PENSION LOANS SCHEME
Did you know?
Centrelink offer a Pension Loans Scheme which effectively is a non-taxable reverse mortgage type loan (taking security of the recipient’s principal place of residence) at a competitive interest rate of 5.25% (compared to other reverse mortgage loan providers), via a top up of the pension to the top rate for those receiving only a part pension. Eg: A single part pensioner receiving a part pension of say $600 per fortnight could receive an extra payment of $316.30 per fortnight, bringing their total fortnightly pension up to the maximum single rate of $916.30 per fortnight.
The loan is not paid as a lump sum but in the form of extra income each payment period. This can be for a short time or an indefinite period. Pension recipients can either pay the outstanding balance back at any time using whatever resources they may have or from the sale of their home upon their downsize or demise.
Please call our Specialist Centrelink Adviser, Nicola Henley, today to discuss this further.