The Home Equity Access Scheme (HEAS) — previously called the Pension Loans Scheme — is a voluntary government program that allows eligible older Australians to access a fortnightly loan secured against their real property, supplementing their income in retirement. It is administered by Services Australia (Centrelink).
What Is the HEAS?
HEAS is a non-taxable, voluntary loan from the Australian Government, secured by a mortgage over real estate you own (your home or other property). It is not a grant — the loan plus compound interest must eventually be repaid, typically when the property is sold or upon death.
The scheme allows eligible people to receive regular fortnightly payments or lump sum advances, using the equity in their home without selling it.
Who Is Eligible for HEAS?
To be eligible, you must:
- Be of Age Pension age (currently 67) or, for some eligible veterans, at the qualifying age for the Veteran’s pension
- Own real estate in Australia with sufficient equity
- Be receiving, or be eligible to receive, an income-support payment (Age Pension, Disability Support Pension, Carer Payment) or be eligible for one but not currently receiving it (e.g., because you’re over the income/assets threshold)
You do not have to be receiving the full Age Pension to be eligible.
How Much Can You Receive?
You can receive up to 150% of the maximum Age Pension rate (combined Age Pension + HEAS loan), with a minimum loan of $1.00/fortnight.
As of 2025, the maximum Age Pension rates are approximately:
- Single: ~$1,116/fortnight
- Couple: ~$1,682/fortnight (combined)
At 150% of these rates:
- Single: up to ~$1,674/fortnight total (Age Pension + HEAS loan combined)
- Couple: up to ~$2,523/fortnight combined
Lump sum advances
From 2022, participants can also access up to two lump sum advances per year, each of up to 50% of the maximum annual Age Pension rate (~$14,500 per advance in 2025).
Interest Rate
The HEAS loan attracts a compound interest rate set by the Government, currently 3.95% per year (as of 2025 — check Services Australia for current rate). Interest compounds fortnightly.
This is significantly lower than commercial reverse mortgage rates. However, because it compounds, the outstanding balance grows over time.
Repayment
The loan (plus compound interest) is repaid:
- When the property is sold
- When you or your estate choose to repay voluntarily
- Upon death — the estate must repay from the property
No Negative Equity Guarantee: The Government guarantees that the amount owing will never exceed the market value of the property used as security — you cannot be left with a negative estate from HEAS.
What Property Can Be Used?
- The property must be in Australia
- Can be your principal residence or another property you own
- Must have sufficient equity to support the loan
- The property must be free of mortgages, or the existing mortgage balance must leave enough equity
How Does HEAS Interact with the Age Pension?
The HEAS loan payments are not counted as income for the Age Pension means test. However, if you use HEAS loan proceeds to accumulate assets (e.g., cash savings), those assets eventually count toward the assets test.
Lump sums from HEAS are assessed under the assets test after 90 days if still held.
How to Apply
- Contact Services Australia (Centrelink) — call 13 23 00 or visit a Centrelink office
- Complete the HEAS application (SA310 form available online)
- Provide property details for the security mortgage
- Services Australia will assess eligibility and property value
The government registers a mortgage over the nominated property as security.
Frequently Asked Questions
Is the HEAS the same as a reverse mortgage? Structurally similar — both allow access to home equity without selling — but HEAS is a government scheme with a lower, regulated interest rate and the No Negative Equity Guarantee. Commercial reverse mortgages from banks typically charge higher rates.
Can I lose my home under HEAS? Only in very limited circumstances (e.g., if you don’t maintain the property or pay rates and insurance). Normal participation does not put your home at risk of forced sale.
Does HEAS affect my super? HEAS operates independently of superannuation. Your super balance and pension drawdown strategy are separate from HEAS.
For more: Government Super Schemes, Super and the Age Pension, Account-Based Pension Explained, How Much Super to Retire. For advice on using home equity in retirement, speak with a licensed financial adviser via MoneySmart.