The Centrelink Home Equity Access Scheme (HEAS) allows eligible older Australians to unlock cash from their home’s value without selling. In 2024, the scheme has undergone important updates, including higher payment limits and expanded eligibility.
This comprehensive guide explains how the Home Equity Access Scheme works, who qualifies, payment amounts, and how to apply to supplement your retirement income.
What Is the Centrelink Home Equity Access Scheme?
The Home Equity Access Scheme (HEAS), formerly known as the Pension Loans Scheme, is a government-backed reverse mortgage that lets homeowners aged 67+ borrow against their property to boost retirement income.
Key Features of HEAS 2024:
- No need to sell your home – You keep ownership.
- Flexible payments – Receive fortnightly income or a lump sum.
- Low interest rate – Currently 5.25% (lower than commercial reverse mortgages).
- Debt repaid later – Either when you sell, move out, or pass away.
2024 Changes to the Home Equity Access Scheme
1. Higher Maximum Loan Amounts
- Singles can now access up to $50,000 (previously $27,000).
- Couples can get up to $75,000 (up from $40,500).
2. Expanded Eligibility
- Now open to full and part pensioners, as well as self-funded retirees.
- Minimum age remains 67 (or 65 for Indigenous Australians).
3. No Negative Equity Guarantee
- You can never owe more than your home’s value, even if property prices fall.
4. Lump Sum Option Now Available
- Previously, only fortnightly payments were allowed. Now, you can take a one-off advance.
Who Is Eligible for the Home Equity Access Scheme?
To qualify for HEAS in 2024, you must:
- Be 67+ years old (or 65+ for Aboriginal or Torres Strait Islander people).
- Own real estate in Australia (home, investment property, or vacant land).
- Have enough equity (usually at least 50% ownership).
- Meet property requirements (must be marketable and well-maintained).
Note: You do not need to be on the Age Pension to qualify.
How Much Can You Get Under HEAS?
Your maximum payment depends on:
- Your age (older applicants get higher limits).
- Property value (higher equity = larger loan potential).
- Existing debts (if any).
Estimated Fortnightly Payments (2024 Rates)
| Age | Single | Couple (Combined) |
|---|---|---|
| 67-69 | $1,050 | $1,580 |
| 70-74 | $1,210 | $1,820 |
| 75+ | $1,430 | $2,150 |
(These amounts are on top of any existing Age Pension payments.)
How to Apply for the Home Equity Access Scheme
Step 1: Check Eligibility
- Use the Centrelink HEAS estimator tool on Services Australia.
- Call Centrelink on 132 300 for a pre-assessment.
Step 2: Get a Property Valuation
- Centrelink requires an independent valuation (costs ~$300-$500).
Step 3: Submit Your Application
- Complete the Home Equity Access Scheme form (SA326).
- Provide proof of identity, property ownership, and income details.
Step 4: Receive Approval & Start Payments
- Processing takes 4-6 weeks.
- Choose between fortnightly payments or a lump sum.
FAQs: Centrelink Home Equity Access Scheme 2024
1. Is HEAS the Same as a Reverse Mortgage?
Similar, but HEAS has lower interest rates (5.25%) and government safeguards.
2. What Happens If I Move Into Aged Care?
The loan becomes due, but you can repay it from aged care accommodation payments.
3. Can My Children Inherit My Home If I Use HEAS?
Yes, but the loan + interest must be repaid first from the sale proceeds.
4. Can I Make Early Repayments?
Yes, you can pay back any amount at any time without penalties.
5. What If My Home’s Value Drops Below the Loan?
The No Negative Equity Guarantee ensures you never owe more than the home’s worth.
Pros & Cons of the Home Equity Access Scheme
✅ Advantages
- Extra tax-free income in retirement.
- No forced sale – Keep living in your home.
- Lower rates than bank reverse mortgages.
❌ Disadvantages
- Reduces inheritance for heirs.
- Compound interest increases debt over time.
- Property must meet Centrelink’s standards.
Alternatives to HEAS
If HEAS isn’t right for you, consider:
- Downsizing (may affect Age Pension).
- Commercial reverse mortgage (higher rates but more flexible).
- Age Pension supplements (if eligible).
Final Advice: Is HEAS Right for You?
The Home Equity Access Scheme can be a smart way to unlock cash without selling, but it’s not for everyone. Before applying:
✔ Calculate long-term costs (use Centrelink’s estimator).
✔ Discuss with family (impacts inheritance).
✔ Compare alternatives (reverse mortgages, downsizing).
Need help? Call Centrelink on 132 300 or visit Services Australia.
By understanding the 2024 HEAS changes, you can make an informed decision about boosting retirement income while keeping your home. Act now—secure your financial future today!