Resources and FAQs

Homeowners aged 60+ can access our flexible lending solutions. Please note, if there is more than one person on the title, both parties need to be aged 60+.

As long as your client meets the age requirement, retirement is not a prerequisite.

If the security property is held in joint names, both owners must qualify for the product to apply.

Not-on-title borrowers must be over the age of 60 and in a spousal or de facto relationship. They will enjoy occupancy protections under the contract as any borrower would.

If the registered owner of the property passes away and the title transfers to a third party, the not-on-title borrower will lose all occupancy protections, and a repayment trigger event will occur.

Any one who lives in the security property who is not a party to the loan is considered to be a 'permitted co-habitant'. Occupancy protections do not apply and permitted co-habitants over the age of 18 will be required to sign an acknowledgment that the loan has been provided.

Owner occupied residential property, including houses, apartments and units located on less than five hectares. Secondary properties can also be considered.

Reverse mortgage regulations require we must deal with “a natural person”; this means we cannot assist clients who own property through another structure such as a company, trust or SMSF.

We can assist clients who own an over 55 strata title apartment. In the case of retirement villages and leasehold retirement communities, we are unable to take security over any land and therefore cannot assist.

A reverse mortgage cannot be taken out on a property that is zoned commercial.

There are two ways to work with us:

• A referral partner - simply refer your clients for our team to manage the loan process
• An originator - complete our accreditation process to originate and manage loans end-to-end

If you're unlikely to write regular reverse mortgage business, the referral partner option is probably best for you.

Conversely, if you believe you're likely to build a strong pipeline of over 60s lending, you may prefer to originate the loans yourself.

Becoming a referral partner is easy. Simply complete the this form and we'll send you a referral agreement. Once that's in place, you'll be able to login to our Broker Portal to quickly and easily refer your clients.

To complete our accreditation process simply complete this form and, under referrer type, select 'originator'. You will then be sent a link to complete the accreditation module. Once your accreditation is complete, you'll receive access to our Broker Portal to manage your clients' applications.

LVRs for Reverse Mortgages are mandated by ASIC and are based on the age of the borrower. The maximum LVR is 20% at 60 years old and 50% at 90+ years old. The LVR increases by 1% for each year – e.g. at 65 the LVR is 25%.

The maximum LVR is set at the youngest applicant or approved occupant.

The amount that can be borrowed is a factor of your client's age/LVR and the value of their home.

Yes – your client can receive a regular fortnightly or monthly income stream and draw capital to meet a range of needs.

Yes – as long as the LVR accommodates the outstanding balance, a mortgage (or other debts) can be discharged. Household Capital has two lending options designed for refinancing an existing mortgage: the Optional Retirement Interest Only (ORIO) options and Retirement Refi.

Yes, as long as there are sufficient funds to cover any shortfall in the purchase amount. In this situation, we would need a signed copy of the sale contract and a contact (usually the real estate agent) to organise a valuation.

Where your client is seeking to borrow less than 50% of the maximum loan amount, we require a scope of works. Depending on the type of work, permits and/or quotes may be required.

Where your client is seeking to borrow between 50% and 75% of the maximum loan amount, we require a detailed scope of works, as well as quotes, permits, and potentially, fixed price contracts. Headroom will be required in case of project cost overrun.

Household Capital has limited appetite for renovation works that require greater than 75% of the maximum available loan.

Household Capital can offer a lending solution for clients who are entering residential aged care. Borrowers can elect to borrow either a lump sum to pay the Refundable Accommodation Deposit (RAD), or alternatively, set up a regular income stream to pay the Daily Accommodation Payment (DAP).

In addition to this, borrowers can request funds for ongoing core property expenses or any maintenance required.

Please send the details to scenarios@householdcapital.com and one of our specialists will be in touch to discuss it with you.

In most cases there will not be an impact to the Age Pension, except where a large amount is withdrawn and invested or placed in the bank such that it impacts the client’s assets test or income test.

We always recommend the client speaks directly with Services Australia to ensure their pension entitlements are not impacted. Note: if a client receiving a pension is proposing to gift funds drawn from home equity, this should be checked with Services Australia, which has clear gifting rules.

The minimum loan size is $50,000 and the maximum is $5,000,000.

Yes – voluntary repayments can be made at any time at no cost. Each borrower is provided a unique BPay number so your clients can easily make payments into the loan as required.

The loan is fully repayable when a repayment trigger event occurs:

• The property is sold – repayment at settlement
• Up to 5 years from when the last borrower or approved occupant moves into aged care
• Within 365 days of when the last borrower or approved occupant passes away or ceases to reside in the property

Loans may be repaid (in part/full) at any time without penalty.

The average period is three-to-four weeks. However, there may be complex situations where the process takes longer. Refinancing a home loan may take longer because it’s subject to the outgoing lender confirming a settlement date.

Applications signed under EPOA or an administration/guardianship order will be considered under the following circumstances:

• The primary purpose of the loan is to fund aged care, either a Daily Accommodation Payment or Refundable Accommodation Deposit, as well as other care related aged care needs.
• Where the EPOA is held by a spouse, funding can be requested for any approved purpose (except for gifting). Household Capital will typically only allow this in instances where the loan is to benefit the donor (the client who has
  given their attorney powers).
• If EPOA is held by other family members or a third party, the loan purposes must benefit the donor in their entirety.
• Household Capital will require that the EPOA is registered with the Land Titles Office in each state (all states except Victoria, where Household Capital will require a certified copy of the EPOA document).

We would prefer that the EPOA is provided early for a legal review. We also require evidence of incapacity and importantly, funds must be used for the benefit of the applicant.

Clients must receive independent legal advice prior to signing the contracts. If Household Capital has been provided with the Solicitor’s details, we will automatically issue them copies of the contracts for review.