1300 622 100

Open: 9am - 5pm (AEDST)

Reverse Mortgage Interest Rates & Fees

Calculate Equity

Home > Interest Rates

Tax
Free
Funds

No Regular
Repayments
Required

Lowest
Available
Rate

Award
Winning
Company

Lowest Available Rate

4.95%

variable rate

4.98%

Comparison Rate*

Household Loan Fees and Charges

Description	Fee
Establishment Fee (includes valuation and conveyancing)	$950 flat fee
Special attendance fee (e.g., variation or substitution of security, discharge of mortgage)	$250 per attendance plus third-party fees
Fee for provision of paper copies of documents	$25 per request
Drawdown fees	Nil
Regular service fees (monthly, annual)	Nil
Early repayment fee	Nil

Calculate Your Home Equity

Learn how accessing your home equity could help you consolidate debts or increase your income.

Frequently Asked Questions

What is the interest rate and fees?

Interest Rate
The interest rate on a Household Loan is 4.95%p.a. (4.98%p.a. comparison rate*), which is the lowest available rate for a reverse mortgage or equity release product.

Establishment Fee
Household Capital charges an Establishment Flat Fee (including valuation and conveyancing) of $950.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Are reverse mortgage interest rates fixed or variable?

Reverse mortgages are only available with variable rates; the main benefit of this is that you have flexible repayment options. A Household Loan may be repaid, in part or full, at any time without penalty.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Why are reverse mortgage interest rates higher than standard mortgages?

Reverse mortgage interest rates are generally higher than a standard mortgage because there is no obligation for borrowers to make repayments until the end of the loan.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Why is the mortgage interest rate important?

The lower the reverse mortgage interest rate on your loan, the more of your home equity you retain and can access to fund your long-term retirement needs. It’s that simple.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

Household Loan Interest Calculation

Accessing the savings in your home using a Household Loan will reduce the amount of equity you have in your home over time. As with all loans, interest is charged on the funds you receive.

Whether you receive regular drawdowns or a lump sum payment, interest is charged on the total amount drawn from your loan. Interest is calculated daily but only compounded (added to the loan balance) monthly.

Most loans require monthly minimum payments to repay the loan balance and associated interest charges; a Household Loan defers loan and interest repayment to the loan's maturity date.

What is Compound Interest?

While no regular repayments are required, interest and any fees added to the loan balance will compound over time.

Compound interest means that you pay interest not only on the amount you have borrowed but also on the interest (and any fees) charged. Or, in other words, you pay interest on the interest for the duration of your loan.

Over time, the amount you owe will increase, and the longer you have the loan, the more the interest compounds and the larger the amount you have to repay.

Household Capital also offers an 'interest only' facility, where you can make regular payments so that at the end of the term, only the principal amount you borrow is repayable.

The case study illustrates the impact of compounding interest on a total loan. However, as shown, a modest appreciation in the value of the home can help to offset the effect of compounding interest over time.

Why a Household Loan?

HHC Icon - _TOP UP

Top up

Increase retirement income or set aside a contingency fund

HHC Icon - _REFINANCE

Refinance

Refinance a mortgage or consolidate debts

HHC Icon - _LIVE

Live

Fund home repairs, renovations, or expenses

HHC Icon - _CARE

Care

Cover medical, dental, in home or aged care

HHC Icon - _GIVE

Give

Gift family with a home deposit or education

How Our Customers Rate Us

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.

More Interest Rate Articles

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.

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.