Home Loans for Pensioners: What Are the Home Loan Options When You’re Over 60?

We understand that stepping into retirement can bring financial questions. If you’re over 60 and want to access your home equity without selling the home you love, home loans for pensioners may provide flexible options to help you live well at home.

Two thoughtful solutions stand out to support your retirement journey: the Household Loan, which is a reverse mortgage, and the government-backed Home Equity Access Scheme (HEAS). Each works differently but can help you unlock the wealth in your home with confidence.

Retirement income constraints

Many retirees face the challenge of making fixed incomes stretch further. With limited superannuation and rising costs for healthcare, utilities, and everyday expenses, traditional retirement income can feel constrained.

You’ve worked hard to build your retirement nest egg, yet the reality is that many Australians find themselves asset-rich but income-poor in their later years. This financial squeeze doesn’t have to define your retirement experience.

Home equity as a financial resource

After decades of home ownership, you’ve likely built significant equity in your home. This home equity can provide the financial flexibility you need to enhance your lifestyle in retirement, all while staying in the home you love.

And these days, accessing this wealth in your home doesn’t mean losing your home or compromising your security. Modern solutions, such as the Household Loan, are designed to help you unlock this wealth responsibly and safely, provide flexibility and give you the confidence to live well throughout retirement.

How it works:

The Household Loan, Household Capital’s reverse mortgage product, allows you to unlock the wealth in your home and provides flexible payment options: a lump sum, regular income payments or a combination of the two, without the burden of having to make regular repayments. All this while you remain in your home.

Your borrowing capacity starts at 20% of your property value at age 60, then increases by 1% each year. The loan is repaid when the last borrower no longer lives at home.

Risks and protections:

Our Household Loan comes with important built-in safeguards that provide our customers with peace of mind:

• No negative equity guarantee: you cannot owe more than your home is worth
• Guaranteed lifetime occupancy: you cannot be forced to sell or move out of your family home
• Government regulated: Governed by the National Consumer Credit Protection Act 2009

While interest compounds over time, these protections ensure your security and that of your estate. As Australia’s dedicated retirement funding specialist, Household Capital combines institutional strength with the empathy, transparency, and flexibility you deserve.

The HEAS (formerly the Pension Loans Scheme) is government-backed and provides a secure alternative to commercial home loans for pensioners.

Key advantages:

• Lower interest rate: significantly lower than commercial alternatives
• No regular repayments: interest compounds and the loan is settled when you no longer live at home
• Government backing: offers additional security and confidence
• No negative equity guarantee: protecting you and your estate

Flexible access options:

You can choose how to receive funds based on your needs:

• Fortnightly payments: regular top-ups to supplement your pension, capped at 150% of the Age Pension rate
• Lump sum advances: Access larger amounts when you need them, up to twice per 26-fortnight period

Consider these important questions to guide your decision:

• Do you need steady income or a lump sum?
• Do you want to preserve equity for your estate?
• Are you planning to stay in your home long term?
• What are your long-term care and housing needs?

Because home loans for pensioners involve accessing significant home equity, seeking trusted, independent financial and mortgage broker advice can provide the confidence and clarity you need to make the right choice for your unique situation.

When it comes to home loans for pensioners, Household Capital offers a solution that supports your retirement with flexibility, security, and peace of mind.

We’re dedicated to helping you Live Well At Home™. Our Household Loan is designed specifically for Australian home owners over 60, combining trusted advice with flexible solutions built on empathy, transparency, and expertise.

Ready to take your next step toward financial confidence?

Speak with our retirement funding specialists to discuss your situation and explore what may work for you.