Bendigo Bank is rationing access to its shared equity product, Homesafe, with only one third of the demand for this form of finance being fulfilled.Mike Hirst, chief executive of Bendigo, said the bank was funding only $5 million a month at the moment."We could write three times that, there's so much demand for it."The finance is a form of shared equity. The home-owner must be aged 55 or older (if the person's home is in Sydney) or 60 or older (if the home is in Melbourne). These are the only two locations in which Bendigo is willing to provide finance under the scheme at present, and the finance is available mainly on free-standing homes.The home-owner maintains title to his or her property and the bank is re-paid through the sale of the proceeds of an agreed share of the home.Bendigo has invested $250 million of its own equity in Homesafe loans since 2005 and has imposed a cap of $350 million on its exposure.While there will be some turnover in the existing funding (as elderly customers sell their homes or die) the bank's ability to fund the product will peter out early in 2014, if not earlier, assuming the bank does not further ration the funding.Bendigo is searching for alternative investors in the equity within Homesafe, with its pitch mostly being made to superannuation funds and life insurance companies that need long-term assets to match their liabilities.Hirst said of this so far unsuccessful quest that, from an investor's point of view, the problem is "the cash flow is unknown, though as we build a portfolio people are getting a handle on it."At present, the Bendigo Homesafe product is the only shared equity product in the market, and even then it is an alternative to reverse mortgages aimed at older home-owners.Macquarie Bank recently suspending funding under the equity finance mortgage originated through Rismark while it reshapes the terms of this finance and finalises negotiations over new funding.