Centrelink’s Home Equity Access Scheme in 2025: A government loan program that gives seniors the opportunity to tap into their home’s assets without having to sell their home.
If you are an older Australian trying to boost your retirement income without having to promote your home, Centrelink’s Home Equity Access Scheme (HEAS) in 2025 may be a critical financial guide for you. This authority’s scheme lets in eligible seniors to access income through the use of the fee of their domestic, without having to sell it. This scheme is a great alternative for retirees who want to hold their independence and stay in a cushy existence.
Think of it as opening a treasure chest inside your home. You don’t have to downsize, move out, or compromise on home ownership. Instead, you convert some of your home assets to generate income—it’s a secure and low-interest loan backed by the government. This scheme is a great solution for seniors who want to stay in their home and still have access to money.
Previously known as the ‘Pension Loan Scheme,’ HEAS is a scheme that provides a non-taxable, low-interest loan against your home as collateral. Whether you are receiving a full pension, partial pension, or no pension at all, the scheme opens a financial door for thousands of seniors in Australia aged 67 and above. The scheme is a practical solution to the rising costs of living, healthcare needs, and lifestyle aspirations of modern retirees.
Home Equity Access Scheme by Centrelink in 2025
| Feature | Details |
|---|---|
| Eligibility Age | Age Pension age or older (currently 67 years) |
| Interest Rate (2025) | 3.95% per annum (compounded fortnightly) |
| Maximum Loan Rate | Up to 150% of your maximum pension rate |
| Repayment Options | Voluntary repayments anytime or repaid from estate upon death |
| Payment Types | Fortnightly income, lump sum (up to 2/year), or both |
| Property Requirement | Must own Australian real estate with adequate insurance |
| Official Website | Services Australia – HEAS |
HEAS Features
The Home Equity Access Scheme is a voluntary, reverse mortgage-style loan that allows seniors to access the value of their property. The scheme is non-taxable and does not affect Old Age Pension entitlements in most cases. It also comes with a “no negative equity guarantee,” which means the loan balance can never exceed the sale price of the home.
This plan is ideal for retirees who:
- Own their home or have substantial assets.
- Need additional income for living expenses, healthcare, or personal goals.
- Want to access financial resources while living at home.
This is a practical way to reduce financial stress, especially during times when inflation is rising or unexpected life events occur.
Why choose HEAS in 2025?
Many retirees face financial stress due to rising inflation and the cost of living. HEAS in 2025 is particularly beneficial as it offers flexible payment options, low interest rates, and an improved application process through the myGov portal.
Many older Australians find themselves “asset rich but income poor.” They may have valuable real estate but not enough cash flow to meet everyday needs. HEAS solves this problem because it turns property equity into useful income while retaining home ownership and residency.
What can you use this money for?
- Paying for aged care services at home.
- Renovating or improving your home so it is safe and comfortable.
- Travel, hobbies, or lifestyle expenses.
- Supporting grandchildren’s education or helping family members.
- Reducing debt or covering emergency expenses.
Real-life example:
Margaret, who is 72 years old and lives in Sydney, owns a home worth $800,000. However, she only receives a partial old age pension. To boost her income, she applied for HEAS and received an extra $400 every fortnight. Later, she took a lump sum of $10,000 to pay for cataract surgery and home safety improvements. She is living independently in her home and voluntarily makes some small repayments to bring the loan balance under control.
Her children are happy they did not have to sell the home, and Margaret is comforted knowing she can access the money when she needs it.
Who can be eligible for HEAS?
To be eligible for HEAS in 2025, you must meet the following conditions:
- You must be of Old Age Pension age (67 years in 2025).
- You must be receiving or eligible for one of the Old Age Pension, Disability Support Pension, Care Payment, or certain DVA pensions.
- You own property in Australia, which can be either your main home or an investment property.
- You have adequate insurance coverage on the property.
- Be free from bankruptcy or personal insolvency agreements.
You don’t need to be an existing Centrelink customer, but if you have a myGov account, it can make the process easier.
How much can you get?
As of 2025, you can borrow up to 150% of the maximum fortnightly payment of the Old Age Pension. This includes both singles and couples:
- Single person: Around $1,604 per fortnight.
- Couple (joint): Around $2,421 per fortnight.
Your actual loan amount will depend on:
- The value and equity of your property.
- Your age and the age of a partner, if you have one.
- Any existing debt on your home.
The equity you wish to access.
How does the interest work?
HEAS has a compounding interest rate of 3.95%, which is calculated on a fortnightly rate. This means that interest is added to the loan balance every two weeks, and over time, the amount keeps increasing unless you voluntarily make repayments.
You do not need to make regular repayments.
The loan is usually repaid:
- When the home is sold.
- When the last surviving borrower passes away.
- Or through voluntarily making payments.
Due to the “No Negative Equity Guarantee,” if the loan balance ever exceeds the home’s sale price, the government absorbs the difference. This protects your property, and your family does not incur any debt.
How to apply for HEAS?
- Prepare documents: identity card, property ownership information, proof of income and assets, and insurance documents.
- Start the application: You can apply through myGov, call 132 300, or visit your nearest Centrelink office.
- Assessment process: Centrelink will confirm your eligibility, professionally evaluate the property, and determine your payment options.
- Choose a payment option: You’ll need to select a payment method—fortnightly payments, a lump sum, or both.
- Get paid: Payments will be deposited directly into your bank account.
Advantages and disadvantages of HEAS
Advantages:
- Leverage property while living in the home.
- Government support, low interest rates.
- Flexible structure: fortnightly payments, lump sum, or both.
- Non-taxable payments.
- No regular repayments are required.
- “No negative equity guarantee” protects your property.
Disadvantages:
- Interest accumulates over time, increasing the loan balance.
- Your property may lose value.
- Insurance and maintenance of the property are required.
- The application process takes documentation and time.
- Only applicable to Australian real estate.
HEAS can be a vital tool to provide financial security in your retirement, allowing you to make the most of your assets while still maintaining a comfortable and stable life.
FAQs
What is the Home Equity Access Scheme (HEAS)?
HEAS allows seniors to access income by converting home equity into a low-interest government loan, helping boost retirement income without selling their home.
Who is eligible for HEAS?
To qualify, you must be at least 67, receiving or eligible for Old Age Pension or other specified benefits, own property, and meet insurance and bankruptcy conditions.
How much can I borrow through HEAS?
In 2025, you can borrow up to 150% of the maximum fortnightly Old Age Pension payment, which is about $1,604 for singles and $2,421 for couples.