subscribe to our newsletter

Household Capital launches new drawdown loan facility

Retirement lender Household Capital has announced the launch of a new drawdown loan facility that provides retirees with access to additional funds. 

The specialist lender’s new drawdown facility, unveiled on Monday (26 August), is aimed at providing retired Australians with access to lump sum payments using equity in their home, in addition to regular income. 

Household Capital noted that the Pension Loan Scheme, the scope of which was expanded in the 2018 federal budget to make it accessible to a greater number of retirees, doesn’t provide lump sum payments. 

The lender said it developed the new drawdown facility in response to financial advisers looking to help their clients obtain lump sum payments, in addition to having regular income streams. 

Household Capital CEO Joshua Funder commented: “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.


“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.”

The facility is available to customers of Household Transfer, which was launched in March this year to allow retirees to access additional retirement funds by using a low-interest loan to transfer a portion of the value of their homes into their superannuation fund or investment account. 

“An estimated 439,000 Australians intend to retire in the next eight months despite average savings being well below the recommended level. This is fuelling interest for household equity release products like Household Capital’s Household Transfer,” Household Capital said. 

“Australia’s median household superannuation balance at retirement is approximately $200,000, yet the median value of home ownership at retirement is $700,000.”

ME Bank earlier this year provided a $100-million wholesale debt facility to Household Capital, in addition to making a strategic equity investment in the lender.


The retirement lender currently operates on a fee-for-service model, meaning that it does not pay any commissions to brokers. 

“Household Capital receives an establishment fee to cover the costs of putting the loan in place, and interest is charged on the capital drawn from a person’s home. The final amount is paid when the person leaves the home and the house is sold,” the lender previously explained. 

[Related: Retirement lender passes on full RBA rate cut]

Household Capital launches new drawdown loan facility
Old person

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.


If you have any news, ideas or enquiries for Mortgage Business - please contact This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The value of new home loans pivoted upwards after three months of freefall, according to the latest ABS data. ...

Heightened migration into Queensland has resulted in shrinking housing affordability, according to a state government department. ...

A real estate network's general manager has forecast South Australia house prices will grow by 15 per cent in 2022, as open borders raise de...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

Do you think APRA's bank buffer changes will see more borrowers use non-banks?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.