Do you qualify for a household loan?

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It’s a worrying time for retirees. You’re isolated from family and friends, worried about their health and yours. The last thing you need is the added burden of financial worries; for some, however, making ends meet is a challenge.

What is a Household Loan?
Household Capital’s Household Loan is a type of reverse mortgage that’s been designed to work within Australia’s retirement system and focuses on improving your long term retirement funding. It can help you access the wealth accumulated in your home to enhance your lifestyle and wellbeing in retirement, without needing to downsize.

Am I eligible for a Household Loan?
Eligibility criteria include:

Your age
The youngest person on your home’s title must be aged 60+ – Household Capital is unable to lend to people under 60 years of age.

Where you live
Household Loans are available for homes and most apartments in metropolitan districts and a large number of regional areas, although some regional postcodes are excluded.

Existing mortgages
Some Household Capital customers have had an existing mortgage or reverse mortgage.

It is possible to refinance an existing mortgage depending on how much you still owe. If the existing mortgage is larger than the prescribed Loan to Value ratio (LVR) for a Household Loan, Household Capital will be unable to refinance it.

Where a mortgage (or reverse mortgage) is refinanced, the existing loan is discharged, and Household Capital takes a first mortgage over your property.

Household Capital has refinanced a significant number of reverse mortgages from several providers. Our interest rate is lower than those available on other reverse mortgages, which makes our Household Loan an attractive alternative.

Can I borrow against a unit in a retirement village?
We’re often asked this question. It is possible in some cases, so long as the following conditions are met:

  • Firstly, the borrower must hold the title to the property (including strata title)
  • Secondly, any management agreement or other agreements cannot place restrictions or requirements on the seller with regard to approval of sale, the sale agent used, unilaterally applied fees, costs, sales commissions or other forms of limitation or cost.


How much can I borrow?
The amount you can borrow is dependent on the LVR. For a Household Loan, the calculation takes two factors into account – the age of the youngest borrower and the value of your property.

The percentage of equity you can access is regulated by the Australian Securities and Investments Commission (ASIC). Household Capital’s LVR for a house starts at 15 per cent for those aged 60 and increases one per cent per year thereafter.















A Household Loan can provide a regular income stream, a lump sum payment or both! Household Capital provides flexibility and choice so you can use your money in a way that best enhances your long term retirement funding.

If you would like to explore how a Household Loan could improve your retirement lifestyle, please call Household Capital on 1300 622 100 or check out the online calculator to see how they can 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.

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Written by Josh Funder


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