In an era where the cost of living continues to rise, Australian retirees are facing unique financial challenges. Many find themselves in a situation where the bulk of their wealth is tied up in their family homes, leaving them with limited options to fund their retirement comfortably.

That’s where Household Capital steps in.

As a specialist retirement funding provider, Household Capital offers a solution that empowers retirees to make the most of their home’s value.

Through a helpful and enlightening Q&A session with Household Capital, we explore how their innovative approach allows retirees aged 60 and above to access their home wealth responsibly, providing flexible options such as regular income streams, lump sum payments, and even assistance for those still paying off mortgages!

Whether you’re looking to beat the cost-of-living crisis, help your children enter the property market, or simply secure a more comfortable retirement, Household Capital offers a pathway to a brighter financial future. Here’s how:

Q: What does Household Capital do?

A: Household Capital is a specialist retirement funding provider that provides responsible long-term access to your home wealth. Our 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.

Q: How does Household Capital help retired Australians?

A: If you’re like most Australian retirees, the majority of your wealth is probably tied up in your family home. This wealth is a valuable resource that could be used to improve your retirement funding and enhance your retirement lifestyle. Our Household Loan helps Australian homeowners aged 60 plus to unlock that wealth and put you in control of your retirement. Your home wealth can be drawn as a regular income, a lump sum payment to renovate your home, buy a new car or cover medical expenses, or both! Importantly, it provides flexibility and choice, so you can look to the future with confidence.

Q: How can Household Capital help me beat the cost-of-living crisis?

A: Many Australians are grappling with the rising cost of living. Food, medical costs, insurance premiums, petrol prices – it seems never ending. How do retired Australians manage this on a fixed income? In many cases, they don’t. Some give up doing things they love – other forgo necessities. Unlocking the wealth in your home can provide a regular income to supplement that received from your superannuation or government pension. You don’t have to go without. You can enjoy the lifestyle you deserve.

Q: I’m over 60 and still paying a mortgage – can you help me?

A: You may be one of the millions of Australians aged over 60 still paying off their home loan. Those principal and interest repayments can really stress budgets, especially as the interest rate for ‘old loans’ may be much higher than current rates for younger borrowers.
For some over 60s, it means they can’t retire when they want to. For others, it’s having to find that monthly repayment from a fixed income that’s already been stretched by increasing rates and inflation. There is a better way. Many of our customers use a Household Loan to refinance their bank loan. Because a Household Loan does not require regular repayments, your retirement income is freed up. Notably, there is no risk of foreclosure if you miss repayments – because regular repayments are not required. You can stay in your home as long as you want with guaranteed lifetime occupancy and retain 100 percent ownership, meaning you benefit fully from any growth in your home’s value.

Q: How can I help my kids get onto the property ladder?

A: Did you know the ‘bank of mum and dad’ is consistently ranked among Australia’s top ten lenders? Typically, funds are drawn from retirement savings, which can have a detrimental impact on the ‘bank’ over the longer term. If your retirement funding needs are in hand, you can use your home wealth to contribute to a first home buyers deposit or help children with mortgage expenses. This enables you to help children and grandchildren when they need it most and use your home wealth to help the next generation build theirs.

Q: How much home wealth could I unlock?

A: The amount of home wealth you could unlock is dependent on the Loan to Value ratio (LVR). The calculation takes multiple factors into account including the age of the youngest borrower and the value of your property. The LVR for a Household Loan starts at 20 percent of the agreed property value for those aged 60 and increases one percent per year thereafter.

To see how much home wealth you could unlock, check out Household Capital’s online calculator or call and speak to one of their Australian-based retirement specialists on 1300 734 720.

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 ACN 618 068 214, Australian Credit Licence 545906, is the Servicer for the credit provider Household Capital Services Pty Limited ACN 625 860 764

Image: Supplied.

This is a sponsored article produced in partnership with Household Capital.