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How to fund staying in your home for as long as you wish

Most seniors want to age in their own place. This makes it possible.

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  • Finance
  • Read Time: 5 mins

For many of us, life revolves around the family home. It’s our anchor and our refuge; a comfortable constant in an ever-changing world. It’s where memories have been made and milestones celebrated.

Too often, however, seniors are forced to leave their homes and move into aged-care accommodation. In many cases, it simply doesn’t have to be that way.

Keeping older people in their own homes is good for the individuals – for their physical and mental wellbeing – and good for the nation’s economy.

The taskforce set up in the wake of the Royal Commission into Age Care Quality and Safety recently listed as its number one principle that “the system should enable and encourage participants to remain in their home for as long as they wish and can do so”.

Many surveys, including those conducted by National Seniors Australia, have shown that it is the clear preference of seniors to stay at home if it’s possible for them to.

Reasons for this are many and varied, but often include:

  • They don’t want to lose their independence.
  • They are emotionally tied to their homes.
  • They fear the unknown.
  • They want to stay in a familiar and comfortable environment.
  • They want to stay close to family and community.
  • They find moving physically stressful.
  • They may have to reduce their belongings, which can be stressful and emotionally challenging.

To make remaining at home possible, seniors often need assistance and funds to maintain the retirement lifestyle they want.

Practical assistance can come in the form of the government’s Home Care Package (HCP), which offers services such as help with household tasks and personal care, equipment, minor home modifications and clinical care.

But government assistance through the HCP, while valuable to recipients, is not universally available, can take some time to access, and only goes so far.

For many retired Australians, the extra money required to fund a more comfortable retirement could come from unlocking the wealth in the family home.

There are two ways to do this, via the government’s Home Equity Access Scheme (HEAS) or through a reverse mortgage product such as Household Capital’s Household Loan.

The HEAS is a loan issued by the Australian Government that allows eligible seniors to boost their retirement income using their home equity. For those with modest needs, such a small amount of extra income or a lump sum payment to cover minor expenses, HEAS is a great option.

A Household Loan offers more flexibility and is designed for those who need a higher level of income or capital for more substantial projects or expenses.

Unlocking the wealth in your home can enable you to live the retirement lifestyle you deserve, without having to be concerned about every dollar you spend – important at a time when the cost of living is spiralling.

Using a Household Loan, your home equity can be drawn as a regular income stream, a lump sum, or a mix of capital and income. Access to capital is important; you may need a new car, want 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.

Download our free e-guide 6 Ways to Use Your Home Equity.

Or use our Home Equity Calculator to calculate the equity in your home.

Prefer to speak to a real person? 

Speak with one of Household Capital’s retirement specialists for a 15-minute no-obligation call on 1300 699 624.

Or book a time that suits you to ask questions and discuss your needs. Schedule a call.

Disclaimer: 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.

NSA Disclaimer: This content includes sponsored advertising which helps fund our important advocacy work. Please note that the information provided and opinions expressed in this advertising material are solely those of the advertiser. We encourage you to carefully evaluate and consider any advertised offering before making a purchase. Any transactions or interactions between you and the advertiser are solely between you and the advertiser.

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