Are you a senior looking to boost your retirement income? Well, you’re not alone! According to figures obtained by 9News, there has been a whopping 300 per cent surge in people utilizing the government Home Equity Access Scheme since 2020. This means more seniors are accessing the equity in their homes to supplement their finances.
To be eligible for the scheme, you need to be 67 years or older, an Australian citizen, own your home, and be a pensioner or a self-funded retiree. The scheme allows seniors to access their home’s equity with a government loan, providing them with a boost in their retirement income. Seniors can receive a fortnightly or lump sum payment, bringing their total payment to 150 per cent of the maximum aged pension.
Seniors can borrow based on their age and home equity, with an annual interest rate of 3.95 per cent. The debt can be repaid at any time but is typically cleared when the property is sold or in the estate settlement. Rest assured, there’s protection in place to ensure applicants never owe more than their home’s value.