Quick Access to Pension Loans Scheme

If you're an Age Pension recipient sitting on home equity but short on day-to-day income, you may have come across the Home Equity Access Scheme (HEAS) -  a voluntary government loan that lets eligible older Australians borrow against the value of their home. This can provide a large amount of funds and the interest rate is very low, currently 3.95%.
A quick note before you read on: the figures, rates and eligibility rules below are general information current as at the time of writing. HEAS is administered by Services Australia and the Department of Veterans' Affairs, and specific numbers can change. Nothing here is financial advice for a decision based on your own circumstances, speak with Services Australia or a licensed financial adviser.

What Is the Home Equity Access Scheme?

The Home Equity Access Scheme is a voluntary loan scheme run by the Australian Government that allows eligible Age Pension, age Australians to borrow money using equity in Australian real estate as security. It's sometimes still called by its older name, the Pension Loans Scheme, though HEAS is the current terminology used by Services Australia.Unlike a typical bank loan, HEAS doesn't require regular repayments while you're using it, the debt (plus interest) is generally recovered from your estate or when the secured property is sold, whichever comes first. This is broadly similar in structure to a private reverse mortgage, though HEAS is government-run and, at the time of writing, carries a lower interest rate than most commercial equivalents.

How the Scheme Works: Payments, Interest & Security

Eligible recipients can generally choose to receive their HEAS loan as:

• A fortnightly income-style payment (topping up or replacing a part or full pension), or
  

• Periodic lump sum advances (subject to annual caps), or

• A combination of both

Interest accrues on the outstanding balance and compounds over time meaning the amount owed can grow faster the longer the loan runs, particularly if you draw the maximum available each fortnight. The rate is reviewed periodically by government and can change, so it's worth checking the current rate directly with Services Australia before applying rather than relying on a figure you've seen elsewhere, including this page.
Because the loan is secured against real estate, you'll generally need to have sufficient equity in an Australian property, and the property is usually required to be adequately insured for the life of the loan.

Am I Eligible for the Home Equity Access Scheme?

Eligibility is set by Services Australia and the Department of Veterans' Affairs, and generally depends on:

• Being of Age Pension age (even if you're not receiving a full or part Age Pension)

• Meeting residency requirements

• Having real estate in Australia that can be offered as security

• The property having enough equity to support the loan amount you're seeking

Because eligibility rules and thresholds are updated from time to time, the most reliable way to check where you stand is via your Home Equity Eligibility status through Centrelink, or by reading the current criteria on the Services Australia Home Equity Access Scheme page.

How Much Could I Borrow?

The maximum amount available under HEAS is generally calculated as a percentage of the maximum Age Pension rate you could otherwise receive, adjusted for your age, and capped against the equity available in your property. In practice, this means two people of different ages or with different levels of home equity may be offered quite different maximum amounts.Because the calculation depends on personal circumstances (your age, relationship status, existing pension entitlement and property value), we'd avoid quoting a single "typical" figure it's genuinely worth using the government's own calculator or speaking with Services Australia to get a number that reflects your situation, rather than treating any example you read online as your likely outcome.

Need Cash Sooner?

HEAS applications and payments can take time to process, and it isn't designed for urgent, short-term cash needs. If you're a Centrelink recipient who needs a smaller amount sooner for something like a car repair, a medical bill, or a whitegoods replacement that's closer to what Cash Direct offers. You can see whether you may be eligible for one of our age pension loan options, explore other pensioner loan options, or use our small cash loan calculator to estimate what repayments on a smaller loan might look like.These are separate, short-term products from Cash Direct they're not a substitute for HEAS and won't affect your HEAS eligibility, but they may help bridge a gap while a HEAS application is being considered, or suit you better if you're not eligible for HEAS at all. It's also worth reviewing our guide to budgeting support for pensioners if ongoing budgeting rather than a one-off expense is the underlying issue.If you're also receiving other support, our page on other Centrelink benefits may be a useful next read.