Home Equity Access Scheme by Centrelink in 2025: If you’re an older Australian looking to improve your retirement income without selling your home, the Home Equity Access Scheme (HEAS) by Centrelink in 2025 could be the financial lifeline you’ve been waiting for. This government-backed initiative allows eligible seniors to tap into the value of their property while continuing to live in it. For retirees who want to maintain independence and live comfortably, the HEAS offers a reliable and flexible source of income.
Think of it like unlocking the treasure chest inside your home. You don’t need to downsize, move out, or sacrifice homeownership. Instead, you’re converting part of your property’s value into income—with a secure, low-interest loan that’s backed by the federal government. It’s a win-win for seniors who want to age in place and still have access to cash.
Previously known as the Pension Loans Scheme, the HEAS provides non-taxable, low-interest loans that use your real estate as collateral. Whether you’re receiving a full or part pension—or no pension at all—this scheme opens a financial door for thousands of Australians aged 67 and older. It offers a practical solution that aligns with the increasing cost of living, healthcare needs, and lifestyle aspirations of modern retirees.
Home Equity Access Scheme by Centrelink in 2025
| Feature | Details |
|---|---|
| Eligibility Age | Age Pension age or older (currently 67 years) |
| Interest Rate (2025) | 3.95% per annum (compounded fortnightly) |
| Maximum Loan Rate | Up to 150% of your maximum pension rate |
| Repayment Options | Voluntary repayments anytime or repaid from estate upon death |
| Payment Types | Fortnightly income, lump sum (up to 2/year), or both |
| Property Requirement | Must own Australian real estate with adequate insurance |
| Official Website | Services Australia – HEAS |
The Home Equity Access Scheme by Centrelink in 2025 provides a reliable, government-supported way to access your home’s value without the emotional and logistical burden of selling. Whether you want more money for medical needs, home improvements, travel, or just peace of mind, the HEAS offers a tailored solution to help you enjoy retirement on your terms.
Before applying, speak with Centrelink’s Financial Information Service or a trusted financial adviser. They can help you weigh your options and create a plan that balances comfort today with security for tomorrow.
What Is the Home Equity Access Scheme (HEAS)?
The Home Equity Access Scheme is a voluntary, reverse mortgage-style loan available to seniors in Australia. It allows eligible individuals to receive regular payments from Centrelink using the equity in their homes as security. The program is designed to increase financial security and provide flexibility without requiring people to sell or rent out their property.
One of the most important aspects of the HEAS is that it’s non-taxable and does not affect Age Pension entitlements in most cases. It also comes with the No Negative Equity Guarantee, which ensures that borrowers (or their estates) will never owe more than the market value of their home at the time of sale.
This scheme is ideal for retirees who:
- Own their home outright or have substantial equity.
- Need extra income for living expenses, healthcare, or personal goals.
- Wish to remain in their homes while accessing financial resources.
It’s a practical way to reduce financial stress, especially during times of inflation or unexpected life events.
Why Consider the HEAS in 2025?
With inflation on the rise and living costs putting more pressure on fixed incomes, many retirees are facing financial strain. The HEAS is particularly beneficial in 2025 because of its flexible payment options, low-interest rate, and improved application process through the myGov portal.
Older Australians often find themselves in the paradox of being “asset rich but income poor.” They may own valuable real estate but lack sufficient cash flow to cover everyday needs. The HEAS addresses this issue by converting property equity into usable income while allowing the homeowner to retain ownership and residency.
What Can You Use the Money For?
- Paying for in-home aged care services
- Renovating or modifying your home for safety and comfort
- Covering travel, hobbies, or lifestyle costs
- Supporting grandchildren’s education or helping family members
- Reducing debt or covering emergency expenses
Real-Life Example:
Margaret, 72, lives in Sydney and owns a home worth $800,000. Despite this, she only receives a part Age Pension. To boost her income, she applies for the HEAS and gets an additional $400 per fortnight. Later, she takes a $10,000 lump sum to pay for cataract surgery and home safety modifications. She continues living independently in her home and chooses to make small voluntary repayments to control the loan balance.
Her children are grateful that she has a solution that doesn’t require selling the family home, and she feels empowered knowing she can access funds when needed.
Who Can Apply for the HEAS?
To qualify for the Home Equity Access Scheme in 2025, you must:
- Be of Age Pension age (67 years old as of 2025).
- Either receive or be eligible for an Age Pension, Disability Support Pension, Carer Payment, or certain DVA pensions.
- Own real estate in Australia, including your principal home or an investment property.
- Ensure the property has adequate insurance coverage.
- Be free from bankruptcy or personal insolvency agreements.
You don’t have to be a current Centrelink customer, but having a myGov account will make the process much easier.
Even high-asset seniors who don’t qualify for the Age Pension due to income or asset limits can still access the HEAS, provided they meet the age and property requirements.
For more information, use the official HEAS eligibility calculator to explore your potential benefits.
How Much Can You Get?
As of 2025, you can borrow up to 150% of the maximum fortnightly Age Pension amount. That includes both singles and couples:
- Singles: Up to approximately $1,604 per fortnight
- Couples (combined): Up to approximately $2,421 per fortnight
Your actual loan amount will depend on:
- The value and equity of your property
- Your age and your partner’s age (if applicable)
- Any existing debts secured against your property
- The total amount of equity you choose to access
Lump Sum Option:
You can request up to two lump sums every 26 fortnights, capped at 50% of your annual Age Pension entitlement. These lump sums can be used for larger expenses like home renovations, surgeries, or paying off outstanding debts.
Example Calculation:
John is a single retiree eligible for the full Age Pension of $1,069.20. Through the HEAS, he increases this to $1,604 every two weeks, gaining an additional $13,890 annually. He also requests a lump sum of $12,000 to cover house maintenance and travel expenses. This strategy gives him more flexibility and a better quality of life.
How Does Interest Work?
The HEAS uses a compound interest rate of 3.95%, calculated fortnightly. This means the interest is added to the loan balance every two weeks, and over time, the amount owed grows unless you make voluntary repayments.
You are not required to make regular repayments. The loan is typically repaid:
- When the home is sold
- When the last surviving borrower passes away
- Or via voluntary payments at any time
Thanks to the No Negative Equity Guarantee, if the loan balance ever exceeds the home’s sale price, the government absorbs the difference. This protects your estate and ensures your family won’t inherit debt.
How to Apply for HEAS: Home Equity Access Scheme by Centrelink in 2025
Step 1: Gather Documents
Before applying, prepare:
- Personal identification documents
- Details of your property ownership
- Proof of income and assets (if applicable)
- Insurance documentation
Step 2: Start Your Application
You can apply:
- Online via myGov linked to Centrelink
- By calling 132 300
- Or visiting your nearest Centrelink office
Step 3: Undergo Assessment
Centrelink will:
- Confirm your eligibility
- Arrange a professional property valuation
- Determine your payment options based on your needs and goals
Step 4: Choose Payment Preferences
Decide how you want to receive funds:
- Fortnightly payments only
- One or two lump sums
- Or a combination of both
Step 5: Begin Receiving Payments
Payments are deposited directly into your bank account. You can modify your payment preferences later as circumstances change.
Pros and Cons of the Home Equity Access Scheme
Pros:
- Stay in your home while accessing equity
- Government-backed with a low interest rate
- Flexible structure: fortnightly, lump sums, or both
- Non-taxable payments
- No regular repayments required
- No Negative Equity Guarantee protects your estate
- Suitable for pensioners and non-pensioners alike
Cons:
- Interest compounds over time, increasing the loan balance
- Decreases the value of your estate over time
- Property must be insured and well maintained
- Application process requires documentation and patience
- Limited to Australian real estate only
New Centrelink Rates for April 2025 Are In; Here’s What You Need to Know
$890 Centrelink Relief Is Coming – Here’s Who Qualifies and When!
Centrelink Family Tax Benefits – How Much Will You Receive in March 2025?
FAQs About Home Equity Access Scheme by Centrelink in 2025
Can I use the HEAS if I don’t get the Age Pension?
Yes, provided you meet the age and property ownership criteria. Many non-pensioners use HEAS to supplement their income.
Do I have to pay taxes on HEAS payments?
No, HEAS payments are entirely non-taxable.
Can I repay the loan early?
Yes, voluntary repayments can be made anytime with no penalties. This can help reduce interest accumulation.
What if I move into aged care?
HEAS may continue depending on your property status and needs. Centrelink will reassess your situation.
How will it affect my family?
The HEAS loan is repaid from the sale of your property or your estate. While it may reduce inheritance, it allows you to live comfortably and securely in your final years.
