The Centrelink Home Equity Access Scheme 2024 offers older Australians a smart way to access home equity without selling their property. If you’re looking to supplement your retirement income without leaving your home, this government-backed scheme could be the solution.
What is the Home Equity Access Scheme (HEAS)?
The Home Equity Access Scheme (HEAS) is an Australian government program that allows eligible seniors to borrow against the value of their home. Previously known as the Pension Loans Scheme, HEAS provides tax-free, regular payments or a lump sum, giving retirees access to additional income while continuing to live in their own homes.
Key Benefit: You receive loan payments without having to sell or downsize your property.
Who is Eligible in 2024?
To qualify for the Centrelink Home Equity Access Scheme in 2024, you must meet the following criteria:
- Age: 65 years or older
- Residency: Australian citizen, permanent resident, or eligible New Zealand citizen residing in Australia for at least 10 years
- Homeownership: Must own real estate in Australia
- Living Status: Must reside in the property as a primary residence
- Loan Management: Must be capable of managing the loan independently or with legal support
No income or asset test is required for eligibility, making it more accessible than the traditional Age Pension.
How Much Can You Borrow?
The amount available under HEAS depends on:
- Your age
- Property value
- Relationship status (single/couple)
Typical payment range:
- Single person: Up to $1,500 per fortnight
- Couples: Up to $2,300 per fortnight
- Lump-sum option: May be available depending on equity and approval
The older you are, the more you can borrow, as the expected repayment term is shorter.
What is the Interest Rate in 2024?
- Fixed interest rate: 4.94% per annum (as of 2024)
- Compounded annually
- Reviewed every 6 months
While the rate is competitive, remember that the interest accumulates over time, increasing the total amount repayable.
When Do You Repay the Loan?
There are no monthly repayments during the life of the loan. Repayment is required only when:
- You sell the property
- You move into permanent residential care
- You pass away
Repayment typically comes from the proceeds of the property sale.
How Does HEAS Affect Your Pension?
- The loan does not count as income for Centrelink Age Pension eligibility
- But, the equity used may affect your asset test, possibly altering your pension payments
- Always speak to a Centrelink officer or financial advisor for personalised guidance
Pros of the Home Equity Access Scheme
- Access funds without selling your home
- Flexible payment options — fortnightly or lump sum
- No immediate repayment pressure
- Helps manage retirement expenses without extra loans
Risks to Consider
- Compounding interest may significantly increase the total owed
- Estate value may decrease, affecting your heirs’ inheritance
- If the housing market drops, you may owe more than your home is worth
It’s critical to evaluate the impact on estate planning and long-term goals before applying.
Comparing HEAS with Reverse Mortgages
| Feature | HEAS | Reverse Mortgage |
|---|---|---|
| Offered By | Australian Government | Private lenders |
| Repayment Time | After sale, care, or death | Similar terms |
| Interest Rate | Government-set (lower risk) | Market-based (may be higher) |
| Pension Impact | Limited effect | Can vary |
Pro Tips for Managing Your HEAS Loan
- Track your borrowings and interest accrual regularly
- Review property value periodically
- Involve a financial planner for estate and retirement planning
- Inform your family or power of attorney to avoid future confusion
Frequently Asked Questions
Q1. What is the Home Equity Access Scheme?
It’s a government program that lets seniors use the value of their home to get a loan as income without selling the property.
Q2. How much can I borrow through HEAS?
In 2024, singles can get up to $1,500/fortnight, and couples up to $2,300/fortnight, depending on age and property value.
Q3. Do I need to repay the loan monthly?
No. Repayment is only required when you sell the home, move into care, or after death.
Q4. Will the scheme affect my Age Pension?
The loan isn’t counted as income, but the equity used could affect your asset test and pension rate.
Q5. Is the HEAS better than a reverse mortgage?
HEAS is government-regulated and usually offers lower interest, but both options depend on personal financial goals.
As a finance news writer at sirfal.com, I specialize in breaking down complex economic trends, market updates, and investment strategies into clear, actionable insights. My mission is to empower readers with the knowledge needed to make informed financial decisions. Thank you for engaging with my articles; I hope they add value to your financial journey.