Many retirees own a home worth far more than their savings. That can leave people feeling wealthy on paper but stretched week to week. The federal government’s Home Equity Access Scheme (often shortened to HEAS) is one way some people choose to bridge that gap without selling.
It isn’t widely advertised, but interest is growing. National Seniors Australia has reported that the number of people using the scheme has risen by around 300% since the pandemic.
Here’s what the scheme is, in general terms, and the questions worth asking before going further.
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What is it?
The Home Equity Access Scheme is a voluntary, non-taxable loan from the Australian Government. It’s secured against Australian real estate you own, which can be the home you live in. Services Australia runs the scheme.
Who can use it?
In general, it’s for people who have reached Age Pension age, or whose partner has, and who meet residency and other conditions. You don’t have to be receiving the Age Pension to apply. You do need to own suitable Australian real estate to use as security.
How is the money paid?
You can choose fortnightly payments to top up your income, lump-sum advances for bigger costs, or a mix of both, within the scheme’s limits. The total fortnightly amount, including any pension you receive, is capped at 150% of the maximum Age Pension rate.
What does it cost?
It’s a loan, so interest is charged. The rate is set by the government and compounds, which means the balance grows over time, and the longer the loan runs, the more interest builds up. Check the current rate on the Services Australia website.
Can you end up owing more than the home is worth?
The scheme has a no negative equity guarantee. In general terms, this limits how much can be recovered to the value of the property used as security. Services Australia explains exactly how it applies.
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When is it repaid?
You can repay some or all of the loan at any time. In general, it must be repaid if the property used as security is sold, and it’s usually recovered from the estate after death. An eligible partner may be able to continue in the scheme. Services Australia can explain how this applies to a couple.
How does it compare with a private reverse mortgage?
Banks and specialist lenders offer reverse mortgages, which work in a broadly similar way. Rates, fees, features and protections vary between lenders and the government scheme, so compare carefully and get independent advice.
Questions to ask before considering it
- How much would I need, and for how long?
- How would the balance grow over 5, 10 and 20 years?
- What would it mean for my partner, and for what we leave to family?
- Are there other ways to meet the same need, such as downsizing or budgeting changes?
- Have I talked it through with family and an independent financial adviser?
Where to from here
Launchup’s free calculator shows staying at home alongside the other main options, so you can see the bigger picture. For the scheme itself, go to Services Australia, which has its own calculators. Moneysmart.gov.au explains reverse mortgages and has a reverse mortgage calculator. Get independent financial advice before deciding anything.
General information only. It doesn’t consider your personal circumstances and isn’t legal, financial or credit advice. Rules vary by state and change over time. Get independent legal and financial advice before making any decision. Launchup is not a lender, law firm or financial adviser. For the Home Equity Access Scheme, see servicesaustralia.gov.au. For other options, speak to a licensed lender or broker and an independent financial adviser.
Sources: Services Australia: Home Equity Access Scheme · DSS scheme factsheet · DVA policy on repayment after death · National Seniors Australia
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Home Equity Access Scheme or downsizing?
Both can turn part of your home's value into money for retirement, in different ways.
- Home Equity Access Scheme: you stay in your home and borrow against it. Interest compounds, so the debt grows over time, and it's usually repaid when the home is sold or from your estate.
- Downsizing: you sell and move somewhere cheaper. You pay selling and moving costs, and money you don't put into your next home counts towards the Age Pension tests. Read the Centrelink downsizing rules for pensioners.
- Staying put without a loan: no selling costs and no debt, but no extra cash either.
The free downsizing calculator puts staying put, buying smaller, a land lease community and a retirement village side by side. For the loan itself, use the Services Australia Home Equity Access Scheme calculators.
Last reviewed: 1 November 2026. Source: Services Australia: Home Equity Access Scheme.