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C41/1996 CESSATION OF DVA HOME EQUITY CONVERSION SCHEME
DATE OF ISSUE: 1 JULY 1996
CESSATION OF DVA HOME EQUITY CONVERSION SCHEME
The purpose of this Departmental Instruction (DI) is to advise of the cessation of the Home Equity Conversion (HEC) loan scheme previously available to certain Department of Veterans' Affairs (DVA) pensioners.
2.As outlined in DI B64/93, from 1 December 1993 the Advance Bank of Australia commenced to operate the HEC scheme. The Scheme was underwritten by the Commonwealth and was designed to provide small loans to DVA and Department of Social Security (DSS) pensioner home owners.
Cessation of scheme
3.The contract between the Advance Bank and the Commonwealth for the Bank to operate the Scheme expired on 30 June 1996. As a consequence, from this date the Scheme is no longer available.
Evaluation of Scheme
4.DSS has employed the services of a consultant to evaluate the effectiveness and viability of the Scheme in order that an informed decision can be made as to the future of the Scheme.
Availability of other suitable financial arrangements
5.Whilst the HEC is no longer available, it may be that pensioners' small borrowing requirements are able to be met by other commercially available products or by a lump sum advance of pension (up to $500, available from 4 July 1996). Pensioners inquiring about such arrangements should be referred to the local VAFIS office for advice on such matters.
6.Any further queries in respect of this matter should be directed to Martin Dibb on telephone 06-2896751, fax. 06-2894854, LAN C-C-PAA-1.