A specialist lender has “overhauled” its offering to be able to better meet the needs of senior Australians during the COVID pandemic.
Retirement funding provider Household Capital has revamped both its product features and application processes to provide accelerated access to one’s home equity.
The group yesterday announced the launch of its Home Income, a regular drawdown on home equity, with the option of a rapid access $20,000 Top Up home equity offer to assist retirees hit hard by the recent economic downturn.
“We know self-funded retirees are doing it tough and facing reduced incomes due to shrinking super balances and investments,” said CEO Josh Funder.
“The government stimulus package focused on working Australians and while the banks have provided interest repayment holidays, none of that has helped retired Australians get through the crisis.”
Household Capital will fast track applications for both Home Income and the $20,000 Top Up, aiming to have the funds available within two weeks. Regular interest repayments are not required, and applicants can pay back the money at any time without financial penalty.
“We don’t want people to have to wait – they need that money now,” said Funder.
“Smaller loans like these are not profitable to originate in a business sense, but we view it as a service to make sure Australian retirees have access to their savings when they really need them.”
Home equity can be an important source of retirement funding for clients when other types of income are diminished as they are now, according to the lender.
“We have experienced a surge in inquiries from advisers in the last couple of months; self-funded retiree clients need an alternative source of income,” Funder said.
“For retired Australians, their homes can be both the best place to live and the best way to fund their retirement.”
