Maximum loan amount

Once your Pension Loan Scheme (PLS) loan balance reaches your maximum loan amount, your payments will stop.

We base your maximum loan amount on your age and your security for the loan. If you have a partner and they’re younger than you, we’ll use their age instead.

The maximum loan amount generally increases each year as you or your partner get older. If your real estate’s value changes, this will also affect your maximum loan amount.

You need to tell us if the value of your real estate changes. If it increases, you can ask us to increase your maximum loan amount. If it decreases, we’ll need to lower your maximum loan amount.

Your loan payments will stop once your loan balance reaches your maximum loan amount. We continue to apply interest to the outstanding balance until you repay the loan in full.

To work out the maximum loan amount, we round the security value down to the nearest $10,000. Then we divide it by 10,000 and multiply that by the age component amount. The age component increases each year as you and your partner get older. You can choose a lower amount than the one we calculate. If you do this, your payments stop once your balance reaches that amount.

You can request to change the maximum loan amount at any time. This request must be in writing and you must sign it. If you’re part of a couple, your partner must sign the request even if they don’t own the property.

Page last updated: 5 July 2021