TrueCost is a new feature on Downsizing.com.au that gives you a clear, personalised breakdown of the costs of moving into a retirement village—before you sign anything. Powered by VillageGuru, a TrueCost Report shows your entry fees, ongoing charges, exit fees, potential equity, pension impact, and buyback timeframes in plain English. Simply look for the TrueCost badge on listings and tick the box to request your free report. It’s the easiest way to make one of life’s biggest financial decisions with confidence.
Am I a Homeowner?
Working out whether or not you are a homeowner is the first step in calculating your Age Pension - By Rachel Lane
You’ve probably never had to think twice about whether you’re a homeowner—you either own your home (or are paying it off), or you don’t. But if you’re downsizing into a retirement village, you might still be considered a homeowner for Age Pension purposes, even when you don’t technically own the property.
Whether or not you’re classed as a homeowner matters for two big reasons:
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The Age Pension assets test uses different thresholds for homeowners and non-homeowners.
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It can affect your eligibility for Rent Assistance, which can add up to $212 per fortnight for singles or almost $200 for couples—on top of your pension.
How Retirement Village Contracts Affect Your Status
Most retirement village contracts are leasehold or licence arrangements. This means you have the right to live in your home and use shared facilities, but you don’t own the property outright.
The amount you pay to move in—called an entry payment, ingoing contribution, or sometimes a loan—is compared to what’s known as the “extra allowable amount”: the gap between the homeowner and non-homeowner asset thresholds.
As of 1 July 2025, this figure is $258,000.
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If you pay more than $258,000: You’re typically considered a homeowner. The amount you paid is exempt from the assets test, but you won’t qualify for Rent Assistance.
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If you pay $258,000 or less: You’re considered a non-homeowner. The amount you paid counts toward your assets, but you can qualify for Rent Assistance. The higher non-homeowner asset threshold usually covers this without reducing your pension.
Why This Matters When Downsizing
Even if you don’t “own” your home in the village, Centrelink applies specific rules that determine whether you’re classed as a homeowner. That classification affects:
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Your pension payment amount
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Your eligibility for Rent Assistance
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How your home’s value is treated in the assets test
Understanding your status before you move helps you plan effectively and avoid unpleasant surprises later.
How to Get Clarity — Instantly
The good news is you don’t need to calculate this yourself. A TrueCost Listing includes a personalised financial report powered by VillageGuru, which clearly explains:
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Whether you’ll be treated as a homeowner or non-homeowner
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How your entry payment affects the Age Pension assets test
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Your potential eligibility for Rent Assistance
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The broader cost implications of your retirement village choice
Just look for the TrueCost badge on listings and tick the box:
“Please send me a TrueCost Financial Report for this village”
Bottom line: Downsizing into a retirement village is a major financial and lifestyle decision. Knowing your homeowner status for pension purposes is key to planning with confidence—and a TrueCost Report powered by VillageGuru makes that simple.
Rachel Lane Presents Our TrueCost Editorials Series
- TrueCost Launch: A New Way to Downsize with Confidence
- Five Steps to Calculating a Retirement Village Exit Fee
- What Will Downsizing Really Cost?
- Supersize Your Downsize
- Top 5 Downsizing Tips
- Am I a Homeowner?
- How Much Can You Have and Still Get the Age Pension?
