ME Bank and specialist retirement funding provider Household Capital, which launched earlier this year, have announced a partnership to establish a $100 million wholesale debt facility.
The loans, which would be offered at an interest rate of 5.9 percent, were designed to provide funding for retirees who wanted to remain living at home, feeding into Household Capital’s model of using loans to transfer a portion of clients’ house values into their super funds or investment accounts.
“Household Capital has expanded access to home equity, improved the customer experience and established new sources of finance,” Jamie McPhee, ME Bank chief executive, said. “We are pleased to work with such an innovative group to transform the lives of Australian retirees.”
ME Bank holds a minority equity stake in Household Capital.