For most of us, our home is our castle. For many retired Australians, home is a safe harbor – something that has become increasingly apparent over the past two years.

The family home has also proven to be an amazing store of wealth, particularly for those who have owned their home for a decade or more. For many retirees, the value accumulated in their home is significantly higher than their retirement savings.

In fact, based on taxation and census data, the median household in Australia, at retirement, has less than $200,000 in superannuation and more than $750,000 in home equity.
This is one of the reasons the federal government has revamped its Home Equity Access Scheme (formerly the Pension Loans Scheme), a welcome move in funding an ageing population.

It’s important to note the availability of different products, which will suit different people. While both Centrelink’s Home Equity Access Scheme and commercial solutions such as Household Capital’s Household Loan allow retirees to access home equity, they are significantly different products and provide different benefits.  

The Centrelink Home Equity Access Scheme is where the government puts a form of reverse mortgage on your home – it meets the needs of customers who require a modest top up above the level of the Age Pension. 

Many other retirees want flexible access to income and capital, now and in the future, expect the funds to be in their account within days and require personalised service. This could be a lump sum, a monthly, quarterly or annual income stream, a cash reserve or a combination of all three. For those retirees, a commercial solution such as a Household Loan could meet their needs.

Household Capital’s approach aims to provide you with the best of both worlds – to continue living in your family home with the confidence to enjoy the retirement lifestyle you deserve.

Their Household Loan can improve your retirement lifestyle by enhancing retirement income, providing access to capital and improving retirement housing. Importantly, Household Capital provides you with choice and flexibility to use your home equity in a variety of ways, including:

• Providing a regular income stream through our regular drawdown facility
• Paying off an existing mortgage or other debt to free up your cashflow
• Undertaking home modifications or renovations to make your home safe and comfortable for retirement
• Setting up a contingency fund for those unexpected expenses, which can be drawn on as you need it
• Paying large medical expenses
• Being the ‘bank of mum and dad’ to help your children and grandchildren when they need it most, with a first home deposit or education expenses
• Paying for in-home or residential aged care.

Household Capital want you to live well at home in retirement and it’s their mission to facilitate that. After all, your home can be the best place to live and the right way to fund your retirement.

To learn more about using your home equity to transform your retirement, you can:

• Call Household Capital on 1300 699 624 
• Read the free home equity e-guide
• Check out their online calculator to see how they could help you.

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434, Australian Credit Licence 391876.