Frequently Asked Questions

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

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

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 15% 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.

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/.

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.

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

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. See how using your Household Capital could improve your retirement income. 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

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

In the situation where a property is zoned purely commercial, it is not possible.

Yes – each loan is given a unique BPay number so your client can make payments into the loan as required. This helps family members or beneficiaries if they wish to pay interest. There is no penalty for early repayment.

Once a client has a loan approved and receives their loan documentation, they are required to have an independent solicitor review the loan contract. Note: the solicitor will not need to complete any conveyancing, simply provide advice on the contract, which is written in plain English. This is for the client’s protection.

In most cases there will not be an impact to the Age Pension, except where a large amount is withdrawn and invested/placed in the bank such that it impacts the client’s asset test or income test.

Reverse mortgages should be drawn down gradually and used as needed; this should not impact the pension and will minimise the amount of accrued interest. We always recommend the client speaks directly with Centrelink 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 Centrelink which has clear gifting rules.

Yes – however, it needs to be clear that the EPOA document enables a reverse mortgage to occur. Accordingly, 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.

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 quickly organise a valuation.

Clients do not require financial advice unless they are borrowing funds to invest in superannuation, shares or other financial investments, a strategy that would require detailed consideration.

We suggest clients borrowing to cover aged care costs (RADs or DAPs) obtain advice from an aged care advice specialist as this is a complex area.

If the client owns an over 55 strata title apartment this is possible, however for retirement villages and leasehold retirement communities we are unable to take security over any land and so cannot assist.

Reverse mortgage regulations require we must deal with “a natural person”; this unfortunately rules out a Household Loan for clients who own property through another structure.

Please send details to [email protected] and one of our specialists will be in touch to discuss it with you.

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

The Moneysmart calculator provides projections to help your clients understand their possible loan balance and equity position over time, using conservative assumptions. The projections need to be provided to the client and submitted with the application.

As well as being very secure, using DocuSign makes the settlements process more efficient and removes any time delay with the postal system.

Please indicate on the Specialist Broker Summary Form (Application Checklist) whether you would like us to text the client to complete a digital VOI to verify their identification.

This is a simple process and once complete, we can provide a copy of the identification report for your files. As long as your clients have a mobile phone with a camera they simply need to follow the steps.

Forward completed application forms and other documents to [email protected]

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.

Depending on your mobility level and health status, there’s a range of in-home care services you can get to improve your quality of life:

• Social support – social activities in a community-based group setting
• Transport – help to get out and about, for shopping, appointments or medical services
• Domestic assistance – household jobs such as cleaning, washing and ironing
• Personal care – help with bathing or showering, dressing and hair care
• Home maintenance – minor general repairs and care of your house or garden
• Home modification – installation of safety aids such as alarms, ramps or support rails
• Nursing care – a qualified nurse makes a home visit for basic medical issues

The waiting list for government-funded in-home care packages is significant. The waiting time can be up to 12 months 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 aged 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 well-being and help you to Live Well At Home™.

The youngest borrower has to be aged 60+.

A reverse mortgage does not have to repaid until you sell your home, in which case it is paid as part of the settlement process. If you remain in your home until you pass away, your estate has 12 months in which to pay out the loan.

Several 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 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. 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 diminish your retirement income. As interest rates increase, so will these regular repayments. Each month, you may 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 of 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.

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.

Your reverse mortgage loan is generally repaid from the future sale of your home. This may occur if you downsize later in retirement or move into residential aged care. Alternatively, the loan will be paid from the proceeds of your estate. Of course, you can repay the loan at any time without penalty.

Wondering how to use the equity in your home? Our customers have approached us with a diverse range of needs. These include:

• Setting up a regular fortnightly or monthly 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.

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 the best place to live and the right way to fund your retirement.

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

• Access capital or income - or both
• Establish a contingency fund
• Improve your retirement lifestyle
• Remain living in your own home
• Look forward with confidence

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%. For more info, download our free 'What is a reverse mortgage?' guide, try our equity calculator or call us on 1300 760 139 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 main challenges for older Australians when it comes to getting a home loan. Firstly, your ability to make repayments, especially once you retire. If you’re already retired and on a reduced income, lenders view this as a higher risk because you may have difficulty keeping up with your payments. As a result, if they lend at all, the bank is likely to charge you a higher rate of interest than those advertised. Secondly, most home loans are repaid over a term of 25-30 years. For older Australians, the lender may conclude that there’s an unacceptable risk of the borrower passing away before the loan can be repaid. If you apply for a home loan, your age will be a significant factor in how the bank assesses your application. It’s likely that the bank will want you to demonstrate how you plan to repay the loan with an ‘exit strategy’, the source and quantum of your retirement income and any assets you could sell to repay the loan if necessary. On the upside, banks look favourably upon those borrowers that have significant equity built up in their home and may use that to balance the risk. It is important to remember that all lenders are required by law to ensure that any finance they provide you, and the repayments that finance requires, does not adversely impact your financial situation. Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

The benefits of a home reversion scheme include:

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

Whilst there is no obligation to make any repayments of the HEAS until you either permanently vacate your property or you, or your estate, sell the property you can make voluntary repayments of some or all of the HEAS loan at any time without penalties or fees. HEAS borrowers can make repayments using a credit card, debit card or BPAY through their Centrelink online account. For those who do not have a centrelink online account you need to mail a bank cheque to Centrelink with your name and Customer Reference Number (CRN) details.

Please note: The Centrelink Pension Loan Scheme (PLS) is now known as the Home Equity Access Scheme (HEAS) as of January 2022. The Centrelink PLS / HEAS 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 / HEAS reverse mortgage against the departing owners or the estate upon death. Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Please note: The Centrelink Pension Loan Scheme (PLS) is now known as the Home Equity Access Scheme (HEAS) as of January 2022. There’s a range of eligibility criteria to qualify for the Centrelink PLS / HEAS 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 / HEAS reverse mortgages do provide occupancy and No Negative Equity Guarantees, Centrelink officers who administer Centrelink PLS/HEAS reverse mortgages are not subject to responsible lending laws.

The Reserve Bank of Australia (RBA) has indicated that it might start easing (or lowering) rates later in 2023 or, at least in early 2024. At that time, Household Capital will lower its rate accordingly.

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

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.

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

When it comes to residential care, there are three main layers of cost:

• Basic daily fee, which is a flat fee paid by all residents to cover daily living expenses and is set at 85% of the single-person rate of the Age Pension.
• Means-tested care fee, which is an extra contribution that some people pay, as determined through a means assessment.
• Accommodation fee, which covers the cost of accommodation in the aged care residence and its maintenance.

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).

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

Some of our customers have needed to make the transition to residential aged care. 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-assessable 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 when 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).

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. 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 Loan 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. See how using your Household Capital could improve your retirement income. Live Well At Home™

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.

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. See how using your Household Capital could improve your retirement income. 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. See how using your Household Capital could improve your retirement income. Live Well At Home™