Get more from your money with up to 5.05% p.a. interest

with a National Seniors Term Deposit account

A safe way to unlock the wealth in your home

The Household Loan is a proven – and secure – way to boost your retirement income. 

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More about Household Capital

  • Finance
  • Read Time: 5 mins

Key Points

  • A Household Loan allows you to draw on a portion of your home equity to receive a monthly or fortnightly income stream
  • A Household Loan comes with a range of protections under the National Consumer Credit Protection Act (2012) (NCCP).
  • Learn more on how you can use the equity in your home in our free e-guide 

Seniors who invested in home ownership when they were young are now sitting on a valuable asset. 

Residential house prices across the capital cities in Australia increased by 23.7% from 2006 to December 2021. Despite the official interest rate rising from 0.1% to 4.10% in May 2023, house prices continue to rise across the country. (Source)

Many older Australians now find themselves in the position where they have all or most of their wealth locked up in the family home – it’s the old ‘asset rich, cash poor’ conundrum. 

 At the same time, they may find their income from the pension and/or super and other investments isn’t quite enough to do the things they want and need to do in retirement. 

 Downsizing may suit some people, but that often means moving away from the place you’ve called home for decades – where so many special memories were made – and away from the friendships you have cherished over the years, or the community where you feel safe and comfortable. 

 As an alternative to selling the home you love, Household Capital offers a solution that is helping retired Australians beat cost-of-living pressures by unlocking the wealth they have accumulated in their home. 

Protected by law

A Household Loan is a reverse mortgage and comes with a range of protections under the National Consumer Credit Protection Act (2012) (NCCP). As a result, reverse mortgages are now one of the most strictly regulated credit products in Australia, with clear consumer protections and market parameters at both the beginning and end of all loans.  

Firstly, you cannot lose your home; instead, you can remain living there as long as you wish. You continue to own your home and retain the title. Because you don’t need to make regular repayments there’s no default risk and you cannot be forcibly removed from your home. 

You do need to meet simple obligations: you need to remain living in your home, maintain it and pay the council rates and home insurance. 

Secondly, the "no negative equity guarantee" clause in the NCCP means you or your estate cannot owe more than your home is worth, regardless of what happens to the value of your property.

How it works

The Household Loan allows you to draw on a portion of your home equity to receive a monthly or fortnightly income stream. 

That way you can live the retirement lifestyle you deserve, without having to be concerned about every dollar you spend. 

Home equity can also be drawn as a lump sum, or a mix of capital and income. Access to capital is important, as you may need a new car, wish to renovate or repair your home, repay debt, or cover significant medical or dental expenses. 

By using your home equity, you don’t need to draw on your income-producing assets and risk reducing your future income. 


Retiree Lynn says she used her home equity to set up a contingency fund.

“I know all I have to do is make a phone call and I get money in my bank the next day,” she says. 

Suzanne, who needed an income stream to supplement the age pension for a comfortable retirement, says it allows her to “do whatever it is I want to do”. 

Ready to take the next step?

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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.

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