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Is a Household Loan right for you?

17th Feb, 2023

About Household Capital

Pension Boost is owned by Household Capital, a specialist retirement funding provider who also offer the Household Loan – an alternative solution to the HEAS.

The Household Loan is a new model for home equity lending, a type of reverse mortgage designed to work within Australia’s retirement system.

Australia’s ageing population are living longer but in many cases this means they’re outliving their retirement savings. The Household Loan enables retirees aged 60+ access a portion of their home equity to improve their cash flow and ultimately live a better life in retirement.

 

Is a Household Loan right for you?

The Household Loan is available to eligible Australians over the age of 60. It may be right for you if you’re looking for more flexibility in accessing your home equity than the HEAS offers.

See the HEAS and Household Loan comparison table below to understand the key differences for you to consider when deciding which option is best for you.

 

 
Household Loan
Home Equity Access Scheme (Formerly Pension Loans Scheme)
Age:
60+
Pension age (66 and 6 months or 67 years)
Eligibility:
Australian homeowners
Homeowner (does not have to be a pension recipient)
Interest rate:
8.20% Variable
8.23%* Comparison
3.95%
Loan amount:
$50,000-$1,000,000 +
Up to 150% of Age Pension per fortnight (maximum additional income per year - $40,033.50 for singles or $60,356.40 for couples)
Payments:
- Capital
- Income stream
- Mortgage refinance
- Renovations
- Aged care RADs & DAPs
- Income stream or a capped lump sum advance payment
Locations:
All metropolitan postcodes and some regional areas
Most areas
Maximum loan:
20% of house value at age 65, then 1% each year
Income stream based on a fraction of 25% of house value each at age 65, then approximately 1.1% each year
Property valuation:
At establishment
Annual
Regulations & protections:
Responsible lending applies and subject to the National Credit Code (NCC) including its consumer protections.
Responsible lending does not apply and not subject to the National Consumer Credit Code or its consumer protections. Effective 01 Jan 22 Subject to the National Credit Code (NCC) but not including its broader consumer protections.
Service:
Personalised service by Household Capital team
Administered via Centrelink and subject to in-store or phone queues

 

Find out how much of your home equity you could access with the Household Capital Home Equity Calculator.

 

Alternatively, if you’d like to speak to someone about your options, request a call or contact Household Capital’s team on, 1300 760 139.