Australia’s peak consumer organisation for older Australians says seniors should be able to access the equity in their home as a way of funding additional care, but at a fair interest rate.
Chief Advocate Ian Henschke says the government’s Pension Loans Scheme (PLS)
allows older Australians to access their home equity but the borrowing rate of
4.5% is too high.
“Our scheme would
have a much lower rate. And since the equity can only be used to fund home care,
it would not be a competitor to current commercial reverse mortgage schemes,”
Mr Henschke said.
also wants to see more suitable housing projects with simple lease agreements.