mortgage solution for financial institutions and regulated lenders.
- SaaS platform integrates with cloud-based mortgage platforms or legacy systems via secure APIs.
- Product catalog for different EPM applications to meet varied customer needs.
- Addresses retirement and aged care funding needs without negative equity or borrower serviceability risk.