Retirees typically fund their retirement using a combination of savings in superannuation and other investments, as well as the the Age Pension. However, many Australians retire without enough superannuation to fund a comfortable retirement and maintain the lifestyle they worked hard to enjoy.
Household Capital can make another avenue of retirement funding available to you. We enable you to draw on your home equity, or the savings in your home, via a Household Transfer®. It allows you to access a portion of your home’s value to meet your long term retirement needs.
Top up your superannuation or investments, boost retirement income, meet unexpected expenses
"We worry about running out of money in retirement. But I’ve always realised there is wealth in the home. We’ve always worked for the long-term. This is a long-term approach."
Debbie & Bill Ivanhoe VIC
Refinance an existing mortgage to improve your retirement funding with no obligation to pay interest
"It was such a relief to cover what was left of our mortgage and not have to stress about meeting the repayments each month. Now our income covers those things I was looking forward to in retirement - day trips, time with the grandkids and indulging our passion for movies."
Florence Mornington VIC
Renovate your home, upgrade your car, improve your lifestyle
"I needed to modify my home so I can comfortably stay here for a few more years before moving into aged care. It’s kept me anchored to my community, which is really important to me."
Rose & Jack Northbridge NSW
Medical expenses, in-home care, residential aged care
"My husband needed to enter a residential aged care facility while I wanted to stay at home. A Household Loan enabled us to pay a Refundable Accommodation Deposit on his facility of choice and, at the same time, meant I could stay in our family home. This was really important to me, it’s where all my memories are. I didn’t want to have to move out."
Sophia & Joe Brisbane QLD
Help future generations when they need it most
"We want to fund our granddaughter to be able to take a year’s maternity leave to spend with our future great grandchild. It’s such a special time for mother and child but without pay, she needs to return to work to be able to contribute to their mortgage."
Sue & Peter Sydney NSW
Your home can be both the best place to live and right way to fund your own retirement
A Household Loan is our innovative approach to borrowing against home equity for responsible, long-term, retirement funding.
Our loan is structured as a reverse mortgage, which means you remain the owner of your home. Importantly, legislative protections mean that you can stay in your home as long as you want to, you only need to repay the loan when you leave your home and you cannot end up owing us more than the house is worth.
Why choose us?
We ensure you access your home equity responsibly and sustainably to meet your long term retirement needs
Each of our customer’s circumstances are unique. We want you to discuss your options openly with us, your family and your adviser to achieve the best outcome for you
We offer the lowest comparable interest rate, transparent fees and no exit or other penalties
We provide you with great flexibility in managing your Household Transfer. Make no interest payments, interest-only payments or repay your loan at any time
What is our process?
Determine how much you may be able to borrow and explore your funding needs using our calculator
Meet with one of our retirement specialists to assess whether a Household Transfer might be right for you using our innovative software
Complete an application, which includes all the relevant information and contracts in a single pack
Use the proceeds of your Household Transfer and Live Well At Home
How does this help me?
Explore your potential Household Transfer using our needs-based calculator.
Most frequently asked questions
How can I use my household loan?
A Household Loan is our innovative approach to borrowing against home equity for responsible, long-term, retirement funding. Our loan is structured as a reverse mortgage.
A reverse mortgage allows you to borrow money using the equity in your home as security. Interest is charged like any other loan, but you usually don’t need to make repayments while you live in your home. The loan must be repaid in full if you sell your home or die or, in most cases, if you move into aged care.
Please see the Reverse Mortgage Information Statement for more information. To find out more about reverse mortgages, including a reverse mortgage calculator to help you work out how much equity you may have in the future, visit the Australian Securities and Investments Commission’s free consumer website at www.moneysmart.gov.au.
The interest rate on a Household Loan is a variable rate of 5.65*% per annum (which is Australia’s lowest rate for a reverse mortgage or equity release product).
*The Comparison Rate based on a loan of $150,000 for 25 years is 5.71% per annum. Fees and charges may be payable. Note: this comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
What protections does a Household Loan provide?
As our loans are structured as a Reverse Mortgage you benefit from key structural and legislative protections.
You remain the owner of your home (and benefit from any increase in property value)
you can stay in your home for as long as you want to
No Loan Repayments
there is no requirement for to make periodic loan repayments (although you can do so at any time). The loan becomes repayable when you leave your home.
No Negative Equity Guarantee
you cannot end up owing us more than the house is worth.
These protections are subject to you not materially breaching our loan contract terms and conditions.