Pension Loans Scheme payment rates
You can nominate to receive a payment each fortnight up to the maximum amount of Age Pension (including supplements and Rent Assistance). If your entitlement is less than the full amount of Age Pension, you can top up your fortnightly payments with a nominated amount up to the maximum amount of pension.
The total amount of loan you can receive depends on the equity you have in the property you offer as security, the equity you wish to keep in the property, and your age when the loan is granted.
The loan payments you receive are not subject to income tax.
Interest on the loan
Compound interest will be charged on the balance of the loan and calculated on a fortnightly basis. The interest charged increases the amount to be repaid.
Security for the loan
Your loan must be secured by Australian real estate. Any Australian real estate, including your principal home, may be used as security.
The scheme is secured by registering a charge with the Land Titles Office on the title deed of the property that you offer as security. You will have to pay any costs associated with this charge.
The real estate you offer as security for your loan must be valued independently by the Australian Valuations Office. This is done at no cost to you.
If you have more than one property, you may wish to exclude all but one from the assessment for a loan.
Asset test hardship
Making a claim under the Pension Loans Scheme does not stop you making a claim under the assets-test hardship provisions. You will, however, be able to be paid under only one of these provisions.
Your Pension Loans Scheme payment is reviewed regularly.