Recently, more matured and elderly people have been seeking this funding to access the untapped equity in their home to retain their desired living standards and remain in their family home. Many do not have sufficient funds in their super or savings for ongoing living costs during retirement.
Two options are available.
- Home Equity Access Scheme
This is a Federal Government scheme for anyone who has reached Pension Age (67 or older) to take out a “reverse mortgage” from the government where the balance of the loan is repaid when the property is sold. The property can be either owner-occupied property or an investment property which is used as security.
• Interest is compounded each fortnight on the loan balance.
• Current Interest rate as of June 2026 is 3.95% per annum
• You or your partner are of Pension age (67) or older.
• Ability to draw down an income stream up to one and a half times the maximum Age Pension plus supplements. An initial lump sum payment is applicable (depending on your circumstances). Visit servicesaustralia.gov.au for more details - Seniors Reverse Mortgage
Borrowing is calculated as a percentage of the applicant’s age to the Value of the property as security.
• Minimum age is 60.
• Borrowing capacity is dependent on age and has an ability to increase annually on birthday.
• Funds can be a lump sum with monthly advances.
• Ability to meet Aged Care entry costs.
• No need to be in receipt of pension incomes.
Contact Paul today for more information.