Australia’s Home Equity Access Scheme (HEAS) allows eligible pensioners to borrow against their home equity to boost retirement income—without selling their property. In 2024, the scheme has been expanded with higher loan limits and flexible repayment options.
This comprehensive guide explains:
✔ 2024 eligibility criteria (age, property, and pension rules)
✔ How much you can borrow (new loan limits)
✔ Step-by-step application process
✔ FAQs on repayments, interest rates, and risks
What Is the Home Equity Access Scheme?
HEAS is a government-backed reverse mortgage that lets older Australians access:
- Fortnightly payments (added to pension)
- Lump sums (for emergencies/renovations)
- No forced sales (loan repaid when property is sold)
2024 Update: Maximum loan amounts increased by 15% due to rising home values.
2024 Eligibility Criteria
1. Age & Residency Requirements
✔ Age 67+ (or 65+ for Indigenous Australians)
✔ Australian resident for ≥10 years
✔ Homeowner (must live in the property)
2. Property Rules
- Home value: ≤$1.2 million (urban) / ≤$800,000 (regional)
- No existing mortgage (or small balance under $50k)
- Not in aged care (unless spouse remains at home)
3. Pension Status
- Must receive Age Pension, DSP, or Carer Payment
- Part-pensioners qualify if assets ≤$1 million
2024 Loan Amounts & Payment Options
Maximum Loan Amounts
| Property Value | Max Lump Sum | Max Monthly Income |
|---|---|---|
| $800,000 | $240,000 | $1,200 |
| $1.2 million | $360,000 | $1,800 |
Note: Amounts are capped at 45% of home equity.
Payment Choices
- Fortnightly Income Boost: $200–$1,800
- Lump Sum: Up to $50k initially
- Combination: Mix of both
Interest Rates & Repayments
2024 HEAS Interest Rate
- 3.95% p.a. (lower than commercial reverse mortgages)
- Compound interest (added to loan balance)
Repayment Rules
- Voluntary repayments allowed anytime
- Mandatory repayment: When property is sold
- No negative equity guarantee: Never owe more than home value
How to Apply in 2024 (4 Steps)
Step 1: Check Eligibility
- Use the Centrelink HEAS Calculator
Step 2: Get Property Valued
- Free valuation via Services Australia
Step 3: Submit Application
- Online: MyGov → Centrelink
- Paper Form: SA326
Step 4: Sign Loan Agreement
- 14-day cooling-off period
- First payment in 4–6 weeks
FAQs About HEAS 2024
Q1: Will HEAS reduce my Age Pension?
No—payments are exempt from income tests.
Q2: Can I use HEAS for investment properties?
No—only primary residences qualify.
Q3: What if my home value drops below the loan?
The no negative equity guarantee protects you.
Q4: Can heirs inherit the property?
Yes—they can repay the loan or sell the home.
Q5: How is HEAS better than bank reverse mortgages?
Lower rates, no monthly repayments, and government backing.
Pros & Cons of HEAS
Advantages
✅ Tax-free payments
✅ No credit checks
✅ Keep pension benefits
Risks
❌ Reduces inheritance
❌ Compound interest grows debt
❌ Limited to older homeowners
Alternatives to HEAS
- Downsizing super contribution (Up to $300k tax-free)
- Pension Loans Scheme (Similar but for non-homeowners)
- Commercial reverse mortgages (Higher limits but riskier)
Conclusion: Is HEAS Right for You?
HEAS is ideal for asset-rich, cash-poor pensioners needing extra income without moving.
Next Steps:
✔ Calculate your potential loan via Centrelink
✔ Compare with downsizing options
✔ Consult a financial advisor
Need Help?
- Centrelink HEAS Line: 132 300
- Free Financial Counseling: 1800 007 007
Your home equity could unlock financial freedom—explore HEAS today!