Home equity access scheme explained
Your home is probably your most valuable asset. Using it as security for a loan is not a decision to take lightly. The Australian government reverse mortgage scheme, known as HEAS, lets eligible retirees borrow against their property at 3.95% per annum and receive fortnightly payments to supplement their income. It is not a Centrelink payment or a grant. It is a government-backed [reverse mortgage](/services/reverse-mortgage) with a no negative equity guarantee, meaning the debt can never exceed your property's value. Most retirees do not know this centrelink reverse mortgage option exists. Whether you receive the full Age Pension or are entirely self-funded, this page will help you understand exactly what HEAS offers, what it costs, and what it cannot do.
A government-backed loan at 3.95% per annum
The home equity access scheme is a voluntary, non-taxable loan. Services Australia (Centrelink) administers it as a government reverse mortgage, and the interest rate is 3.95% per annum.
That rate is roughly half what private lenders charge. Most private reverse mortgage products sit between 8.5% and 9.3% per annum. The gap matters more than it looks on paper, because HEAS interest compounds fortnightly on the outstanding balance.
If you borrow $10,000 through HEAS at 3.95%, after five years the balance grows to approximately $12,170. The same $10,000 borrowed from a private lender at 8.5% would grow to approximately $15,220. That is a $3,050 difference on a modest loan.
The compounding works like this: every fortnight, interest is calculated on the total amount you owe, including all previously accumulated interest. The debt grows slowly at first, then accelerates over time.
For retirees comparing options, the 3.95% rate is the single strongest argument in favour of HEAS over private alternatives. To see how current private lender rates compare, check the latest reverse mortgage interest rates.
How much can you receive through the home equity access scheme?
HEAS pays fortnightly amounts. Not lump sums. Not lines of credit. This is the structural limitation you need to understand before anything else.
The maximum fortnightly payment is 150% of the maximum Age Pension rate. For a single person, that is approximately $1,633.20 per fortnight. For a couple combined, it is approximately $2,462.40 per fortnight. These figures are based on Services Australia rates as at March 2025.
If you already receive a partial or full Age Pension, HEAS tops up your income to the maximum you choose, up to that 150% ceiling. Self-funded retirees who receive no pension can access the full 150%.
You do not have to take the maximum. You choose the fortnightly amount that suits your budget, and you can stop or restart payments at any time.
Advance lump sum payments are available under certain conditions, but they are treated differently from regular fortnightly payments for Centrelink assessment purposes. This distinction is covered in the pension interaction section below.
When the loan is repaid, the debt and accumulated interest are recovered from the sale of the property. The no negative equity guarantee protects your estate: the debt can never exceed the value of the secured property at the time of sale.
Home equity access scheme eligibility
Both full Age Pension recipients and self-funded retirees can qualify. Applications go through Services Australia, not through a private lender or broker. For a broader look at who qualifies across all reverse mortgage products, see the full reverse mortgage eligibility criteria.
Age: 67 or older
You must have reached Age Pension age, which is currently 67. If you are part of a couple, both of you must meet this threshold to apply jointly.
Own real property in Australia
You need to own real property. This can be your home, an investment property, or both. If you own an investment property but rent where you live, you may still qualify.
Meet Australian residence rules
You must be an Australian resident and meet the residence requirements that apply to Age Pension eligibility. If you have lived in Australia for at least 10 years, you are likely covered.
Pension status does not matter
Full pensioners, part pensioners, and self-funded retirees who receive no pension at all can apply. Can self-funded retirees access HEAS? Yes. The scheme is open to all eligible retirees regardless of pension status.
Will HEAS payments affect your age pension?
This is the question that matters most, and the one most often answered incorrectly.
Regular fortnightly HEAS payments are exempt from the Age Pension income test. Services Australia confirms this: regular HEAS fortnightly payments are not counted as income under the pension income test. For regular payments, your pension stays the same.
Advance lump sum payments are different. If you take an advance payment, Centrelink treats the unused portion sitting in your bank account as a financial asset. It then assumes that asset earns income at the deeming rate, regardless of what it actually earns.
In plain terms: if you take a $10,000 advance and leave it in your savings account, Centrelink assumes it earns income and may lower your pension accordingly. The more you hold in cash, the larger the reduction.
The distinction between regular and advance payments is critical. Many information pages, including some government summaries, do not make this clear enough.
Anyone considering an advance payment should get specific advice before applying. For the full analysis, read our guide on how a reverse mortgage affects your age pension. To understand the broader mechanics first, see how reverse mortgages work.
HEAS vs private reverse mortgage at a glance
HEAS offers a lower rate but limited flexibility. A private reverse mortgage costs more but gives you lump sums and lines of credit. The right choice depends on what you need the money for and how you want to access it. HEAS applications go through Services Australia, and Stryve does not process them. What you get from a consultation with Stryve is a genuine comparison across 40+ lenders, so you apply for the right product before committing. Read the full [HEAS vs private reverse mortgage](/blog/heas-vs-private-reverse-mortgage) breakdown.
| Services | HEAS (Government) | Private Reverse Mortgage |
|---|---|---|
| Interest rate: 3.95% p.a. | ||
| Interest rate: 8.5% to 9.3% p.a. | ||
| Fortnightly payments available | ||
| Lump sum or line of credit available | ||
| No negative equity guarantee | ||
| Apply through Services Australia | ||
| Apply through a broker with 40+ lenders |
How to apply for the home equity access scheme
The process has three stages. Stryve helps with the first one, and Services Australia handles the rest.
Decide whether HEAS is right for you
This is where a free consultation with Stryve adds value. You get a comparison of the australian home equity access scheme against private reverse mortgage options across 40+ lenders, so you apply for the product that fits your situation. Stryve is paid by lenders, not by you, and the commission on each product is disclosed upfront.
Gather your documents
You will need proof of identity, property ownership details, and information about your current pension or income. Services Australia provides a full checklist on their website. If you have had a consultation with Stryve, your broker can help you confirm what is needed before you submit.
Apply through Services Australia
You submit your home equity access scheme centrelink application online through myGov or in person at a Services Australia office. Stryve does not process HEAS applications, but can help you prepare. You can stop or restart payments at any time with no exit penalties, and the no negative equity guarantee protects your estate throughout the life of the loan.
Frequently asked questions
Not sure if HEAS is right for you?
You now understand how HEAS works. The next step is finding out whether it is the best option for your specific situation. A free consultation with Stryve compares HEAS with private reverse mortgage options so you can make the right call, with no obligation and a clear comparison of costs before you decide.
Book a free consultation with Stryve