“To have that equity and keep the same house is just a wonderful way to be able to progress into our retirement.” – Dennis, 75, New South Wales
Dennis is 75 years old and, along with his partner, lives in Sydney’s inner west. The home he originally bought for $40,000 is now valued at a figure seven to eight times greater than that purchase price.
Dennis and his partner had some superannuation savings and were still paying a mortgage, which depleting their retirement income. The couple started considering their options: they could either get finance to pay their mortgage in full, or simply sell the property. These solutions raised more issues – they did not want to leave their home, nor did they want the financial stress of meeting ongoing mortgage repayments.
Dennis contacted Household Capital and spoke to one of our experienced retirement specialists, who visited them at their home to take them through the process of using home equity to improve retirement funding. By using their home equity – what we like to call their Household CapitalTM – to unlock their home equity, the couple refinanced their mortgage and freed up their retirement income to maintain the lifestyle they worked hard to achieve. They also established a contingency fund that allows them to draw money from their Household CapitalTM as required.
Some customers like to make regular repayments on their Household Loan, which can be done at any time without penalty. However, there’s no requirement to make repayments. It’s part of our flexible approach to retirement funding.
“Once we got the mortgage done, we were encouraged by Household Capital not to take it all out at one go and so we're building equity,” Dennis said. By not drawing all the funds as one lump sum, our customers can retain equity in their home over the longer-term, as interest is not charged until those funds are drawn down.
“I made sure that we would be allowed to have a second bite or a third bite of the cherry as the value of our house went up.”
With personalised service and support, Dennis and his wife are able to relax and confidently enjoy their retirement, with the knowledge they had things covered, now and in the future.