humanservices.gov.au Pension Loans Scheme Australia : Department of Human Services

Organization : Department of Human Services
Facility : Pension Loans Scheme
Country : Australia
Website : https://www.humanservices.gov.au/individuals/services/centrelink/pension-loans-scheme

Human Services Pension Loans Scheme

A voluntary reverse equity mortgage that offers older Australians an income stream to supplement their retirement income.

Related : Department of Human Service Pension Bonus Scheme Australia : www.statusin.org/25916.html

Who Can Get it?

You may be able to apply for a payment under the Pension Loans Scheme if you meet certain requirements.
You may be able to apply if you :
** or your partner are of age pension age
** own real estate in Australia that you use as security for the loan
** or your partner receives a rate of payment that is less than the maximum amount or nothing due to either the income or assets test but not both
** you meet Age Pension residence rules

Costs & Interest Rates

You must pay any costs associated with setting up a loan under the Pension Loans Scheme. Costs can include legal fees. We’ll send you a letter once the loan has commenced.

This letter will tell you the costs you must pay. You can pay them straight away or we can add them to your outstanding loan balance. If we add them to the loan balance they will attract interest charges.

Interest Rate :
We currently charge 5.25% compound interest on the outstanding loan balance. We add interest to the outstanding loan balance each fortnight until you repay the loan fully. The longer you take to repay the loan, the more interest you pay.

The outstanding loan balance is :
** the amount you borrow from us, plus
** interest, plus
** any costs, minus
** any repayments you made
We regularly review your loan payments.

Repay the Loan

You can repay the loan you get under the Pension Loans Scheme in part or full at any time. If you want to sell the property used as security for the loan, you need to contact us first.

You can either transfer the loan to another property including your new home or you can repay the loan on the date of settlement. If there is an outstanding loan after your death, your estate or in some cases your surviving partner’s estate can make repayments.

How Much you Get

The amount you get each fortnight can be up to the maximum rate of income support payment you qualify for.
The total loan you can get depends on the :
** equity you have in the property you offer as security
** equity you want to keep in your property, and
** age of you or your partner, whoever is younger

Security of the Loan

You can get a loan up to the maximum rate of income support payment you qualify for, under the Pension Loans Scheme.
** You must use real estate in Australia as security for your loan.
** It can be the home you live in or an investment property.

** You may also use real estate owned by a private company or trust as security for the loan, if you’re a controller of that company or trust.
** If you have more than one property, you can choose which to use as security for the loan.

** We’ll register a charge with the Land Titles Office on the title deed of the property you’re using as security. You’ll have to pay any costs associated with registering and removing this charge.

** A licensed valuer will value the property. There will be no cost to you.
** Don’t forget that the loan payment reduces your equity in the real estate used as loan security.

Claiming

Check if you’re eligible before you start your claim.
Then :
** find out what you need
** fill in your claim form
** meet with a Financial Information Service officer
** submit your claim form and the other documents we ask for
** we will assess your claim and let you know the outcome

Author : Regina