Boost in support for older Australians to access Government loan

The Pension Loans Scheme is being renamed to the Home Equity Access Scheme, as announced recently by the Minister for Social Services, Anne Ruston.

The interest rate for the scheme is also being reduced to provide a boost in support for older Australians, including those in the veteran community.

The interest rate reduction from 4.50 per cent to 3.95 per cent per annum is great news for those considering accessing the scheme, lowering borrowing costs and allowing them to use the scheme for a longer amount of time.

The newly named Home Equity Access Scheme supports older Australians who are over the Age Pension age to access a voluntary non-taxable fortnightly loan from the Government up to a maximum value of 150 per cent of the rate of the Age Pension. The scheme allows participants to use their home as equity in order to access a loan.

To be eligible for the Home Equity Access Scheme, retirees must have reached Age Pension age, own real estate in Australia and meet residency and certain other requirements, but do not need to be receiving a pension payment.

For more information on the scheme, visit dva.gov.au/financial-support/income-support/support-when-you-cannot-work/pensions/pension-loans-scheme