Security for the loan
Your security for the Pension Loans Scheme loan is the market value of the Australian property you offer, less any existing mortgages or loans.
You can choose the amount of the value of the property you’ll use as security for your loan. You can also offer more than one property to increase how much you can borrow.
If you choose to exclude a portion of the security amount offered, it’ll reduce the maximum loan you can get.
You can make a request to change the excluded amount at any time. You need to use the Pension Loans Scheme variation form (SA497). If you’re a member of a couple, your partner must also sign the form even if they don’t own the property.
You need to pay some costs when you set up the loan. But there’s no cost to you if either of the following occurs:
- a licensed valuer needs to assess the property
- we need to re-assess the value at any time.
You can only use real estate in Australia as security for your Pension Loans Scheme loan.
You’ll be responsible for some of the costs involved with managing your Pension Loans Scheme loan.
Page last updated: 30 October 2021
This information was printed 7 December 2021 from https://www.servicesaustralia.gov.au/individuals/services/centrelink/pension-loans-scheme/how-much-you-can-get/maximum-loan-amount/security-loan. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.