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Household Capital adds two C-suite execs to its growing team

Josh Funder   CEO - Household Capital
May 27, 2020 2 MIN

27 May 2020: Household Capital, an independent, specialist retirement funding provider today announced it has further expanded its team. On the back of strong growth and following the recent appointment of a Customer Operations Manager, Household Capital has added two specialists in operations and risk management. 

Luke Rattigan has been appointed to the newly created role of Chief Operating Officer, with a primary focus to scale the business for further growth. He will be responsible for ensuring the right processes, people and planning are in place as Household Capital looks to grow and launch new services to help Australia’s retirees access the retirement funding they need for a comfortable lifestyle. 

Luke joins Household Capital from consumer electronics start-up Nura, where as Chief Commercial Officer he oversaw the implementation of a new business model to disrupt the headphones industry. His background also includes senior roles as COO at Sportsbet, as well as RELX (formerly Reed Elsevier) and as an economist for the Productivity Commission. 

Commenting on his appointment, Luke said, “I'm excited to work for a business that is solving a real problem for an important cohort of Australians - helping Australians be better off in retirement.” 

Josh Funder, Household Capital’s CEO, commented, “Luke brings demonstrable experience in scaling new and innovative businesses.” 

Chris Bishop has worked with Household Capital as a consultant since 2018 and is responsible for implementing the stringent credit management policy framework within which the business operates. He was recently appointed Chief Credit Officer on a full time basis, and will continue to provide credit policy and procedures development, implementation and management, as well as credit approval authority. 

Chris is a qualified lawyer, with specialisation in credit and risk management. He has held a number of senior legal, company secretary and line management roles. He was the first to hold the new role of Head of CBA Retail Bank Compliance, is a previous Director Legal Australian Bankers’ Association and previous Head of Credit for Telstra. 

Commenting on his ongoing role Chris said “Delivering ‘Live Well at Home’ solutions for senior Australians is hugely rewarding. Household Capital is leading the way in providing responsible access to long-term home equity retirement funding. We are able to provide high quality credit to retired Australians throughout their retirement and meet a major unmet need.” 

Commenting on Chris Bishop’s appointment, Josh Funder said, “With superannuation and investment portfolios decimated, and dividends and term deposits at all-time lows, Australian retirees need help to fund their retirement.” 

“We are delighted Chris has agreed to join us on a full time basis. His expertise will help us to continue delivering innovative solutions to provide Australians with flexibility and choice in retirement, and importantly the confidence to Live Well At Home.” 

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.

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Household Capital fast tracks funds for retirees in need

Josh Funder   CEO - Household Capital
May 20, 2020 2 MIN

May 2020: Retirees facing financial shortfalls will be able to apply for ‘accelerated access’ to draw on their home equity, after independent specialist retirement funding provider Household Capital overhauled its product features and application process to meet the needs of senior Australians during the COVID pandemic.

Household Capital today announced the ‘rapid access contingency’ $20,000 home equity offer to deliver financial assistance more rapidly to the thousands of retirees hit hard by the global economic downturn. The company also announced the Household Capital Home Income, a regular drawdown on home equity to allow retirees to maintain their retirement lifestyles.

Household Capital chief executive Josh Funder said the rapid funding would provide a financial boost for retirees facing a loss of income due to falling dividends, term deposit rates and rental income.
“We know retirees are doing it tough and facing reduced incomes due to shrinking super balances and investments.” “The Government stimulus package focused on working Australians and while the banks have provided interest repayment holidays, none of that has helped retired Australians get through the crisis.”

“Stepping up to offer $20,000 to cover living expenses or help out kids or grandkids who have lost jobs in the pandemic is the right thing to do, at the right time,” Funder said.
Applications for the $20,000 finance package and Home Income will be fast tracked, with the funds typically available within two weeks. Regular interest repayments are not required, and applicants can pay back the money at any time without financial penalty. In contrast, applications for the Federal Government’s Pension Loans Scheme must be made through Centrelink, with estimated wait times of up to nine months, and payments only available in twice-monthly instalments.

“We don’t want people to have to wait – they need access to their savings to meet their current needs as well as fund their long-term retirement,” said Funder.
“Smaller loans like these are not profitable to originate in a business sense, but we view it as a service to make sure Australian retirees have access to their savings when they really need them.” Home equity is the third pillar of retirement funding. Drawing on home equity when other sources of income are reduced is a sensible option when you consider most Australian retires have much more saved in their homes than in their super or investments.

In total, Australian retirees have $1 trillion tied up in home equity. Freeing up some of those funds from their largest retirement asset enables them to continue to live well in their own home and, just as importantly, in their community.

“We have certainly experienced a surge in inquiries in the last couple of months, so I think retirees who are now spending more time at home than ever are realising the value of their home, seeing where they can make improvements or accommodate their future ageing needs, so they can remain in their home for longer,” said Funder.

“It’s becoming clear to retired Australians that their homes are both the best place to live as well as the best way to fund their retirement.”

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.

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New director appointed to Household Capital board

Josh Funder   CEO - Household Capital
April 29, 2020 1 MIN

29 April 2020: Household Capital, an independent, specialist retirement funding provider today announced Danny Gorog will join its board of directors

An entrepreneur and technology specialist, Danny brings deep expertise in the development of mobile apps, digital platforms, customer experience technology and providing strategic advice. 

Danny is a founder, investor and currently CEO of Snap Send Solve, a technology platform that simplifies the reporting of community issues in Australia and New Zealand. In 2009 Danny co-founded Outware Mobile (outware.com.au), Australia’s leading mobile app development company. Outware develops apps for ASX-100 companies including ANZ, Coles, NAB, NIB, Qantas, RACV, Seek and Telstra. In 2015, Outware was sold to ASX-listed Melbourne IT. 

Danny is an active investor in early stage start-ups. He is currently a director and board member of Melbourne Symphony Orchestra, a director of ASX-listed DWS Group and a trustee of the Telematics Trust. 

Josh Funder, Household Capital’s CEO, commented, “Danny brings Household Capital superb entrepreneurship and technical focus with a real passion for transforming customer experience.” 

“We use technology to fulfil our longstanding mission to help Australians Live Well At Home TM and deliver home equity as a core part of Australian retirement funding.” 

“Danny’s appointment will provide a strong resource and sounding board for our tech and management teams to draw on.” 

“I’m excited to join a growing team meeting a major national need,” said Danny Gorog. 

Household Capital is an exciting Fintech that has the opportunity to use technology to transform the customer experience, understanding and outcomes of home equity retirement funding.” 

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Household Capital adds UK home equity market expertise to team

Josh Funder   CEO - Household Capital
April 21, 2020 1 MIN

21 April 2020: Household Capital, an independent, specialist retirement funding provider today announced it has expanded its team with the addition of key expertise in retirement funding customer operations.

Jay Sewell has joined Household Capital from UK-based Age Partnership, a leading provider of home equity funding. Jay held the role of Head of Retirement Funding for eight years, during which time he oversaw significant business growth, with Age Partnership taking a 28 percent share of the UK’s £3 billion per annum market. Jay played a key role in helping the UK equity release market achieve six years of double-digit growth as the UK’s fastest-growing credit sector.

In his newly created role, Jay will lead Household Capital’s customer operations to support distribution and work closely with the technology, credit and customer service teams to deliver the best customer experience and help the business achieve its operational and strategic objectives.

Commenting on his appointment, Jay said, “When I first met with Household Capital, I felt a real and genuine connection to the people within the business, the business itself and its vision.” “I am genuinely excited to be part of such an innovative and forward-thinking business that is at the forefront of the retirement market, stands with Australians and delivers improved retirement funding.”

The UK equity release market is significantly more developed than its Australian equivalent. In 2019, nearly £4 billion of housing equity was accessed by older homeowners. Earlier this year, Legal & General, one of the largest providers of equity release products in the UK, took an equity stake in Household Capital, citing Australia as a market with lots of potential.

Josh Funder, Household Capital’s CEO, commented, “Jay brings demonstrable experience in building a client service capability designed to delight clients. Australian retirees have saved $1 trillion in home equity.” “With superannuation and investment portfolios decimated, and dividends and term deposits at all time lows, Australian retirees need help to fund their retirement.”

“Household Capital’s longstanding mission is to help Australians Live Well At Home™ and deliver home equity as a core part of Australian retirement funding.”

“Jay comes to Household Capital having been a leader in building a 600-strong business and his team was awarded the ‘Number one net promoter’ score across UK financial services companies; we look forward to learning from his insights and working with Jay to deliver quality retirement funding solutions to our customers as the business grows.”

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Household Capital closes Series B financing with strategic investment from UK’s Legal & General

Josh Funder   CEO - Household Capital
March 10, 2020 2 MIN

10 March 2020:

Household Capital has announced the completion of a Series B financing, with UK global asset manager and financial services provider Legal & General acquiring a 20 percent stake in the Australian company. Existing and new investors joined Legal & General in the Series B financing, which takes the total amount of equity capital raised by Household Capital to $25 million since launching in 2017.

Legal & General’s strategic investment, Household Capital’s first non-domestic, multinational investor, will be used to underpin the Australian home equity retirement funding provider’s corporate growth, and build on its early success.

Legal & General – a leading provider of insurance, annuities and lifetime mortgages in the UK and a global asset manager with close to £1.2 trillion in assets under management – is dedicated to helping institutions and individuals in all phases of pension and retirement planning. Household Capital will benefit from this deep understanding of retirement markets, asset management and market leading experience of equity release and product innovation.

Joshua Funder, Chief Executive Officer of Household Capital, said, “Legal & General’s strategic investment shows when it comes to tackling the challenge of our burgeoning retirement-age population, global investors see Australia as a significant market opportunity.”

“We’re excited to have an investor on board with experience in this market segment and who recognises that Household Capital is an innovator in home equity retirement funding with a clear values-based focus on customer outcomes.”

Chris Knight, Chief Executive Officer of Legal & General Retail Retirement said, ‘‘This is a great opportunity to invest in a dynamic business, in a market with lots of potential. It reflects our commitment to improving the opportunities available to everyone at retirement, regardless of where they may be, so that they can live longer, healthier and happier lives.”

“The Australian equity release market is extremely promising, with Household Capital at the forefront of developing innovative funding options for retirees. We’re looking forward to working together to help grow the scale of the business so that consumers have better options at this critical life stage.’’

Series B fundraising

The Series B fundraising will enable Household Capital to continue to meet its growth objective; to provide retired Australian homeowners with solutions to their increasingly complex retirement funding needs.

The funds raised will be used to grow Household Capital’s team, to enable the business to continue to provide the high quality personalised service for which it’s become known. It also plans to expand its offering of innovative home equity retirement funding solutions, increase its marketing footprint and continue to invest in technology.

Legal & General and incoming Series B investors join the company’s initial investors, including ME Bank, which holds both an equity stake and has provided Household Capital’s initial debt facility.

Combined with its strong digital offering, local market expertise and innovative wholesale debt structure, Household Capital will continue to meet its growth objectives, providing retired Australian homeowners with solutions to their increasingly complex retirement funding needs.

Nick Sherry, Chair, Household Capital and former Federal Minister for Superannuation and Corporate Law said, “It is a myth that Australians downsize. They want to continue to live in their homes and in their community.”

“Drawing down part off the capital in their home can help many retirees achieve their objectives and maintain a good lifestyle.”

“Our investors know that growth in home equity retirement funding is not only necessary – it’s inevitable.”

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.

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Australians not feeling supported by the retirement funding system

Josh Funder   CEO - Household Capital
February 3, 2020 2 MIN

03 February 2020: Household Capital, an independent, specialist retirement funding provider has completed its submission to the Retirement Income Review in response to the government’s consultation paper released in November 2019.

The purpose of the Retirement Income Review is to ascertain the degree to which retirees are supported by the three pillars of Australia’s retirement system; superannuation, the Age Pension and other savings, including home equity.

However, as evident from a recent survey, Australia’s retirees do not feel fully supported by the Australia’s retirement funding system.

Household-Capital-Retirement-Income-Review-submission2

The three pillars of retirement funding have not, to date, adequately supported all Australians for several reasons:

  • Australians are living longer, a fact that’s often communicated with rhetoric around this being an economic burden or threat
  • Australia’s retirement system was not designed to support retirees for 20-30 years of life beyond work
  • Superannuation came in too late for most baby boomers; accordingly, the median account is $200,000 at retirement (less for women), which provides income for around 10-15 years
  • The Age Pension is inadequate as a sole source of retirement funding
  • Home equity, the largest pool of savings for most retirees, has not been appropriately and effectively made available to improve retirement funding.

Household Capital’s CEO Dr Josh Funder commented, “By helping retirees to better access and responsibly use home equity for retirement funding, several important areas of social and economic policy can be addressed.”

“Retirees are a large group with significant inaccessible wealth in home equity and major unmet needs in consumption for wellbeing.”

“By unlocking home equity to improve retirement funding, we can enhance both the quality of life in retirement and economic activity.”

Household Capital has made several recommendations to the Retirement Income Review, including:

  • The government’s ‘downsizer measure’ permits the concessional treatment of $300,000/$600,000 (single/couple) from the proceeds of downsizing. Older Australians should be incentivised to use their home equity to improve their retirement funding by having this measure applied to all forms of equity release. This improved policy would support ageing and help the economy with no additional tax expenditure.
  • Australian retirees feel abandoned by the banks and need access to capital and income throughout the course of their retirement. Home equity can provide both capital and income, and help retirees mitigate longevity and contingency risks.
  • There should be a requirement for all superannuation funds to offer a comprehensive retirement income package to members. This would offer appropriate products to ensure retirees have adequate retirement funding and should include access to home equity retirement funding. This should be a legislated minimum service provision for all super funds.
  • Reverse mortgage brokers are exempt from a best interest test and prohibition of commission based sales. Mortgage brokers selling reverse mortgages should not be exempt from tougher regulations that apply in respect of financial advice.

“The broad policy and legislative framework for responsible access to home equity is in place, is comprehensive and sound,” said Dr Funder.

“There are no major barriers to the transformation of home equity to play a foundation role in funding retirement.”

“Australians know that the family home provides retirement lifestyle, wellbeing, housing and funding. The federal government must support the retirement funding sector to deliver better outcomes in retirement.”

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Exclusive launch: the Household Capital Index for Home Equity Retirement Funding

Josh Funder   CEO - Household Capital
January 22, 2020 3 MIN

22 January 2020: – Household Capital has launched a new Australia-wide property index – the Household Capital Index. For too long, property indicators have focused on historical data and the short term outlook – how good is your home to flip or downsize next year? The Household Capital Index provides homeowners with a different view: how good is your home to provide long-term retirement funding?

Australian retirees are living longer than ever. Most baby boomers don’t have enough superannuation to trust that it will get them through,” said Josh Funder, CEO of Household Capital.

“The Household Capital Index helps Australian homeowners have confidence in drawing on their own home equity to provide long-term retirement funding. Overall, the analysis shows that over 98% of the sample postcodes have consistently delivered positive home equity to support retirement funding over the past 40 years – most retired Australians can rely on the home equity they saved.”

The Household Capital Index ranks postcodes and suburbs across Australia according to how likely the current value of home equity can provide long term retirement funding. All postcodes above 50 are high quality home equity areas where there is strong confidence in the long term outlook.

How will this help Australian retirees? A higher relative Household Capital Index score means that homeowners can expect to have a greater part of their home equity available to them to draw on over the course of their retirement. A higher Household Capital Index score doesn’t change how much home equity is available at any given age, but it does help people to draw responsibly on their home equity now and in the future to self-fund their retirement.

“We’ve modelled historical home equity performance across Australia and added a range of forward looking factors which are specific to long-term home equity retirement funding,” said Funder.

Some of the key factors taken into consideration are:

  • Historical performance: 40 year nationwide performance of suburb-specific home equity performance
  • Negative equity risk: statistical analysis of the intersection of property prices with interest rates including historical property slumps
  • Macro factors: immigration, urban planning, economic trends
  • Localised retirement housing market outlook: sub-postcode supply, demand and volatility for retirement housing
  • Transacted and untransacted property: includes housing which is not going to be sold or downsized
  • Economic drivers: local employment and wealth parameters
  • Housing stock: long term patterns of property mix including apartments and houses

The Household Capital Index integrates data from a wide variety of sources including CoreLogic, Australian Bureau of Statistics, Reserve Bank of Australia, National Seniors, major superannuation funds, and Household Capital.

“There is no average baby boomer and each home is unique,” said Funder.

“Australian retirees are making their own plans to live well at home over the longer-term. Each household should understand their own needs and plans. Australians can have confidence in their own home equity retirement funding.”

Highlights

  • Forrest ACT: high incomes, stable federal employment make home equity in Forrest the leading suburb in this sample
  • Kew & Red Hill: a couple who have a family home in Kew and a holiday home in Red Hill could have greater confidence in their home equity retirement funding than a couple with a home in Toorak and holiday home in Portsea (below)
  • Diverse suburbs: from prestige harborside Rose Bay or inner city Paddington to Pennant Hills and north coast Tweed Heads, home equity provides a strong foundation for retirement funding. In Victoria, outer suburban Box Hill, Springvale and Epping provide a positive longterm home equity outlook.
  • Seaside Sandringham VIC is at least a good a place to retire using home equity retirement funding as bayside Albert Park VIC
  • Frankston, Mildura and the Mornington Peninsula in Victoria have similar profiles for the purposes of long-term home equity draw down.
  • Toorak & Portsea: while a couple owning a home in Toorak and a holiday house in Portsea might have greater total home equity than the couple in Kew/Red Hill, higher top-end volatility in Toorak and Portsea makes home equity in those suburbs less stable in the longer term, suggesting a slightly more conservative approach to retirement funding.
  • Karatha, WA, is well below 50 on the Household Capital Index. A fly-in, fly-out workforce, volatile employment market, few retirees and remote location make Karatha a less reliable area to use home equity retirement funding.

new south wales - home equity by postcode

Victoria -home equity postcode

queensland home equity by postcode

other states and territories home equity by postcodeall state home equity by postcode sample

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Household Capital expands its team

Josh Funder   CEO - Household Capital
October 19, 2019 2 MIN

October 2019: Household Capital, an independent, specialist retirement funding provider today announced it has expanded its team with three key hires across marketing and technology. 

The first of these is Mario Garrido as Chief Marketing Officer. He joins Household Capital from AustralianSuper, where he was Head of Brand, Retention, & Direct Growth Strategy. His background includes consumer marketing and customer experience roles at a number of major companies, including Village Roadshow, Nova FM and Telstra. 

On his appointment, Mario commented, “After almost five years at Australia’s largest super fund, I learned that super savings and the Age Pension will not be enough for most Australians to live an adequate or comfortable retirement.” 

“Joining Household Capital for me means continuing the battle for retirement adequacy, helping Australian’s thrive in retirement by unlocking the benefits of their hard work in savings in their homes through their working life.” 

Josh Funder, Household Capital’s CEO, commented, “Mario’s expertise with direct marketing and customer experience will help us take our message to a larger number of Australia’s retirees.” 

The second appointment is Matt Chalmers, who joins Household Capital as Chief Technology Officer (CTO). In his role, Matt will be focused on developing an overarching technology strategy and roadmap for Household Capital and building a technology platform that is scalable, insightful, and serves the needs of senior Australians. 

Matt joins the business with a wealth of technology experience, having spent more than a decade at IRESS, followed by roles with a number of fintech start-ups. 

In commenting on his role, Matt Chalmers said, “I’m pleased to be working with the Household Capital team – this is a thoroughly enthusiastic, customer focused, and tech-enabled company.” 

The final appointment is Brenton Kaitler, who joined Household Capital as Manager of Program & Platform. Brenton has an extensive background in building corporate start-ups, analytics and technology, which will be his key focus. 

Prior to joining Household, Brenton constructed and managed RACV Mobile Tyres, a corporate start- up for RACV, now one of their key member pillars. He has extensive business building, risk pricing and technology experience, with a strong ability to understand and integrate disparate components into a homogeneous customer offering for a business. He has held senior roles in pricing, portfolio management, innovation and general management at Suncorp, GE and RACV. 

In commenting on his role, Brenton commented, “I’m super excited to join the team – working with a passionate group of people working on a solution that has both strong societal impact and financial growth prospects is hugely exciting.” 

In commenting on these technology appointments, Josh Funder commented, “I’m delighted to welcome Mario, Matt and Brenton to the team.” 

“Each has deep experience in the fintech sector and will be able to provide thought leadership and support to the Household Capital executive through their respective industry experience and insight.” 

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Family home recognised as third pillar of retirement funding by federal retirement income review launching this week

Josh Funder   CEO - Household Capital
October 19, 2019 1 MIN

15 October 2019: The family home could become a significant part of Australia’s retirement funding solution, after home equity was specifically included in the terms of reference for the federal government’s review of retirement income.

The first major inquiry into Australia’s retirement savings system begins this week and the three person independent panel has been tasked with identifying the role played by “voluntary savings, including home ownership” in Australia’s retirement funding system.

The family home’s inclusion was welcomed by Dr Joshua Funder, CEO and Managing Director of independent specialist retirement funding provider, Household Capital.

“For most Baby Boomers, voluntary savings outside of superannuation means the equity in their home. For Australian homeowners entering retirement, available home equity can double their superannuation and help fund their retirement for years to come.” said Dr Funder.

“As the federal government has affirmed in the terms of reference of the recently announced retirement income review, the family home is much more than housing. It’s a store of retirement savings in its own right that remains largely untapped as Australia looks for ways to adequately provide for retirees in a way that’s fiscally sustainable.”

With the Prime Minister and Treasurer publicly repeating their assurance that the government would "never" include the family home in the asset test for the age pension, Dr Funder says our homes can become a crucial part of the third pillar of Australia’s retirement income system. Their specific inclusion in the terms of reference reflects a shift in thinking about the role the family home could play within Australia’s complex retirement income system.

“Few people have much “voluntary savings” outside super and their home, so it makes sense for the third pillar to explicitly include the biggest pool of super savings in Australia – the $1 trillion already saved by retirees in their home equity” said Mr Funder.

“The notion that your nest is also your nest egg would be no surprise to the 4.5 million retired homeowners whose home equity is more than their superannuation savings.”

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.

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Household Capital offers lowest rate reverse mortgage in Australia

Josh Funder   CEO - Household Capital
October 1, 2019 2 MIN

01 October 2019: Household Capital, an independent, specialist retirement funding provider today announced it will further reduce its interest rate, passing on, in full, today’s RBA rate cut. Household Capital has reduced its interest rate in line with each of the three RBA rates cut this year.

Lowest rate

Household Capital’s innovative approach to wholesale funding means it can offer a rate significantly lower than its competitors, including the government’s Centrelink Pension Loans Scheme (PLS), which is set at 5.25%. Household Capital’s rate will now be 5.15%. Dr Joshua Funder, Chief Executive Officer, said, “Being able to offer the lowest possible rate to retirees is important; a lower rate of compounded interest over time means our clients will benefit from preserving more home equity throughout the lifetime of their loan.”
“Our rate cut ensures Household Capital offers the lowest cost access to home equity.”

Centrelink Pension Loans Scheme

The revamped PLS, relaunched on 1 July 2019, is a reverse mortgage type product that’s administered by Centrelink and provides for an enhanced income stream. It does not, however, provide for all retirement funding needs.

“Improved retirement income is important but does not address retirees’ capital needs; you can’t always cover major medical expenses, or replace a leaky room, or appropriately modify a home from the pension,” said Dr Funder.
“Household Capital provides Australian homeowners flexible access to capital; this may include a regular income stream, improved housing, contingency funding for unexpected expenses or funding the transition to aged care.”

Mortgage stress in retirement

Although an interest rate cut might help the hundreds of retirees who are still paying a mortgage, it’s unlikely to alleviate the financial stress being experienced by so many.

The recent report by Australian Housing and Urban Research Institute (AHURI) found more older Australians are finding it difficult to pay off their mortgage debt before they retire; the average mortgage debt among older Australians has blown out by 600 percent since the late 1980s.

“Keeping up with mortgage repayments can really eat into retirement funding; most retirees aren’t on the low introductory rates you see advertised, so they’re really doing it tough,” said Dr Funder.

Refinancing a forward mortgage with home equity not only frees up their retirement funding, the consumer protections governing reverse mortgages removes the risk of default, the risk of the bank taking the family home.”

Low rates are not good new for retirees

For those retirees reliant on interest income to fund their retirement, lower rates are another blow. Many risk averse retirees are not prepared to invest in higher yielding assets, so are really feeling the pinch.

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. These may include income, housing, contingency funding and aged care.

“We can help older Australians by providing responsible access to their home equity to improve their retirement funding,” said Dr Funder.

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