Household Capital, an independent, specialist retirement funding provider, announced today it will again reduce the interest rate on its Household Loan in line with the RBA’s rate cut. Household Capital now offers the lowest rate to older Australians needing to access their home equity to improve their retirement funding.
Household Capital’s innovative approach to wholesale funding and building strategic partnerships means it can offer this lower rate.
Dr Joshua Funder, Chief Executive Officer, said, “Our innovative approach to wholesale funding means we can sustainably offer Australia’s lowest rate to retirees needing to access their home equity.”
“To honour our commitment to keep rates as low as possible, we passed on the full 0.25 percent rate cut last month; we’ll also pass on this rate cut, in full, to our clients.”
Major retirement funding need
Since launching in March 2019, Household Capital has verified a strong need for improved retirement funding among Australia’s retirees.
“Australians are living longer but many do not have enough super savings to provide sufficient income throughout retirement,” said Dr Funder.
“We’ve fielded calls from financial advisers, brokers and aged care advisers, as well as direct clients, looking to access home equity for a range of purposes.”
“Lowest rates are important to ensure the best interests of clients are fully considered.”
Household Capital provides Australian homeowners access to additional retirement funds by using a low interest rate loan to transfer a portion of the value of their homes to meet a range of long-term needs including income, housing, contingency funding and aged care.
Low rates not good for everyone
Low rates aren’t cause for celebration for everyone, particularly those retirees dependent on interest earned from savings in term deposits.
“With interest rates in Australia at historic lows, many retirees are really feeling the squeeze,” said Dr Funder.
“We can help these people by providing responsible access to their home equity to improve their retirement funding.”