Australia
Most Australians who start researching reverse mortgages go straight to commercial lenders. Very few discover the Home Equity Access Scheme first — a government-administered option that in many cases is materially cheaper and worth comparing before approaching any commercial product.
The HEAS is not widely marketed because no lender profits from it. That is precisely why it deserves to be the first option you understand.
What the Home Equity Access Scheme Is
The Home Equity Access Scheme (HEAS), formerly called the Pension Loans Scheme, is a voluntary government loan administered by Services Australia — the same agency that administers Centrelink and the Age Pension.
HEAS allows eligible older Australians to access equity in their home as a regular fortnightly payment. The loan accrues interest on the outstanding balance. It is repaid when the property is sold, when the borrower passes away, or when they voluntarily repay it.
Unlike commercial reverse mortgages, the interest rate on HEAS is set by the government and is typically lower than commercial rates. There are no establishment fees and no ongoing account fees.
Eligibility criteria and thresholds are subject to change — confirm current rules and the current interest rate with Services Australia at servicesaustralia.gov.au before applying.
Who Is Eligible for HEAS
To access HEAS you must:
- Be of Age Pension age (currently 67 for most people born after 1 January 1957)
- Be eligible for the Age Pension, Disability Support Pension, or Carer Payment — even if you do not currently receive payments due to assets or income
- Own real estate in Australia that can be used as security for the loan
The critical point: you do not need to be receiving the Age Pension to use HEAS. Asset-rich retirees who are ineligible for pension payments because of their asset or income levels can still access the scheme — provided they would otherwise meet the pension criteria.
How HEAS Payments Work
HEAS provides fortnightly payments that supplement your existing pension income, or provide income if you do not currently receive a pension.
The maximum fortnightly payment is capped at 150% of the maximum Age Pension rate for your circumstances, minus any pension you already receive.
- Maximum Age Pension (single): approximately $1,149 per fortnight (confirm current rate with Services Australia)
- 150% cap: approximately $1,724 per fortnight
- If you already receive $850 per fortnight in pension: maximum additional HEAS payment is $874 per fortnight
You can receive less than the maximum, and you can change the payment amount with notice.
Talk to Key Choice Lending about your options.
Key Choice Lending has access to 72+ lenders and has supported Australian borrowers through more than $1 billion in transactions. Founder Matthew Clark is a two-time Amazon bestselling author and Better Business Award winner. Book a Strategy Session — no obligation, focused on your situation.
HEAS vs Commercial Reverse Mortgage: Key Differences
| Feature | HEAS | Commercial Reverse Mortgage |
|---|---|---|
| Provider | Government (Services Australia) | Private lender |
| Interest rate | Government-set, typically lower | Typically higher |
| Minimum age | Age Pension age (67) | 60 |
| Payment format | Fortnightly income stream only | Lump sum, income stream, or line of credit |
| Lump sum access | Not available | Available |
| Establishment fees | None | Typically $500–$1,000+ |
| No Negative Equity Guarantee | Yes | Yes (regulated lenders) |
Fees and rates vary by lender and are subject to change — confirm current HEAS rates at servicesaustralia.gov.au and commercial rates with your broker before comparing.
How HEAS Interacts With the Age Pension
HEAS payments are a loan, not income. They are not assessed as income under the income test.
However, as the loan balance grows, it reduces your net asset position — which can affect the Age Pension assets test. The property remains assessable at full market value, but the outstanding HEAS debt is offset against assets. Over time, as the loan balance grows, your assessable assets under the assets test may fall, potentially improving your pension entitlement.
This interaction is one reason the HEAS can be advantageous for retirees on a partial pension — the loan can improve Centrelink entitlements over time as the balance builds.
Tax treatment varies by individual circumstance — speak with your accountant before making any decisions based on tax considerations.
When HEAS May Not Be Enough
HEAS provides an income stream only — it does not provide lump sum access to equity. If you need a large single amount — to fund a Refundable Accommodation Deposit for aged care, pay for major home modifications, or make a significant purchase — HEAS cannot deliver this in the same way as a commercial lump sum product.
In those situations, a commercial reverse mortgage with lump sum access may be the appropriate tool. But even then, comparing the HEAS interest rate against commercial rates provides a useful benchmark for evaluating the cost of any commercial product you are offered.
The First Step Before Approaching Any Commercial Lender
Contact Services Australia to check your HEAS eligibility before approaching a commercial reverse mortgage provider. The process is straightforward and free.
If you are eligible, the interest rate comparison alone often makes HEAS the superior option for income supplementation. If you need lump sum access that HEAS cannot provide, you will at least have a benchmark rate against which to evaluate commercial products.
Starting with HEAS is not about ruling out commercial products — it is about making sure you understand the full range of options before committing to the most expensive one.
Book a Strategy Session. Make the Move.
The information provided in this blog is for educational purposes only and should not be considered financial advice. Always consult with a professional financial advisor or lender for specific lending decisions.
