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Our Household Loan

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No Regular
Repayments
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Retirement Income Solution

Retirees typically fund their retirement using a combination of savings in superannuation and other investments, as well as the Age Pension. However, many Australians retire without enough superannuation to fund a comfortable retirement and maintain the lifestyle they worked hard to enjoy.

Our Household Loan enables you to unlock the wealth in your home and responsibly access a portion of your home’s value to meet your long term retirement needs. It also provides you with flexibility and choice to improve your lifestyle and wellbeing while you continue to live in the  home you love. 

It's As Easy As 1, 2, 3!

HHC Icon - _PERSONALISED CONSULTATION
CONFIRM ELIGIBILITY

Use our online calculator to see your accessible Household Capital.

HHC Icon - _APPLY
PERSONAL CONSULTATION

Experience one-on-one personalised service with a retirement specialist.

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APPLICATION

We guide you through every step of the application process.

How You Can Use A Household Loan

You can use your home wealth in one or more  ways, from drawing a regular income stream through to becoming the bank of mum and dad. 

Top up

Increase retirement income or set aside a contingency fund

Refinance

Refinance a mortgage or consolidate debts

Live

Fund home repairs, renovations, or expenses

Care

Cover medical, dental, in home or aged care 

Give

Gift family with a home deposit or education 

Calculate Your Home Wealth

Learn how accessing your home wealth could help you consolidate debts or increase your income.

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Interest Calculation

9.20%

variable rate

9.23%

Comparison Rate*

Because regular repayments are totally optional, any unpaid interest is added to the loan balance and compounds over time. This means you may pay interest on your interest. Over time, the amount you owe may increase. 

If you choose to make 'interest only' payments as part of our Optional Retirement Interest Only plan, the amount you borrow stays the same over time and only the amount you borrow is repayable.
.

See more on interest rates and fees.

How Our Customers Rate Us

 

Bill
“I feel I'm living again and the amount of money that one is using on the house is just a capital gain.”
Bill
Retiree, Cooroibah QLD
Mette
“Household Capital has made me feel free and I can do what I want because of Household Capital, so it was the best thing I ever did.”
Mette
Retiree, Gold Coast QLD
Nan and John
“We've always thought that retiring would be nice, but we never thought it would actually happen. But we've finally done it.”
Nan and John
Retirees, Gold Coast QLD
Chris
“Household Capital has given me the chance to realise a small portion of the equity in my home and it’s been a win-win situation for me”
Chris
Retiree, QLD
John
“Getting money from Household Capital, I don’t have to sell the property and go into a smaller property.”
John
Retiree, Woody Point QLD
Raelene
“I feel a lot more comfortable now and I know that I’m able to pay my bills.”
Raelene
Retiree, NSW
Lynne
“I saw an ad on TV for Household Capital, so I decided I would apply and I now have my new car.”
Lynne
Retiree, Blacktown NSW
Dennis
“To have that equity and keep the same house is just a wonderful way to be able to progress into our retirement.”
Dennis
Retiree, Sydney's inner west NSW
Colin and Sandy
“I’ve still got my beautiful car, and we’ve also got an income coming in thanks to Household Capital, and our retirement looks much brighter in the future.”
Colin and Sandy
Retirees, Macedon Ranges VIC

Frequently Asked Questions

What protections does a Household Loan provide?

A Household Loan is a type of reverse mortgage, so you benefit from key structural and legislative protections. Ownership

  • You remain the owner of your home (and benefit from any increase in property value)
Lifetime Occupancy
  • You can stay in your home for as long as you want to.
No Loan Repayments
  • There is no requirement for you to make periodic loan repayments (although you can do so at any time without penalty). The loan becomes repayable when you leave your home.
No Negative Equity Guarantee
  • You cannot end up owing us more than your home is worth.
Try our home wealth calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

What are the costs?

Interest Rate
The interest rate on a Household Loan is 9.20%p.a. (9.23%p.a. comparison rate*).

Establishment Fee
Household Capital charges an Establishment Fee (including conveyancing) of $950. Valuation fees may also apply to your property. Government fees and charges to establish your loan will be charged at cost if applicable.

Will my Age Pension be affected?

The Age Pension is an important source of income for many retired Australians. We can work with you to understand how a reverse mortgage can be used to preserve your pension entitlements and always recommend you speak to Centrelink to ensure your entitlements aren’t affected.

Should I get financial advice?

If you are using your home equity to top up your super or other investments, you are required to obtain financial advice. This will help you determine how best to deploy your home equity to ensure improved long-term retirement funding. A financial adviser can also help structure your financial affairs to maximise your entitlements to the Age Pension.

Can I use a Household Loan to fund in-home care?

Yes. A Household Loan can be used to pay for your in-home care requirements, giving you greater choice and flexibility in terms of the services you can access. Try our home wealth calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

How can a Household Loan make my life easier?

There are so many ways a Household Loan can transform your retirement. Here are a just few:

  • It can act boost your regular income so you can do more with retirement
  • You can use it to top up super or other investments
  • You can help your kids get onto the property ladder
  • You can help pay your grandkids education expenses
  • If you have a bank mortgage, you can repay it and improve your cash flow
  • You can renovate or modify your home to get it retirement ready
  • Comfortably cover medical costs, health insurance and other bills
  • Pay for your choice of in-home or residential aged care
Try our home wealth calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Can I take out a Household Loan to take my family on a holiday?

Our focus is on providing responsible, long term retirement funding. While a Household Loan can be used to fund travel as part of a broader retirement funding plan, we don't lend solely to fund holidays. Try our home wealth calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

What is a Household Loan?

What is a Household Loan?A Household Loan is our innovative approach to borrowing against home equity for responsible, long-term, retirement funding. It is a type of reverse mortgage, which allows you to borrow money using the equity in your home as security. Interest is charged like any other loan, but you don’t need to make regular repayments while you live in your home.

The loan must be repaid in full when you sell or leave your home or, in most cases, if you move into residential 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. Try our home equity calculator or call us on 1300 760 139 to see how using your Household Capital could improve your retirement funding and help you to Live Well At Home™.

Can the loan be repaid before the house property is sold?

Yes. You may repay part or all of your Household Loan at any time, without penalty.

If I live too long, will accessing my home equity leave me or my family with no equity left?

Your remaining home equity at the end of your loan is a factor of the initial LVR, interest rates, growth in home values and the term of your loan. In most situations, you will likely retain a reasonable proportion of equity to bequeath to your children.

How much interest do I have to pay on the loan?

Our Household Loan has a variable interest rate and changes in line with the RBA's cash rate. Up-to-date information about our current rate is available at https://householdcapital.com.au/reverse-mortgage-interest-rates/.

Will taking out a Household Loan/Reverse Mortgage mean I cannot leave much to my family and children?

The amount you can borrow is dependent on on the Loan to Value ratio (LVR). For a Household Loan, the calculation takes two factors into account – the age of the youngest borrower and the value of your property. The percentage of equity you can access is regulated by the National Consumer Credit Protection Act (NCCP). Household Capital’s LVR starts at 20% of the agreed property value for those aged 60 and increases 1% per year thereafter. Total remaining equity is a factor of the initial LVR, interest rates, growth in home values and term of your loan. In most situations, you will likely retain a reasonable proportion of equity to bequeath to your children.

If I leave my home to my children, when do they have to pay out the loan?

Your children and/or estate has 12 months to pay out the loan.

Who has to pay off the loan once I pass away?

Once the last homeowner has passed away, the loan is settled by the estate within 12 months.

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Disclaimer: Comparison rate based on a secured loan of $150,000 over a 25 year term. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates.

Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. ^Amounts spent will be added to your Household Loan and accrue interest like any other funds drawn via your Household Loan.