1300 622 100

Open: 9am - 5pm (AEDST)

Pension Loan Scheme Centrelink

Calculate Equity

Home > Pension Loan Scheme

Centrelink Reverse Mortgage - Home Equity Access Scheme

The Home Equity Access Scheme formally known as the Pension Loan Scheme (PLS) is a federal government reverse mortgage scheme. It aims to provide support for eligible Australian home owners at pension age, even if they are not taking a pension, in the form of a fortnightly income stream by taking out a loan against the equity in their home. It is a reverse mortgage administered by the Department of Human Services and distributed by Centrelink.

The Pension Loan Scheme allows Australian retirees (including self funded retirees) to borrow up to 150% - or 1.5 times - the maximum Age Pension, paid fortnightly. The maximum income available - combined Age Pension and PLS income stream to 150% of the Age Pension rate per annum; this currently corresponds to:

a maximum $36,121.80 per annum for singles
a maximum $54,451.80 for couples.

How A Household Loan Differs From Centrelink’s
Home Equity Access Scheme

	Household Loan	Home Equity Access Scheme (Formerly Pension Loans Scheme)
Age:	60+	Pension age (66 and 6 months or 67 years)
Eligibility:	Australian homeowners	Homeowner (does not have to be a pension recipient)
Interest rate:	4.95%	4.50% (3.95% effective 01 Jan 22)
Loan amount:	$50,000-$1,000,000 +	Up to 150% of Age Pension per fortnight
Payments:	- Capital - Income stream - Mortgage refinance - Renovations - Aged care RADs & DAPs	- Income stream or a capped lump sum advance payment
Locations:	All metropolitan postcodes and some regional areas	Most areas
Maximum loan:	20% of house value at age 65, then 1% each year	Income stream based on a fraction of 25% of house value each at age 65, then approximately 1.1% each year
Property valuation:	At establishment	Annual
Regulations & protections:	Responsible lending applies and subject to the National Credit Code (NCC) including its consumer protections.	Responsible lending does not apply and not subject to the National Consumer Credit Code or its consumer protections. Effective 01 Jan 22 Subject to the National Credit Code (NCC) but not including its broader consumer protections.
Service:	Personalised service by Household Capital team	Administered via Centrelink and subject to in-store or phone queues

A Household Loan Provides Choice & Flexibility

You can utilise your Household Capital via one or a range of ways from super top-up to becoming the bank of mum and dad.

HHC Icon - _TOP UP

Top up

Increase retirement income or set aside a contingency fund

HHC Icon - _REFINANCE

Refinance

Refinance a mortgage or consolidate debts

HHC Icon - _LIVE

Live

Fund home repairs, renovations, or expenses

HHC Icon - _CARE

Care

Cover medical, dental, in home or aged care

HHC Icon - _GIVE

Give

Gift family with a home deposit or education

It's As Easy As 1, 2, 3!

CONFIRM ELIGIBILITY

Use our online calculator to see your accessible Household Capital.

PERSONAL CONSULTATION

Experience one-on-one personalised service with a retirement specialist.

APPLICATION

We guide you through every step of the application process.

Frequently Asked Questions

Who can get the Centrelink PLS?

There’s a range of eligibility criteria to qualify for the Centrelink PLS reverse mortgage. These include:

You must be of Age Pension age
You must qualify for or receive an eligible payment; this includes the Age Pension, disability support pension and widow’s pension
You must own real estate in Australia with enough equity to secure the loan
You must have adequate insurance covering the secured real estate
You must not be bankrupt or subject to a personal insolvency agreement.

While Centrelink PLS reverse mortgages do provide occupancy and No Negative Equity Guarantees, Centrelink officers who administer Centrelink PLS reverse mortgages are not subject to responsible lending laws.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

How much can I borrow with the Centrelink PLS?

The maximum total loan available is a function of your age, the equity you have in your home and the value of your property. This limitation exists so you don’t end up owing more than your home is worth.

The maximum income available - combined Age Pension and PLS income stream to 150% of the Age Pension rate per annum; this currently corresponds to:

a maximum $36,121.80 per annum for singles
a maximum $54,451.80 for couples.

Individual amounts are dependent on whether applicants receive a full or part pension.

Income received via the Centrelink PLS reverse mortgage may be reduced or ceased in the future if the value of your home drops.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

What is Centrelink's Home Equity Access Scheme or the PLS?

The original Pension Loans Scheme launched in 1985 to assist ‘assets tested’ age pensioners. It was expanded in 1997 to include income-tested age pensioners. Over the first 30 years of the program, the Centrelink Pension Loans Scheme reverse mortgage met the needs of a very small number of retired Australians, primarily rural farm owners.

The scheme is changing again from the 01st of January 2022 to extend eligibility to all Australian's at pension age regardless of whether they are receiving an aged pension or are self funded retirees.

The Home Equity Access Scheme allows you to borrow up to 150% - or 1.5 times - the maximum Age Pension, paid fortnightly. This does offer restrictions to those on the pension and means there is a limit to only access $18,000 per year.

Our Household Loan offers greater flexibility with payment options to Australians aged 60 and over along with the Lifetime occupancy consumer protection.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

What is the Home Equity Access Scheme (PLS) interest rate?

The Centrelink PLS reverse mortgage interest rate is currently 4.50%. Effective 01 January 2021, the Pension Loans Scheme (PLS) will be renamed to be the Home Equity Access Scheme with a reduced interest rate of 3.95%.

While there are no establishment fees or monthly account fees, Centrelink may charge costs including legal fees. These costs are determined once the loan application is made and can either be paid immediately or added to the loan balance.

Learn about our Household Loan interest rates.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

How does the government get its money back from a Centrelink PLS reverse mortgage?

The Centrelink PLS reverse mortgage is enforceable against your property. When the last borrower leaves your home, or it is sold, you need to repay the principal and accrued interest to the government. The government can enforce the Centrelink PLS reverse mortgage against the departing owners or the estate upon death.

Try our equity calculator or call us on 1300 622 100. See how using your Household Capital could improve your retirement income. Live Well At Home™

How Our Customers Rate Us

You May Also Like