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Household Loan
Refinance for 60+
Home Equity Wealth Release
Pension Loan Scheme
Home Reversion Schemes
Centrelink Reverse Mortgage - Home Equity Access Scheme
The Home Equity Access Scheme formerly known as the Pension Loan Scheme (PLS) is a federal government reverse mortgage scheme. It aims to provide support for eligible Australian home owners at pension age, even if they are not taking a pension, in the form of a fortnightly income stream by taking out a loan against the equity in their home. It is a reverse mortgage administered by the Department of Human Services and distributed by Centrelink.
The Pension Loan Scheme allows Australian retirees (including self funded retirees) to borrow up to 150% - or 1.5 times - the maximum Age Pension, paid fortnightly. The maximum income available - combined Age Pension and PLS income stream to 150% of the Age Pension rate per annum; this currently corresponds to:
- a maximum $36,121.80 per annum for singles
- a maximum $54,451.80 for couples.
How A Household Loan Differs From Centrelink’s
Home Equity Access Scheme
| Household Loan | Home Equity Access Scheme (Formerly Pension Loans Scheme) | |
|---|---|---|
| Age: | 60+ | Pension age (66 and 6 months or 67 years) |
| Eligibility: | Australian homeowners | Homeowner (does not have to be a pension recipient) |
| Interest rate: | 6.20% Variable 6.23%* Comparison | 3.95% |
| Loan amount: | $50,000-$1,000,000 + | Up to 150% of Age Pension per fortnight (maximum additional income per year - $36,121.80 for singles or $54,451.80 for couples) |
| Payments: | - Capital - Income stream - Mortgage refinance - Renovations - Aged care RADs & DAPs | - Income stream or a capped lump sum advance payment |
| Locations: | All metropolitan postcodes and some regional areas | Most areas |
| Maximum loan: | 20% of house value at age 65, then 1% each year | Income stream based on a fraction of 25% of house value each at age 65, then approximately 1.1% each year |
| Property valuation: | At establishment | Annual |
| Regulations & protections: | Responsible lending applies and subject to the National Credit Code (NCC) including its consumer protections. | Responsible lending does not apply and not subject to the National Consumer Credit Code or its consumer protections. Effective 01 Jan 22 Subject to the National Credit Code (NCC) but not including its broader consumer protections. |
| Service: | Personalised service by Household Capital team | Administered via Centrelink and subject to in-store or phone queues |
A Household Loan Provides Choice & Flexibility
You can utilise your Household Capital via one or a range of ways from super top-up to becoming the bank of mum and dad.
It's As Easy As 1, 2, 3!
CONFIRM ELIGIBILITY
Use our online calculator to see your accessible Household Capital.
PERSONAL CONSULTATION
Experience one-on-one personalised service with a retirement specialist.
APPLICATION
We guide you through every step of the application process.
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Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. ^Amounts spent will be added to your Household Loan and accrue interest like any other funds drawn via your Household Loan.