As retirement approaches, many Australians seek ways to enhance their financial stability without giving up their homes or lifestyles.
One excellent option is the Centrelink Home Equity Access Scheme (HEAS), a government initiative that allows eligible seniors to access funds by tapping into the equity of their property.
This guide will walk you through everything you need to know about HEAS in 2025, including its benefits, payment options, eligibility criteria, recent updates, and the application process.
What is the Home Equity Access Scheme?
The Home Equity Access Scheme (formerly the Pension Loans Scheme) is designed to help older Australians increase their income without needing to sell their homes.
By using the equity in their property, seniors can access a non-taxable loan from the government, providing them with a financial buffer during retirement. This option is ideal for those who aren’t receiving enough from their pension or who aren’t eligible for one at all.
Benefits of HEAS
The scheme offers several benefits for retirees looking to supplement their income:
- Maintain Homeownership: Seniors can remain in their homes while receiving financial support.
- No Immediate Repayments: Repayments are voluntary, with the loan due when the property is sold, the person moves into aged care, or after their death.
- No Negative Equity Guarantee: You will never owe more than the value of your home when sold.
Key Features of the HEAS 2025
| Feature | Details |
|---|---|
| Eligibility | Age Pension age or older, must own property in Australia, meet residency requirements, not bankrupt or under insolvency |
| Loan Amount | Up to 150% of maximum pension rate, based on property value and age |
| Interest Rate | 3.95% per annum, compounding fortnightly |
| Payment Options | Fortnightly payments, lump sum (up to 50% of pension within 26 fortnights), or a combination |
| Repayment | Voluntary anytime, or upon sale of property, death, or entry into aged care. No negative equity guarantee applies |
| Recent Update | March 2025: Cost-of-living adjustments and a one-time $5,000 Centrelink cash boost |
| Application | Apply online via Services Australia; required documents include proof of identity and property details |
Who Can Apply for the Home Equity Access Scheme?
You can apply for the Home Equity Access Scheme if:
- You are of Age Pension age or older (currently 67 years old)
- You own a property in Australia
- You meet residency requirements
- You are not bankrupt or under a personal insolvency agreement
Even if you are not currently receiving a pension, you may still qualify if you’re eligible for one or meet the other criteria.
How Much Can You Receive Through HEAS?
The total amount you can receive through HEAS, combined with your Age Pension, cannot exceed 150% of the full Age Pension amount. You have a few options for how you can access your funds:
- Fortnightly payments to supplement your income
- Lump sum advances (up to 50% of the full pension over a 26-fortnight period)
- A combination of both
For example, if you are eligible for the full Age Pension of $1,100 per fortnight, you could receive up to $1,650 total per fortnight through HEAS.
Interest Rate and Repayment Terms
The interest rate for HEAS is 3.95% per annum, and it compounds fortnightly. However, no payments are required while you are receiving the loan, and you can choose to make repayments at any time without penalty.
The loan (including accrued interest) is typically repaid:
- When you sell your property
- If you enter long-term care
- After your death through your estate
A significant advantage of the HEAS is the no negative equity guarantee, ensuring that you or your estate will never owe more than the property’s sale price.
What’s New in 2025?
While the Home Equity Access Scheme remains largely unchanged in 2025, there are two key updates:
- Cost-of-Living Adjustments: From March 2025, the Age Pension will be increased to help seniors cope with inflation.
- $5,000 Centrelink Cash Boost: Eligible Australians will receive a one-time $5,000 payment to alleviate financial strain. This boost is available even for those who are utilizing the HEAS.
How to Apply for the Home Equity Access Scheme
Here’s a step-by-step guide to applying for Centrelink’s Home Equity Access Scheme 2025:
- Check Eligibility – Ensure you meet the required criteria for the scheme.
- Understand the Costs – Use the HEAS calculator on the Services Australia website to estimate how much you can receive.
- Prepare Your Documents – Gather proof of identity, property ownership, and income details.
- Seek Advice – Consult a financial planner or Centrelink’s Financial Information Service for guidance.
- Apply Online – Log in through your myGov account linked to Centrelink or visit a Services Australia office to apply in person.
Real-Life Example: Margaret’s Story
Margaret, a 73-year-old woman from Perth, only receives a part Age Pension of $500 per fortnight. To supplement her income, she applies for HEAS and receives an additional $700 per fortnight, allowing her to live more comfortably. Margaret plans to repay the loan from her estate when the property is sold in the future.
The Centrelink Home Equity Access Scheme is a valuable financial resource for older Australians, offering a flexible and low-risk way to supplement retirement income without selling a home. With low-interest rates, repayment flexibility, and government backing, the scheme provides a great opportunity for seniors seeking financial freedom. With the 2025 updates, including the $5,000 cash boost, now is the ideal time to consider applying for the HEAS.
FAQs
What is the maximum loan amount I can receive through HEAS?
The maximum loan amount depends on your age and property value, but it can be up to 150% of the full Age Pension.
Can I apply for HEAS if I’m not currently receiving a pension?
Yes, you can still apply for HEAS as long as you meet the other eligibility criteria, even if you are not currently receiving a pension.
What happens if I cannot repay the loan during my lifetime?
If you do not repay the loan during your lifetime, it will be repaid through the sale of your property or from your estate after your death. The no negative equity guarantee ensures that you or your estate will never owe more than the value of the property.