Home Equity Access Scheme (HEAS)
My friend mentioned they’re using the Home Equity Access Scheme (HEAS) to help fund their retirement. What is it, and how much can I get from it?
The Home Equity Access Scheme (HEAS) is a government initiative that allows eligible older Australians to supple- ment their retirement income by unlocking equity in their home or other real estate. It provides a voluntary, non-tax- able loan through Services Australia, with the loan amount secured against the person’s property. You don’t need to be receiving the Age Pension to apply, but you must be of Age Pension age and meet residency requirements. The funds can be received as regular fortnightly payments, a lump sum, or a combination of both, and interest is charged on the loan and compounds over time.
The maximum you can receive under the scheme is currently up to 150% of the maximum Age Pension rate, including supplements. The loan is typically repaid when the property is sold or can be repaid earlier if preferred. Importantly, a No Negative Equity Guarantee applies, meaning you won’t owe more than the value of the property used to secure the loan. As of April 2025, the interest rate is 3.95% per annum, though this may change over time. You should speak to your financial adviser to help you navigate the appropriateness and suitability of using this scheme.
Conclusion
The Home Equity Access Scheme (HEAS) offers retirees a practical way to enhance income and enjoy greater financial freedom. However, it’s essential to understand its long-term implications before applying.
At Leading Advice, we help you evaluate whether HEAS fits your retirement strategy and explore all available options for a secure future.
Contact Leading Advice today to discuss how to make your home equity work for you — and enjoy a more comfortable retirement.
FAQs
What is the Home Equity Access Scheme (HEAS)?
The HEAS is a government program that lets eligible older Australians access part of their home’s equity as a loan to boost retirement income.
Who can apply for the HEAS?
You must be of Age Pension age, meet Australian residency requirements, and own real estate in Australia to qualify.
How much can I borrow under the HEAS?
You can receive up to 150% of the maximum Age Pension rate, with payments made fortnightly, as a lump sum, or both.
Is the Home Equity Access Scheme taxable?
No. HEAS payments are non-taxable and can be used freely to cover living expenses, medical costs, or other needs in retirement.