You've probably heard about the Centrelink reverse mortgage, officially called the Home Equity Access Scheme (HEAS). You may have also seen ads for private reverse mortgages. If you've been searching for centrelink reverse mortgage scheme reviews, you've probably noticed most content only explains one product in isolation. Now you're wondering which one actually fits your situation, and what the centrelink reverse mortgage scheme rates look like compared to private options.
The answer comes down to two things: what you need the money for and how you want to receive it. The rate difference is real, but it's not the whole story.
Interest in the government reverse mortgage has grown sharply. Google Trends shows “australian home equity access scheme” at Breakout status. That's partly because the scheme was rebranded from the Pension Loans Scheme (PLS) and expanded from 1 July 2022, opening it to more Australians.
Most information out there explains HEAS in isolation. Nobody puts it next to private products and helps you decide. That's what this guide does.
HEAS vs Private Reverse Mortgage: Side by Side Comparison
Here's the structured comparison you've been looking for. This covers the dimensions that actually matter when choosing between a government reverse mortgage and a private one.
| Feature | HEAS (government) | Private reverse mortgage |
|---|---|---|
| Interest rate | 3.95% p.a., compounding fortnightly | Approximately 8.5% to 9.3% p.a. |
| How you access funds | Fortnightly payments only (plus a one-off advance of up to 50% of annual maximum) | Lump sum, line of credit, regular income, or combinations |
| Minimum age | 67+ (Age Pension age) | 60+ |
| Administered by | Services Australia | Banks and specialist lenders |
| No Negative Equity Guarantee | Yes | Yes, on qualifying products |
| Centrelink means test | Payments not assessed as income under the pension income test | Lump sums may affect the assets test depending on use |
| Maximum borrowing | Capped at 150% of maximum pension rate (combined pension + HEAS) | Based on age, property value, and lender criteria |
| Repayment triggers | Sale of property, death, or voluntary repayment | Sale of property, death, or voluntary repayment |
The rate gap is significant. At 3.95% versus rates in the 8.5% to 9.3% range, the HEAS debt grows much more slowly over time.
But access flexibility is where these products diverge dramatically. HEAS only pays fortnightly. If you need $80,000 upfront for aged care or renovations, the government scheme simply cannot deliver that. A private product can.
The HEAS vs private reverse mortgage decision isn't just about the cheapest rate. It's about matching the product to what you actually need.
When the HEAS is the Better Choice
The Home Equity Access Scheme is ideal if you tick these boxes: you're 67 or older, you want a regular income top-up rather than a lump sum, and you want the lowest possible interest rate.
Here's how the cap works in plain English. The maximum you can receive through HEAS is 150% of the maximum pension rate for your pension type. So if the full single Age Pension is approximately $1,144 per fortnight (as at Q2 2025), the most you could receive from pension plus HEAS combined is roughly $1,716 per fortnight. Both members of a couple can apply jointly, with the maximum based on combined entitlement.
The rate advantage compounds over time. On a loan that may run for 15 to 20 years, the difference between 3.95% and 9% is substantial. Your debt grows far more slowly, leaving more equity in your home.
But this only matters if fortnightly payments actually meet your needs. If they do, HEAS is hard to beat.
Rate advantage: how $100,000 of debt grows over time
The table below shows how much faster private reverse mortgage debt accumulates compared with HEAS, starting from the same $100,000 loan balance. A 9% mid-range private rate is used for illustration; always check current rates.
| Year | HEAS balance (3.95%) | Private balance (9%) | Extra debt at private rate |
|---|---|---|---|
| 10 years | $147,314 | $236,736 | $89,422 more debt |
| 15 years | $178,800 | $364,248 | $185,448 more debt |
| 20 years | $217,015 | $560,441 | $343,426 more debt |
When a Private Reverse Mortgage Makes More Sense
A private reverse mortgage is the better fit when you need something HEAS cannot provide.
That includes a lump sum for a Refundable Accommodation Deposit (RAD) for aged care, home renovations, paying off an existing mortgage, or consolidating debts. It also includes a line of credit you can draw on as needed, giving you flexibility without committing to a fixed payment schedule.
Private products also serve people who are aged 60 to 66 and locked out of HEAS entirely. And they suit anyone who needs more than the HEAS maximum allows.
The higher rate is the trade-off for dramatically more flexibility in how you access your funds. Not all private products charge the top end of the range either. Stryve has access to 50+ lenders, so the rate you get depends on your specific situation.
Aged 60 to 66? Here's what you need to know
If you're between 60 and 66, the HEAS is not available to you. The scheme requires you to be of Age Pension age, which is currently 67 years. There are no exceptions.
That doesn't mean you're without options. Private reverse mortgage lenders accept borrowers from age 60, and the flexibility of private products, including lump sums and lines of credit, may suit your needs well.
If you're unsure whether you qualify for either pathway, check the full eligibility requirements for both HEAS and private products.
How Each Option Affects Your Age Pension
This is where the Centrelink reverse mortgage and private products differ in ways that aren't immediately obvious.
HEAS fortnightly payments are not assessed as income under the pension income test. That means receiving HEAS payments won't reduce your Age Pension entitlement. However, the property used as security continues to be assessed under the assets test as it normally would.
For private reverse mortgages, the picture depends on what you do with the money. A lump sum sitting in your bank account is an assessable asset and may affect your pension. But if you spend it on renovations to your home (which is an exempt asset under the pension assets test), the impact can be very different.
The interaction between reverse mortgages and Centrelink is nuanced. For the full breakdown, read our guide to pension implications.
Can You Have Both at the Same Time?
Yes. You can hold an HEAS loan and a private reverse mortgage simultaneously.
The practical limitation is that total borrowing is capped by the available equity in your property. Both lenders will register a mortgage over the same property, so each needs to be comfortable with the arrangement.
This is uncommon, but it can work in specific scenarios. For example, you might use HEAS for a fortnightly income top-up at 3.95% while taking a private lump sum for a one-off expense like aged care or renovations.
Which Option is Right for You
Use the framework below as your starting point. Find your situation on the left and follow the arrow to the recommended option.
| Your situation | Best option |
|---|---|
| Need a lump sum (any amount, any reason)? | Private reverse mortgage. HEAS cannot deliver lump sums. |
| Want a regular income top-up and aged 67+? | Start with HEAS. Lower rate (3.95%) saves significantly over time. |
| Aged 60 to 66? | Private is your only option. HEAS requires Age Pension age (67+). |
| Need a flexible line of credit? | Private reverse mortgage. HEAS has no line-of-credit option. |
| Lowest possible rate is priority and fortnightly payments work? | HEAS wins. Rate advantage compounds dramatically over 15-20 years. |
Here's how that plays out in practice.
Margaret, 72, wants to top up her Age Pension by $400 per fortnight. She doesn't need a lump sum. HEAS at 3.95% is ideal.
David, 63, needs $80,000 for an aged care RAD. He's too young for HEAS and needs a lump sum anyway. A private reverse mortgage is his only option.
Sue and John, 69, want $50,000 for home renovations. Even though they qualify for HEAS, fortnightly payments won't cover a one-off renovation cost. A private lump sum suits better despite the higher rate.
Not sure which option suits your situation? Book a free consultation with Stryve to compare HEAS and private reverse mortgages side by side, with access to 50+ lenders and full commission transparency.
Frequently Asked Questions
Is the government reverse mortgage better than a private one?
It depends on your needs. The home equity access scheme rate is lower at 3.95% p.a., which saves you significantly over time. But HEAS only provides fortnightly payments, not lump sums. If you need flexibility or a large upfront amount, a private product may be the better choice despite the higher rate.
What is the HEAS interest rate?
The HEAS interest rate is 3.95% per annum, compounding fortnightly on the outstanding loan balance. This rate is set by the Australian Government and administered by Services Australia. It is significantly lower than private reverse mortgage rates, which typically range from 8.5% to 9.3% p.a.
Can I get a lump sum from HEAS?
Not under the standard arrangement. HEAS provides fortnightly payments only. However, a one-off advance of up to 50% of the annual maximum is available as part of the standard HEAS arrangements. For larger lump sums, you would need a private reverse mortgage.
What age do I need to be for a reverse mortgage?
For HEAS, you must be 67 or older (Age Pension age). Private reverse mortgage lenders accept borrowers from age 60. If you're between 60 and 66, private products are your only pathway.
Will a reverse mortgage affect my pension?
HEAS payments are exempt from the pension income test, so they won't reduce your Age Pension. Private reverse mortgage lump sums may affect the assets test depending on how you use the funds. Spending on your home (an exempt asset) has a different impact than holding cash in a bank account.
Is the Pension Loans Scheme the same as HEAS?
Yes. The Pension Loans Scheme (PLS) was rebranded as the Home Equity Access Scheme (HEAS) and expanded from 1 July 2022. If you've seen references to the PLS in older articles or government documents, they are describing the same scheme. The HEAS name is now used in all official communications.
Where can I find centrelink reverse mortgage scheme reviews?
Independent reviews of HEAS specifically are scarce, because the scheme is government-administered and not a commercial product. Most published comparisons focus on private lenders. The most reliable approach is to compare HEAS and private options side by side against your own needs, as this guide does, and to seek advice from a licensed broker with access to both pathways.
Still have questions? Book a free consultation with Stryve to talk through your specific situation with a specialist who can compare both options for you.
Dylan Bertovic is the Director and Senior Finance Broker at Stryve Finance, specialising in non-traditional lending solutions. He helps clients across Australia with tiny home loans, construction finance, equipment and asset lending, refinancing, and investor loans. With deep expertise in self-employed and renovation mortgages, Dylan is known for crafting tailored strategies that get results
