Frequently Asked Questions

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 equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

If you or a loved one need to move into residential aged care, a Household Loan can be used to pay either the Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP).

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The waiting list for government-funded in-home care packages is significant. There are currently more than 100,000 people on the waiting list, and many people have to accept a package providing a lower level of care than needed.

You don’t need to wait. You can use your Household Capital to choose your own in-home care supplier and services. Maybe you’d like someone to do the cooking, weed your garden or take you shopping.

Having the right in-home care services, delivered by someone you like and with the regularity you need, can enhance your wellbeing and help you to Live Well At Home^TM.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Through a Household Loan, which is a type of reverse mortgage, you can access your Household Capital to choose your own in-home care supplier and services. Maybe you need someone to help weed your garden, take you shopping or provide vital nursing care. Having the right in-home care services, delivered by someone you have a rapport with, can enhance your wellbeing and help you to make the most of remaining in your family home. Alternatively, if you or a loved one needs to transition to residential aged care, a Household Loan provides choice and flexibility; it can pay for the accommodation deposit or daily fees, and broaden your care choices. Whether it’s an upgraded room or a better quality facility, you can afford the care you deserve.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Some of our customers have needed to make the transition to an aged care facility. Refundable accommodation deposits (RADs) can be complex and expensive.

For many, it may seem the only option available to fund aged care is to sell the family home.

This may not be the best decision financially, emotionally or for your beneficiaries. Right now, your home is a non-assessible asset for your pension and a capped asset for assessing aged care fees. That could change if you sell your home.

A Household Loan provides choice and flexibility. It’s particularly useful where one person is moving into residential aged care and the other wishes to remain in the family home. You can use your Household Capital to:

• Pay the RAD and broaden your care choices.
• Draw an income stream to pay the daily accommodation payment (DAP).

Whether it’s an upgraded room or a better quality facility, you can afford the care you deserve.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Before you give your kids money to buy a house or pay education expenses, be clear whether it’s a gift or a loan. If it’s a gift and you receive the Age Pension (or other benefits), you must declare it to Centrelink. The annual limit for gifting is $10,000 (or $30,000 over five years depending on your situation) – anything above that may affect your entitlements for up to five years.

If it’s a loan, it can still impact your pension entitlements. If you lend your children money instead of gifting it, that loan will be treated by Centrelink in the same way as most other investments, with a deemed rate of return – even if your kids weren’t expected to pay you interest or stop paying the interest you agreed.

Importantly, the impact of the loan on your Age Pension isn’t limited to five years, but for as long as the loan is outstanding.

It can also be advisable to provide your kids or grandkids a statutory declaration stating whether it’s a gift or a loan and, if it’s the latter, the terms. We require legal advice for all Household Loans; any terms agreed by you and the recipients should be documented as part of this process. In matters of money, emotions can get the better of us. Your Household Loan must be right for you as well as the right thing to do by your kids. Being clear and upfront will keep everyone secure.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

It’s important to ensure that intergenerational wealth transfer is responsible; you must make sure your own needs are met before trying to assist your loved ones.

However, if your retirement funding needs are in hand, you can use a Household Transfer™ to contribute to a first home buyers deposit, help children with mortgage expenses or cover the costs of education.

This approach enables you to help children and grandchildren when they need it most and use your Household Capital™ to help the next generation build theirs.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

While you should get advice from your accountant specific to your circumstances, there could be implications if you lend money, depending on whether interest is payable. If that’s the case, that interest could be considered investment income and therefore taxable in the hands of the lending parent.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Traditionally, parents helping their children have generally used three strategies, each of which has its downsides.

The most common strategy is for parents to raid their retirement savings, which can wreak havoc on future retirement plans. It might leave you with reduced income or mean your retirement nestegg is not there for you when you need it.

The second strategy is to be a mortgage co-borrower, which means you’re on the hook for mortgage repayments if your child misses them.

The third strategy is to be a guarantor on a mortgage, which can constrain your own ability to borrow and may put your property at risk if your child defaults on their mortgage repayments.

A Household Loan removes these risks because it doesn’t have to be repaid until you leave your home or it's sold. You could even agree a regular repayment schedule with your child; payments could be used to make interest-only repayments on your Household Loan, or agree a lump-sum repayment may pay off your Household Loan at a future date. There is no penalty for repayment of your Household Loan at any time.

A Household Loan enables you to help your children and grandchildren when they need it most and use your Household Capital to help the next generation build theirs.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Before you give your kids money to buy a house or cover education expenses, be clear whether it’s a gift or a loan. If it’s a gift and you receive the Age Pension (or other benefits), you must declare it to Centrelink. The annual limit for gifting is $10,000 (or $30,000 over five years depending on your situation)– anything above that may affect your entitlements for up to five years.

If it’s a loan, it can still impact your pension entitlements. If you lend your children money instead of gifting it, that loan will be treated by Centrelink in the same way as most other investments, with a deemed rate of return – even if your kids weren’t expected to pay you interest or stop paying the interest you agreed.

Importantly, the impact of the loan on your Age Pension isn’t limited to five years, but for as long as the loan is outstanding.

It can also be advisable to provide your kids or grandkids with a statutory declaration stating whether it’s a gift or a loan and if it’s the latter, the terms. We require legal advice for all Household Loans; any terms agreed by you and the recipients should be documented as part of this process. Your Household Loan must be right for you as well as the right thing to do by your kids. In matters of money, emotions can get the better of us. Being clear and upfront will keep everyone secure.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

No. Sorry, but we don’t offer this option today.

This depends on how much your initial loan was when your loan was first taken out, whether your property has gone up in value since then, and whether you have made any repayments on your loan.

Please contact customer support if you wish to discuss whether you can apply for more funds by calling 1300 622 100.

Information on your account is available through our customer portal. If you are unable to access your account online, then you can also contact our customer service team by calling us at 1300 622 100

If you’re not sure how to access your contingency funds, then you can call us at 1300 622 100. Otherwise, please send an email to [email protected] with the following details concerning your drawdown request:

• Your name
• Date of birth
• Address
• Amount you wish to drawdown

We review our support inquiries Monday-Friday, and will get back to you if we require any additional information to process.

If you need to change your account details such as contact info, power of attorney, marital status, occupancy, etc., then please do either of the following:

• Call us at 1300 622 100 to request the change to your account details
• Send an email outlining your requested account change to [email protected].

If you need to change the bank account associated with the allocation of our Household Loan, then you’ll need to call us and/or send an email to [email protected] providing the following:

• BSB and Account Number
• Copy of the first page or top of a bank statement which proves the account is in your name.

Call us at 1300 622 100 or send an email outline what you’d like to change to [email protected] so we can review feasibility depending upon your loan.

You can change or manage your password in the 'manage' section of the customer portal. You must have already completed the First Time Registration process to be able to change/manage your password. To manage/change your password you do the following:

• Log onto the Customer Portal
• Click on ‘Manage’ in the top right hand side of the screen.
• Choose ‘Your Details’
• Choose ‘Edit’
• You will get sent a PIN to your linked mobile phone.
• Enter the PIN and choose ‘Authorise’ then ‘Change’
• Choose a new password with the following minimum requirements:
  • 1 upper case character
  • 1 lower case character
  • 1 symbol
  • 1 number
  • 8 characters or more

Once you’ve changed your password, the next time you log in you should go to the login screen found here, https://householdcapital.xchangeonline.com.au/site/#/login

FIRST TIME USERS:

1. You will receive a loan settlement letter which has instructions on how to log into our portal, and this letter will also contain your required user number.
2. You can either go to our customer page and select Register OR select https://householdcapital.xchangeonline.com.au/site/#/register
   
3. Enter your user number from the settlement letter, email address, and date of birth. Note: If the information you enter doesn’t match our records you’ll encounter issues so please contact us at 1300 622 100, if needed.
4. You will be asked to identify you are not a robot and enter a ‘Captcha’ Code. Suggest you keep using the grey ‘Refresh’ button on the left of the numbers until there is one that is nice and clear to read and enter.
5. If entered correctly, you will get a PIN sent to your mobile number associated with your account when your loan was created. If it doesn’t match, then you will be unable to complete your registration.
6. Enter the PIN
7. Agree to the Terms and Conditions
8. Set up 3 security questions using the drop down option.
   • The first is your mother’s maiden name.
   • Then there need to be two more (unique) questions.
   • If you have problems at this stage, it is possibly a browser problem and you may need to try a different browser.
9. Select Save
10. Your password will be sent to your mobile.
11. Upon receiving the randomly generated 8 characters on your mobile you’ll need to log into your account for the first time by going to the customer portal.
    
12. Enter your user number and enter the random 8 characters generated password received on your mobile, and select Login.
13. You’re now logged into your account.

RETURNING USERS:

1. Go to our customer portal
   
2. Enter your user number and password, and select Login
3. You are now logged into your account.

To make a payment you will need to have internet or phone banking and to know your BPay details. To find your BPay details on the portal use the steps below. Otherwise you can call customer support who can give you these details over the phone.

• Go to our customer portal and login using your user number and password. If you’ve never registered for our customer portal, then please follow the first time registration FAQ.
  
• Go to the Account Details section and scroll down to the BPAY Details to find your BPAY details (Biller Code and Reference)
• Pay as much or as little as they like at anytime.

Note: Paying the loan balance down to $0 is not the same as discharging the loan.

If you pay your loan to $0 and don’t complete paperwork to discharge your loan, then we keep the account open if there are undrawn funds associated with your account.

Note: Interest is only charged to your account monthly. Please be aware that when you pay your loan to $0, accrued interest may still be charged to your account at a later date giving you a positive balance again.

If you sell the home, then the loan needs to be discharged as part of the sale.

To discharge your loan you’ll need to do one of the following:

• Download and complete the Authority to Payout and Discharge Mortgage form and send to [email protected]
• Call us at 1300 622 100 to inform us and request we send you a discharge form.

If you are going to leave the house vacant (no borrowers or nominated occupants) for more than 3 months, then you need to let us know.

If you intend to rent out your house for any period, including short term Airbnb you need to let us know by calling us at 1300 622 100 or by sending an email [email protected]

We need to be made aware of the following changes in your circumstances with regards to your loan status and repayment.

• When you sell your home you’ll need to repay your loan as part of the sale.
• When all borrowers or Nominated Occupants have passed away. The estate has 365 days to repay the loan.
• When all borrowers or Nominated Occupants leave the home to move into aged care we need to be informed. The loan will be reassessed every 2 years in this situation.

A Household Loan can provide a regular income stream, capital - or both! We provide flexibility and choice so you can use your money in a way that best enhances your long term retirement funding.

Taking the money only as you need it will minimise the interest accrued over the life of your loan.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Most equity release products are governed by the National Consumer Credit Protection Act 2009; these protections apply to our Household Loan and other reverse mortgage products.

1]   You remain the owner of your home and the title remains in your name. This gives you 100% exposure to any growth (or loss) in the value of your property, into the future.

2]   You can stay in your home as long as you want to – you have guaranteed occupancy. You cannot be removed from your home by the lender, nor be forced to sell your home at any time against your will, as long as you have met your obligations under the loan, as specified in the terms and conditions of the loan contract.

You do have a responsibility to remain living in your home, to ensure the council rates are paid, to keep it insured and to keep your home well maintained>

3]   You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.

https://youtu.be/ALWkXRuVmBM

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Each type of equity release product has a different cost structure, which is why it’s important to do your research and seek advice where required.

In terms of our Household Loan, we offer the lowest rate reverse mortgage product in Australia. The variable interest rate is currently 4.95%. More information about rates and expenses can be found here.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Equity release is the mechanism through which you can draw on your home equity.

Your home equity can be accessed in several ways:

1] - by selling your home and downsizing – use the excess proceeds of the sale (if any) to top up your retirement savings

2] - through an equity reversion scheme – instead of borrowing against the value of your home, you agree to sell a share of the future sale proceeds of your home in exchange for a capital sum now

3] - the Centrelink Pension Loans Scheme reverse mortgage – this enables eligible pensioners to receive an additional income stream by taking out a loan against the equity in your home

4] - through a standard reverse mortgage – a loan facility that draws on your home equity

5] -through a Household Loan – which enables you to draw on the wealth in your home, your household capital, to improve your long term retirement funding.

Each of these strategies allows you to access a portion of your home’s value to meet your retirement needs.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A Household Loan can provide a regular income stream, capital - or both! We provide flexibility and choice so you can use your money in a way that best enhances your long term retirement funding.

Taking the money only as you need it will minimise the interest accrued over the life of your loan.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Some of our customers are comfortable with a basic level of income – enough to keep on top of the bills, enjoy the occasional meal out and to be able to spoil the grandkids. Others look to enhance their lifestyle and enjoy a few more luxuries in their retirement years. What’s on your wish list?

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Australian retirees have more than $1 trillion saved in their homes. Using just a small portion of that Household Capital™ – or home equity – can provide you with an income stream to complement your super and any Age Pension entitlement. And, during challenging times for financial markets, can be used instead of your super to help you preserve it.

Our Home Income solution can provide regular fortnightly or monthly income to improve your retirement funding. You can set up a long term funding solution, or establish an income to see you through difficult periods. This way, we make it easy for you to deal with your expenses and look forward with confidence.

If your needs are modest and require you to borrow an amount equal to less than 1% of your home equity per year (simply take three zeros off your home value to calculate a modest monthly drawdown), you may qualify for accelerated access to your Household Capital. In this circumstance, when you apply online, your retirement income stream could commence within a fortnight of application.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A home reversion scheme is quite different from a reverse mortgage; rather than being structured as a loan, it's a contract for the partial sale of your home. As such, you don't need to repay it, however the payment you receive for the portion of the home sold is generally significantly lower than the market value.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The benefits of a home reversion scheme include:

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

As well as having upsides, home reversion schemes also have a number of downsides, including:

It's important to understand how different mechanisms used to access the value in your home can affect both your long term retirement funding and home equity over time.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Using a Household Loan, which is a type of reverse mortgage, you can access a portion of the equity built up in your home to boost your long term retirement funding. You retain full ownership of your home and enjoy a range of consumer protections. A Household Loan can provide capital or income, or a mix of the two.

Importantly, home reversion schemes have limited availability; they are generally unavailable outside major cities in certain states and may not be available on homes that are not freestanding. While a Household Loans is subject to some restrictions, it is generally more widely available to retired homeowners.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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 equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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 equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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

And there’s plenty more, too. Give us a call on 1300 622 100 and let’s discuss what we can do for you.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Watch our short video where Luke Rattigan, Household Capital's Chief Operations Officer explains how we make money. https://www.youtube.com/watch?v=eebPgTF-ueE

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

If you are using home equity to top up your superannuation or other investments, you are required to get appropriate 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 entitlements to the Age Pension.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Household Capital requires you to get appropriate legal advice to ensure you understand your rights and obligations, and to confirm that a Household Loan is right for your circumstances.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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.

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 don’t need to make 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 equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A Household Loan is a type of reverse mortgage, so 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.

• 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.

• You cannot end up owing us more than your home is worth.

Watch this short video that describes the consumer protections that apply to our Household Loan.

https://youtu.be/ALWkXRuVmBM

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Reverse mortgages are only available with variable rates; the main benefit of this is that you have flexible repayment options. A Household Loan may be repaid, in part or full, at any time without penalty.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The interest rate on a Household Loan is a variable rate of 4.95% 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 5.01% per annum effective 09 Nov 2020 (5.21% prior date). 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.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Reverse mortgage interest rates are generally higher than a standard mortgage because there is no obligation for borrowers to make repayments until the end of the loan.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The lower the reverse mortgage interest rate on your loan, the more of your home equity you retain and can access to fund your long-term retirement needs. It’s that simple.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

There are many ways in which a Household Loan could improve your retirement lifestyle.

As well as making your home retirement ready, you may need capital to purchase a new car or cover significant medical costs. Some customers like the peace of mind that comes from having a contingency fund for those unexpected expenses that arise from time to time.

Such expenditure can impact your retirement funding. Despite diligently saving for retirement, not everyone has a contingency fund to draw upon and pension income – whether from superannuation, the Age Pension, or both – seldom covers larger expenses.

Drawing on your home equity - your Household Capital^TM- via a Household Loan can help you look forward with confidence and enjoy the retirement lifestyle you deserve.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

It’s important that your home is as safe and comfortable as possible for your retirement years - and you can use a Household Loan to make appropriate renovations or modifications. That might mean installing a stairlift, handrails or a ramp for safety. It might mean a new kitchen, bathroom, or landscaping to make your garden less labour intensive. You can also hire a handyman to do those odd jobs, so there’s no risk of injury trying to DIY.

You can access your Household Loan as a lump sum, which you can then use to make the necessary renovations to make your home retirement ready.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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 equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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

And there’s plenty more, too. Give us a call on 1300 622 100 and let’s discuss what we can do for you.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The Centrelink PLS reverse mortgage is enforceable against your property. When the last borrower leaves your home, or it is sold, you need to repay the principal and accrued interest to the government. The government can enforce the Centrelink PLS reverse mortgage against the departing owners or the estate upon death.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The maximum total loan available is a function of your age, the equity you have in your home and the value of your property. This limitation exists so you don’t end up owing more than your home is worth.

The maximum income available - combined Age Pension and PLS income stream to 150% of the Age Pension rate per annum; this currently corresponds to:

• a maximum $36,121.80 per annum for singles
• a maximum $54,451.80 for couples.

Individual amounts are dependent on whether applicants receive a full or part pension.

Income received via the Centrelink PLS reverse mortgage may be reduced or ceased in the future if the value of your home drops.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The Centrelink PLS reverse mortgage interest rate is currently 4.50% effective 01 January 2020, down from 5.25%. The rate is set by the Minister for Social Services without reference to RBA rates – until January's change, the rate had remained static since 1997.

While there are no establishment fees or monthly account fees, Centrelink may charge costs including legal fees. These costs are determined once the loan application is made and can either be paid immediately or added to the loan balance.

Learn about our Household Loan interest rates.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Launched in 1985, the PLS aimed to assist ‘assets tested’ age pensioners. It was expanded in 1997 to include income-tested age pensioners. Over the first 30 years of the program, the Centrelink Pension Loans Scheme reverse mortgage met the needs of a very small number of retired Australians, primarily rural farm owners.

The scheme was changed again from 1 July 2019 to extend eligibility to a broader range of pensioners of Age Pension age, including those currently receiving the maximum rate Age Pension.

The PLS allows you to borrow up to 150% - or 1.5 times - the maximum Age Pension, paid fortnightly.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

There’s a range of eligibility criteria to qualify for the Centrelink PLS reverse mortgage. These include:

• You must be of Age Pension age
• You must qualify for or receive an eligible payment; this includes the Age Pension, disability support pension and widow’s pension
• You must own real estate in Australia with enough equity to secure the loan
• You must have adequate insurance covering the secured real estate
• You must not be bankrupt or subject to a personal insolvency agreement.

While Centrelink PLS reverse mortgages do provide occupancy and No Negative Equity Guarantees, Centrelink officers who administer Centrelink PLS reverse mortgages are not subject to responsible lending laws.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

There are two simple steps:

First, we need to know your age. The percentage of home equity you can access dependent on your age; it starts at 15% at age 60 and increases 1% each year.

Second, we require information about your home and existing mortgage.

Once you hit the ‘calculate’ button, you will see how much you equity you have to refinance that bank mortgage, as well as any additional home equity available to you. It will also illustrate how much of your home equity you’re accessing compared to your home’s value.

When thinking about refinancing in retirement, there are two big issues – repayments and default.

With a traditional mortgage provided by a bank or building society, regular repayments are required. If you become unable to meet those repayments, you can run the risk of default and the bank forcing a sale or repossessing your home.

With a Household Loan, regular repayments are not necessary and as such, there is no default risk. You are able to stay in your home as long as you wish. Repayment is required once you sell or leave your home.

It’s worth noting, you are able to make regular repayments on a Household Loan if you choose to do so. A Household Loan can be repaid at any time without penalty.

If you’d like to be rid of mandatory regular repayments and have greater choice and flexibility in retirement, you should use our refinance calculator.

Refinancing an existing bank mortgage can improve your available monthly income and transform your retirement – after all, everyone deserves a comfortable retirement lifestyle.

Banks are rarely willing to help retirees refinance a mortgage and we’re often asked whether we can help older Australians refinance a home loan. The answer is yes, although as with all loans, terms and conditions apply.

Our Household Loan can be used to refinance an existing bank mortgage and has three key benefits for retirees over a traditional bank mortgage:

• Improved retirement funding – as you don’t have to make regular repayments, the money you were using to service your loan can instead be used to fund your retirement
• Interest payment flexibility – you can choose to make regular interest repayments, however, there is no obligation to do so
• Guaranteed occupancy – whether you choose to make repayments or not, you have guaranteed occupancy of your home until you choose to leave it. There is no risk of foreclosure for missing a payment.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Home ownership and the family home is a strong part of the Australian identity, one that doesn't change when you retire. Home is where you’ve raised your family, created memories and established your community.

Until recently, most retirees faced with unserviceable mortgage debt felt they had no option but to sell their home. This isn’t an ideal option for everyone – appropriate housing isn’t always available in the right area and most people want to stay in their community.

Downsizing into a smaller home or unit, or even a retirement village, can result in disruption and dislocation and doesn’t always deliver a financial advantage.

Using a Household Loan, it is possible to refinance a mortgage in retirement without needing to downsize.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

If you’re going to refinance your mortgage, whether with a traditional bank mortgage or with a Household Loan, you need to consider the following:

• Do you want to increase the retirement funding available to you?
• Do you want to be able to pay off the loan at any time without penalty?
• Do you want to be able to make interest-only repayments?
• Do you want flexibility?
• Do you want guaranteed occupancy?

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

You can refinance an existing home loan by using your home equity, the savings in your home. This frees up your cash flow to improve your longer-term retirement funding. You can choose to make interest repayments each month or repay the loan when you sell or leave your home. Consumer protections, such as guaranteed lifetime occupancy, are part and parcel of refinancing with a Household Loan.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

There are three key reasons why you should consider refinancing a standard home loan with a Household Loan in retirement:

1] Flexibility and choice - you don’t have to make any regular repayments. But you can repay part or all of your a Household Loan at any time without penalty. It's up to you.

2] Improved retirement income - because there's no requirement for regular payments, the income previously directed to repayments can be used for other purposes.

3] Guaranteed occupancy - Household Loans are a responsible, long-term retirement funding solution that come with a range of consumer protections, including lifetime guaranteed occupancy...even if you choose to make no repayments.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Reverse mortgages are governed by the National Consumer Credit Protection Act 2009; these protections apply to our Household Loan as well as other reverse mortgage products.

1]   You remain the owner of your home and the title remains in your name. This gives you 100% exposure to any growth (or loss) in the value of your property, into the future.

2]   You have guaranteed lifetime occupancy. You cannot be removed from your home by the lender, nor be forced to sell your home at any time against your will, as long as you have met your obligations under the loan, as specified in the terms and conditions of the loan contract.

You do have a responsibility to remain living in your home, to ensure the council rates are paid, to keep it insured and to keep your home well maintained.

3]   You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.https://youtu.be/ALWkXRuVmBM

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Your loan is generally repaid from the future sale of your home. This may occur if you downsize later in retirement or you move into residential aged care. Alternatively, the loan will be paid from the proceeds of your estate.

Of course, if you are able to repay the loan earlier, you can do so without penalty.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Our customers have approached us with a diverse range of needs. These include:

• Setting up a regular income facility
• Refinancing an existing mortgage
• Renovating or modifying their home to ensure it’s retirement ready
• Covering an unexpected medical expense
• Buying a new car
• Helping children or grandchildren buy their first home
• Funding in-home care expenses
• Funding the transition to residential aged care.

We find many of our customers simply like the security that comes from having a contingency fund for those unexpected expenses that can crop up from time to time.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A reverse mortgage allows you to access the equity in your home through a loan facility that doesn't require repayment until you vacate the property./

The amount you can borrow is a function of your age and the value of your home. The older you are, the more you can borrow. The Loan to Value ratio - or LVR - increases by 1% for each year older than 60.

As a guide, if you're aged 60, the maximum amount you can borrow is 15% of the value of your home and if you're aged 75, the maximum amount you could borrow would be 30%.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

A number of banks provide lines of credit or home equity loans that allow homeowners to access the wealth built up in their property.

However, getting credit from the banks has become tougher for retirees since the 2018 Royal Commission into the banking sector. Any form of credit has become less available to retirees who may not have the income to demonstrate they can meet the required repayments.

The regular repayments needed to service a home equity loan or line of credit are likely to reduce your cash flow and therefore your retirement income. Each month, you have to find the funds to satisfy the bank. Many retired Australians tell us they feel insecure knowing their home is subject to repossession in the event being unable to meet repayments.

With a reverse mortgage, you don’t need to make regular repayments, although you can choose to do so. And whatever choice you make, you have guaranteed lifetime occupancy – you can stay in your home for as long as you choose.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The key benefit a reverse mortgage is to improve your long term retirement funding. This, in turn, enables you to:

• Increase your retirement income
• Improve your retirement lifestyle
• Remain living in your own home
• Look forward with confidence

Most importantly, a reverse mortgage allows you to enjoy the retirement you’ve worked hard for.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The purpose of taking out a reverse mortgage loan is to improve your long term retirement funding; it enables you to access the savings in your home without needing to sell it. That way, your home can be both the best place to live and the right way to fund your retirement.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Your age and home value are used to calculate your loan to value ratio (LVR). This must comply with maximums prescribed by the Australian Securities and Investments Commission (ASIC). This determines how much home equity you can access.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The reverse mortgage calculator requires several key inputs:

• The age of the borrower/s (note: the youngest borrower must be aged 60+)
• Whether your home is a house or apartment
• Your postcode
• The estimated value of your home (min $400,000 AUD

Once you submit that information, if eligible, you’ll see an estimate of the amount you may be able to borrow.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

If you’re aged 60+ and would like to pay out a bank mortgage, improve your retirement income or draw a capital sum for renovations or a new car, you should use our reverse mortgage calculator to see how using your home equity could transform your retirement.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The purpose of a Household Loan is to take care of your long-term retirement funding needs.

Using it to top up your super or other investments can extend the longevity of the income stream generated by those investments. Customers using a Household Loan for this purpose are required to get independent financial advice.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Many retirees rely on an income stream from super and the Age Pension to carry them through retirement. A small super balance, even when supplemented with the Age Pension, may not provide adequate retirement funding, denying retirees the comfortable retirement they’ve worked towards. Some retirees may believe the only solution is to downsize.

A house is made of brick and mortar, but a home is full of memories. Downsizing doesn’t just mean a smaller house, it can mean losing your community too. By topping up your super, you can improve your retirement income and look forward with confidence. A Household Loan can keep you where you belong

— in your own home.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Some retirees have been able to build up an investment portfolio over the years to provide a source of capital and income. We recognise that most investments go through peaks and troughs. When they do well, an investment portfolio can be a major source of retirement income. In a market downturn, you may prefer not to draw on a diminishing pool of capital as its ability to generate capital over the longer term will be diminished.

A Household Loan can help in two ways. It can be used to supplement your income during market downturns; this avoids further impairment of your investment portfolio and allows it to recover. Your household capital can also be used to add to your portfolio, to ensure it continues to meet your long-term retirement needs and provide you with choice and flexibility in retirement.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Retired Australians may not have a lot of super, but they do have more than $1 trillion saved in home equity.

A Household Transfer^TM can help you access some of your Household Capital to increase your retirement funding. Topping up your super or other investments can be an effective way to bolster your retirement funding.

Our modelling has shown that an injection of additional funds to a superannuation account can:

• increase the amount of regular pension income you can draw
• increase the longevity of your income stream - in other words, it enables your super to provide income for more of your retirement years.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.