Pension Loan Scheme Centrelink

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 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

Launched in 1985, the PLS aimed 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 was changed again from 1 July 2019 to extend eligibility to a broader range of pensioners of Age Pension age, including those currently receiving the maximum rate Age Pension.

The PLS allows you to borrow up to 150% - or 1.5 times - the maximum Age Pension, paid fortnightly.

Try our equity calculator or call us on 1300 622 100 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

The Centrelink PLS reverse mortgage interest rate is currently 4.50% effective 01 January 2020, down from 5.25%. The rate is set by the Minister for Social Services without reference to RBA rates – until January's change, the rate had remained static since 1997.

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 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.

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 to see how using your Household Capital could improve your retirement income so you can stay safe and Live Well At Home.