Why Household Capital?
Household Capital works with you to get the best retirement outcome for your clients.
We recognise that retiree lending requirements may represent a small number of your overall client needs, we have established a referral process to recognise your unique service proposition and simplify our work with you. If you believe that reverse mortgages will increasingly become a core part of your business, you can become an accredited broker.
If you are a credit representative, we will pay you a referral fee of 0.3% upon settlement of a Household Loan for clients referred to Household Capital
Since our acquisition of Pension Boost in 2022, we have two options available for your clients and can select the most appropriate:
The federal government's Home Equity Access Scheme (HEAS). For those clients with modest needs, such as a small amount of extra income or a lump sum payment to cover minor expenses, HEAS can be a great option. Note clients referred for this service pay a small fee for assistance to apply for the HEAS through Centrelink.
Our Household Loan, a variable rate reverse mortgage that comes with a range of consumer protections for your clients and can be drawn as:
- a regular income stream
- refinance to discharge existing debts, including a mortgage, line of credit or credit card/s
- a lump sum to meet capital needs, such as health care, home renovations or a new car
- a combination of income and capital, depending on your client's needs and existing financial assets
Where a client may need to draw on the ‘bank of mum and dad’ to pay their deposit on a property, Household Loan can facilitate intergenerational wealth transfer whereby the parents draw on their home equity to provide the required funds.
Client case studies
- Clients aged 60+ who own and live in their home
- Available in most metropolitan and major regional areas
- Property is worth $600,000 or greater
- Property types include houses, apartments/units located on less than five hectares
- Owner occupied and non-owner occupied considered
- Applications may also be applied for under Power of Attorney subject to lender's approval
Check the eligibility of your client’s postcode#
Properties outside a major township will be reviewed on a case-by-case basis
#Properties that appear as "refer" or are showing outside immediate eligibility may be considered on a case by case basis. Please email the property details to [email protected] for consideration.
How we work with you
We have built a simple three step process to work with you and keep you up to date about your client. Once you have become a referral partner by completing this form, working with us is simple.
Use our calculator to run a quick assessment or complete a more detailed projection to support your initial client conversation.
Refer your client using this form. We will initially use this information to check we can assist your client. For unconventional scenarios we will contact you for a more detailed discussion.
Your client is allocated a retirement specialist provides personalised service. You receive updates at key milestones throughout the process.
Meet the team
At what age can my client access a Household Loan?
Homeowners aged 60+ can access a Household Loan. Please note, if there is more than one person on the title, both parties need to be aged 60+.
Does my client need to be retired to access a Household Loan?
As long as your client meets the age requirement, retirement is not a prerequisite.
Who do I contact to discuss a scenario?
Please send details to [email protected] and one of our specialists will be in touch to discuss it with you.
Can my client use a Household Loan to refinance an existing mortgage?
Yes – as long as the LVR accommodates the outstanding balance, a mortgage (or other debts) can be discharged.
Can my client access income and capital through a Household Loan?
Yes – your client can draw a regular fortnightly or monthly income stream and draw capital to meet a range of needs.
What is the minimum and maximum loan size considered?
The minimum loan size is $50,000, the maximum is $2,000,000.
How much can a client borrow?
The LVR is based on your client’s age. The maximum LVR is 15% at 60 years old and 45% at 90+ years old. The LVR increases by 1% for each year – e.g. at 65 the LVR is 20%.
The maximum LVR is set at the youngest applicant or approved occupant.
The LVR is applied to the valuation of the property to determine maximum loan facility size. A higher LVR (+ 5%) may be available for non-discretionary purposes, such as refinancing a home loan.
What type of properties will you consider as security?
Owner occupied residential property, including houses, apartments and units located on less than five hectares. Secondary properties can also be considered.
How long does a loan take from application to settlement?
The average period is 4 weeks, and less for clients who use our digital journey. However, there may be complex situations where the process takes longer. Refinancing a home loan can often take longer because it’s subject to the outgoing lender confirming settlement date.
Can you assist clients who own their properties through a company or trust?
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.
Can you assist clients who live in a retirement village?
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.
Do clients require financial advice?
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.
Can clients use a reverse mortgage to purchase a property?
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.
Can a Reverse Mortgage be applied for under an Enduring Power of Attorney (EPOA)?
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.
Are there any impacts on the Age Pension?
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.
Do clients require legal advice and at what point in the process?
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.
Can clients pay interest or pay down the loan if they wish to do so?
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.
Can a reverse mortgage be taken out on a commercial property?
In the situation where a property is zoned purely commercial, it is not possible.
*Disclaimer: Comparison rate based on a secured loan of $150,000 over a 25 year term. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates.