It’s been a tough year for Australia’s retirees as they’ve seen their income affected by a series of events both unforeseen and unplanned for. Super balances have plummeted, dividends have been dumped or deferred and rental income streams dried up. Money in the bank? Term deposits are at historic lows and seem set to plumb new depths.
However, it’s not all bad news.
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 an income stream that will complement your super and any Age Pension entitlement – and, at times like this, can be used instead of your super to preserve it.
Our Home Income solution provides you with a regular fortnightly or monthly income stream to improve your retirement funding. You can set up a long term funding solution, or establish an income to see through this challenging period.
Using a Household Loan, you can access your home equity which is then paid to you as a regular amount at regular intervals; that 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 (or 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 your application.
Regular interest repayments are not required. However, you have the flexibility to pay back your loan at any time without financial penalty.
All the usual consumer protections apply:
- You retain 100% ownership of your home
- You cannot default or be removed from your home
- The ‘no negative equity guarantee’ applies