Do You Need A Top Up?
If there’s one thing that 2020 has taught us, it’s that life does not always go to plan. Although it’s presented its challenges, 2020 has also reminded us of the importance of a place called home.
Australians prefer to stay in their own home throughout retirement – and why not? Your family home has been the centre of your life for years and most retirees are looking forward to many more good years at home. Recent events have also seen our homes become our refuge.
It’s been a time of financial hardship for some retirees, many of whom have been unable to access government support. That’s why we’ve released our $20K Top Up, accelarated access to a $20,000 Household Loan.
How Much Home Equity Can You Borrow?
Whether you need to consolidate debts, increase income or peace of mind see how a Household Loan can help you.
Frequently asked questions
Am I eligible for a $20K Top Up?
You might be eligible for a $20K Top Up if: - You are aged 60+ - You live in an eligible postcode - Your home value is at least $400,000 If you meet these criteria, apply online today and you could have your Top Up in as soon as two weeks.
When do I have to repay a $20K Top Up?
Regular interest repayments are not required. However, you have the flexibility to pay interest or repay your loan at any time without financial penalty. As with a standard Household Loan, you need to repay the loan when you sell or leave your home.
How quickly can I get a $20K Top Up?
The $20K Top Up has been designed to provide you with accelerated access to your Household Capital. If you complete the online application, it could be available to you within a fortnight. Check eligibility
How do I get flexible access to capital as a retiree?
Designed to give you flexible access to your Household Capital™, you might use a $20K Top Up to pay your rates or body corporate fees, for general living expenses or to help kids or grandkids who have lost jobs in the pandemic. You might choose to put it aside for those unexpected expenses.
The $20K Top Up has been designed to provide accelerated access to your Household Capital. If eligible, your $20,000 payment could be made within two weeks (online applications only).
Regular interest repayments are not required. However, you have the flexibility to pay back your loan at any time without financial penalty.
Please note: your home must be valued at $400,000 or more for this particular offer.
How does interest work on a Household Loan? Accessing the savings in your home using a refinance Household Loan will reduce the amount of equity you have in your home over time.
Because regular repayments are not required, the interest added to the loan balance compounds over time. This means you pay interest on your interest. Over time, the amount you owe the lender will increase. The longer the term of your reverse mortgage, the more interest compounds.
Alternatively, Household Capital offers an ‘interest only’ facility, where you can make regular payments so that at the end of the term, only the amount you borrow is repayable.
See more on interest rates and fees.
*The Comparison Rate is based on a loan of $150,000 for 25 years. WARNING: this comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Customer Stories: Covering The Basics
Lynette is 73 years old and lives in South East Queensland. Her husband passed away some time ago; she has three adult children and she lives alone. Her primary income is from the government’s Age Pension.
She has a small mortgage from a non-bank lender that she’s has managed meticulously over the years, paying more than required when she could and negotiating repayment ‘breaks’ when she needed to.
Lynette was able to use the $20k Top Up to refinance that small mortgage, removing the obligation to make repayments and increasing her fortnightly income.
She also established a contingency fund to give her confidence she could meet unexpected expenses and avoid having to use high-interest credit cards.
Note: customer names and images have been changed to protect their privacy.