Household Capital launches drawdown loan facility

household-capital/Joshua-Funder/

27 August 2019
| By Chris Dastoor |
image
image
expand image

Specialist retirement lender Household Capital has launched Household Transfer, a new drawdown loan facility to provide retirees with an income stream and a lump sum payment using the equity in their home.

Household Transfer could supplement retirees’ super and Aged Pension with the benefit of both, which Centrelink’s Pension Loan Scheme (PLS) is unable to do, with the option to receive income paid either fortnightly or monthly.

The drawdown facility was developed in response to demand from financial advisers who wanted clients to have a regular income stream in addition to receiving a lump sum payment.

Australia’s median household superannuation balance at retirement is $200,000, while the median home value at retirement is $700,000.

Joshua Funder, Household Capital chief executive, said the firm was committed to providing funding solutions for retirees who find their savings locked up in property assets.

“We find most people looking for a regular drawdown also take a lump sum for a specific purpose, such as renovations, a new car, medical expenses or to provide financial support to children and other family members,” Funder said.

“There are various expenses which can arise in retirement so we have developed a flexible funding solution which can be tailored for these individual requirements whatever they may be.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

1 month 3 weeks ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

2 months ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

4 months ago

Entireti has unveiled the new name for the AMP financial advice businesses that it acquired last year....

4 weeks ago

A Sydney financial adviser has been permanently banned from providing any financial services, with the regulator deriding his “lack of integrity, trustworthiness and prof...

2 weeks 5 days ago

Minister for Financial Services, Stephen Jones, has provided further information about the second tranche of the Delivering Better Financial Outcomes (DBFO) reforms....

1 week 4 days ago

TOP PERFORMING FUNDS