There’s been a 300 per cent surge in people using the government Home Equity Access Scheme, figures obtained by 9News reveal.
Since 2020, the number of people using the government Home Equity Access Scheme has skyrocketed by 329 per cent.
As of June this year, 13,400 people have signed up.
National Seniors Australia CEO Chris Grice said most pensioners experience a gap in their payments and the cost of living.
“Paying health insurance..energy costs, fuel and groceries… a single pensioner is short about $10,000 per annum.”
To be eligible for the scheme, you need to be 67 years or older, an Australian citizen, own your home and you can be a pensioner or a self-funded retiree.
The scheme lets seniors access their home’s equity with a government loan, which boosts their retirement income.
Once approved, seniors can receive a fortnightly payment or lump sum payment, bringing their total payment to 150 per cent of the maximum aged pension.
For a couple, that could total a payment of $2587 a fortnight.
A single pensioner could receive up to $1716.
How much a person can borrow depends on their age and the home’s equity.
The annual interest rate of 3.95 per cent compounds each fortnight on the loan balance until it is repaid in full.
The debt can be repaid at any time but is usually cleared upon the sale of the property or estate.
There is also a protection in the contract which ensures applicants never owe more than the home’s value.
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