By Maria Bekiaris,
, September 2010
If you’re an asset-rich but cash-poor retiree in need of some extra cash it’s worth looking into the federal government’s pension loans scheme.
You may be eligible if you or your partner are of age pension age, you receive or could receive some pension under the income or assets test, and have real estate assets in Australia that can be offered as security for the loan.
It is not available if you already receive the maximum age pension. The total amount of loan you can receive depends on the value of the property you offer as security, the equity you wish to keep in the property, and your age at the time the loan is granted.
The loan will be paid fortnightly at a maximum amount of the age pension – currently $644 a fortnight for singles or $485.60 each if you’re part of a couple. This does not include the Pension Supplement.
You will have to pay interest on the loan. The loan can be repaid in part or full at any time – it can even be paid from your estate after your death.
For more see www.centrelink.gov.au or call 132 300.
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