• a maximum $42,771.30 per annum for singles


• a maximum $64,482.60 for couples.

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 has now changed and as of the 1st of January 2022 is now known as the Home Equity Access Scheme (HEAS) and is extended to all Australians 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 057 080. See how using your Household Capital could improve your retirement income. Live Well At Home™

On the 1st of January 2022, 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.

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™

The PLS/HEAS is a government administered home equity scheme that enables Australians of Age Pension age to draw a modest income stream or capital payment each year. Unlike a reverse mortgage, it is not covered by the National Consumer Credit Protection Act, although the ‘no negative equity guarantee’ was recently adopted. Commercial reverse mortgages are generally more flexible in terms of the amount of income and capital available.

The term over which you could potentially receive payments under the HEAS is dependent on:

• The amount of any Age Pension (or similar welfare payment e.g. widows pension) you (or you and your partner – if applicable) receive
• The net equity (i.e. the value of your property less any loans secured by that property) you have in your property
• Your age, or the age of the youngest partner, if you’re in a couple relationship
• The amount of Home Equity Access loan per fortnight you wish to access
• The value of any Requested Amount (i.e. an amount of equity you always wish to keep in your property) you determine

Generally speaking, the older you (and/or your partner) are, and the higher the net equity in your property, the longer the Home Equity Access loan payments can be made.

Generally retirement villages and relocatable homes do not include title over the land on which the dwelling/building resides, which is why the government does not accept these forms of property as security for Home Equity Access loans.

Of course you can! You just need to ensure you communicate your changes to Centrelink/DVA. The HEAS includes options to:

• Take ether the maximum payment or a lower amount
• Reduce or increase the payment amount (within the maximum permitted)
• Pause your payment for a period if you don’t need the funds
• Restart your payments if you need the funds again
• Request a lump sum advance
• Select a ‘Requested Amount’ or not

Pension Boost can assist you in relation to managing your Home Equity Access loan on an ongoing basis to ensure you remain in control of your finances.

You can use the payments you receive each fortnight under the HEAS for any purpose you wish. This could be to fund regular bills, pay for in-home care services, enjoy life’s little luxuries, a short holiday, take care of those repairs you’ve been putting off – whatever you like.

No. We’ve now run literally 10,000’s of scenarios for seniors and the median home value is $500,000. Somewhat surprisingly, a significant proportion of seniors using our calculator have mortgages outstanding. A significant majority of seniors are on the Full Age Pension and advise us they are struggling to make ends meet.

No. The Home Equity Access Scheme is a loan-based payment scheme, drawing on the equity (capital) you have built in your home, so it does not impact your income tax position.

No. Whilst the Home Equity Access Scheme is linked to the Age Pension (by the maximum payment level being tied to 150% of the Full Age Pension), accessing the HEAS does not impact your Age Pension entitlements.

No problem – just select the level of payments you need each fortnight. You can always change the level of payments by notifying Centrelink/DVA. Household Capital can assist you to determine the level of Home Equity Access loan that you’d be comfortable with.

Household Capital recommends you discuss your situation with your family before considering applying for the HEAS. We are also happy to talk with them, if required, as we often have children of seniors enquiring on behalf of their parents.

A feature within the HEAS is the ‘Requested Amount’, which is an amount you can ask to be reserved for you for your future needs (like aged care facilities) or your estate.

No. The HEAS now comes with a No Negative Equity Guarantee which means you will not be liable for a HEAS debt that exceeds the value of your property when sold.

No. Rather than a full registered mortgage the government secures its Home Equity Access loan to you via a ‘registered lien’ or ‘registered charge’ over the property you put up as security for your Home Equity Access loan.

You will need to provide copies of the below when you start your HEAS application:

• Your property Title Deed or Certificate of Title; and
• A recent Land Valuation Notice or Council Rates Notice; and
• Your current insurance policy over the property; and

If you have an existing loan secured over the property, you also need to provide copies of a:

• Recent loan statement
• Loan contract

Approval of a Home Equity Access loan application is made in writing by Centrelink / DVA and this usually occurs in 10 – 14 weeks, depending on the complexity of the application.

The HEAS now provides a lump sum option which works like an advance payment and is available to all HEAS borrowers including existing borrowers.
The maximum lump sum you can access in a twelve month period is 50% of the full annual age pension which (as at 20 Sept 2022) is:

• Couples lump sum maximum – $20,852
• Singles lump sum maximum – $13,832

If you draw a lump sum from the HEAS this will reduce your HEAS fortnightly payments over the next 12 months.

Examples:

1. Couple on the full age pension wishes to access $13,000 as a lump sum and draw the maximum HEAS payments. Their maximum HEAS payments of $802 / fortnight will be reduced by $500 ($13,000 / 26). Over the year they will receive $20,852 in HEAS payments (being the current maximum for full age pension couples).

2. Single self funded retiree wishes to access maximum lump sum and HEAS payments. Their lump sum of $13,832 will reduce their HEAS fortnightly payments by $532. Over the year they will receive $41,496 in total HEAS payments (being the current maximum for a self funded single).

Provided you meet the residency, pension age and property ownership criteria if your property is co-owned with a third party then you are still eligible for the HEAS but only for your relevant pro-rata share of the net equity in the property.

The co-owner(s) need to consent to your applying for the HEAS and they must sign their section of the HEAS application in front of a suitably qualified witness (eg Justice of the Peace).

Pension Boost is a subsidiary of Household Capital, an Australian independent retirement funding provider founded in 2016 with a mission to help retired Australians Live Well at Home. It offers retirees a responsible, sustainable, and flexible financial solution that allows them to bundle their superannuation savings, equity in their home and their Aged Pension to achieve their retirement goals while continuing to live at home.

There are 1.8 million seniors on the Age Pension who own property, many of whom could use additional cashflow to better enjoy their retirement.

Pension Boost are specialists in the Australian Government’s Home Equity Access Scheme (HEAS). We act as your agent when dealing with Centrelink/DVA to take the hassle out of the process for you.

Some of the ways Pension Boost assists seniors includes:

• Raising awareness of the HEAS (one of the government’s best kept secrets)
• Educating seniors on what the HEAS is, its ‘rules’ and how it works
• Assisting seniors and their families decide whether the HEAS may be of benefit to them
• Determining the type of Home Equity Access loan that best suits a senior’s individual circumstances
• We remove the hassle of dealing with Centrelink/DVA by acting as an ‘agent’
• Assisting seniors with their application for the HEAS
• Dealing with any questions or queries raised by Centrelink/DVA
• Providing ongoing reporting and reviews of a senior’s cash flow needs and Home Equity Access loan level, to ensure they remain in control of the net equity in their home, and have the funds to make ends meet

Provided you meet the residency, pension age and property ownership criteria then if your property is owned by a closely held private company or private trust then you are still eligible for the HEAS.

There maybe additional forms that may need to be lodged in relation to the company or trust and the company or trustee will need to provide a written guarantee in relation to the HEAS debt.

No. Based on our legal advice and discussions with DSS, Centrelink and ASIC, while the HEAS is a ‘reverse mortgage like’ scheme, the HEAS is technically a  ‘welfare claim’ under the Social Security Act and therefore is not subject to the regulations applying to commercial providers of reverse mortgage loans. The exception is the ‘no negative equity guarantee’ protection, which was applied to HEAS from 1 July 2022 (and which has applied to commercial providers since 2012).

No. Centrelink/DVA will arrange for an independent valuation of your property before your loan is approved. Centrelink/DVA pay for this valuation and not the applicant(s).

During COVID-19, to protect seniors health and safety, many valuations are being done as either desktop valuations (using averages for your style home in your area) or drive-by valuations.

If you disagree with the Centrelink/DVA valuation you can request another valuation.

If you are currently receiving the Age Pension or similar seniors welfare payment (or a DVA pension) and you own property in Australia, you will most likely meet the eligibility criteria.

To be eligible for the HEAS you (or if you are in a couple relationship at least one of you) need to meet the following criteria:

1. Meet Centrelink’s Australian residency requirements:
You need to have been an Australian resident for at least 10 years in total. For the last five (5) of these years, there must not have been any break in your residency.

• You are an Australian resident if you live in Australia and are either:
  1. An Australian citizen; or
  2. A permanent residence visa holder; or
  3. A protected Special Category visa (SCV) holder

2. Be at least of Age Pension Age which is currently 66 years old but increasing to 67 as shown below:

3. Own real estate property in Australia which includes:

• Houses *
• Apartments / Units / TownHouses *
• Farm (or hobby farm)
• Commercial premises
• Retail premises
• Vacant land / bush block
• Home office / business
• Self contained flat (part of or attached to a residence)
• Market garden
• Residential block larger than 2 hectares

* There are two notable exceptions (due to not having title to the underlying land)

Retirement villages
Relocatable homes

The Australian government is the provider of the Home Equity Access Scheme and the Scheme is administered via the Department of Human Services/Centrelink and for veterans via the Department of Veterans Affairs (DVA).

The Australian Government has provided the Home Equity Access Scheme (in various forms) since 1985. The scheme was previously known as Pension Loans Scheme (PLS) until 31 December 2021.