The Home Equity Access Scheme formerly 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.
|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:||6.20% Variable|
|Loan amount:||$50,000-$1,000,000 +||Up to 150% of Age Pension per fortnight (maximum additional income per year - $36,121.80 for singles or $54,451.80 for couples)|
- Income stream
- Mortgage refinance
- 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|
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What is the Home Equity Access Scheme (PLS) interest rate?
On 01 January 2021, the Pension Loans Scheme (PLS) was renamed the Home Equity Access Scheme with an 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.