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Government Home Equity Access Scheme (HEAS) vs Reverse Mortgage Loans

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Unlock Funds with the Home Equity Access Scheme

Formerly known as Pension Loan Scheme or PLS, The Home Equity Access Scheme, or HEAS, is a government-backed loan scheme that offers older Australians a financial safety net. It is often referred to as ‘the government Reverse Mortgage’.

Whilst it has elements in common with Reverse Mortgage loans such as compounding interest, it is actually a loan of pension entitlements, and as such is not a regulated credit product.

It aims to help those who are receiving Age Pension by offering a loan of further entitlements, in the way of fortnightly additional payments (or small lump sums). This income stream is generated by borrowing against the equity of their home.

Unlike traditional mortgages, the loan’s repayment is often deferred until the home is sold or the borrower passes away.

Benefits of the ‘Government Reverse Mortgage’ (HEAS)?

One of the biggest benefits of HEAS is its security and simplicity. As a government-backed home equity release scheme, it arguably offers greater ease of use and stability to borrowers compared to some private sector options.

Below are other benefits of HEAS:

  • No Tax on equity drawdowns:
    One of the standout perks of the HEAS is that it allows borrowers to increase their cash flow without worrying about taxes. These home equity drawdowns feel like tax-free ‘income’ and are a significant advantage for pensioners who want to boost their finances.
  • Keep Your Home:
    With the HEAS, borrowers continue to own their homes and live in them. This feature offers a sense of security and comfort, particularly critical during the golden years of retirement.
  • Borrowing with Boundaries:
    The HEAS comes with a No Negative Equity Guarantee, which places a cap on the amount you can borrow. This protective measure discourages over-borrowing and safeguards borrowers from potential financial turmoil down the road.

See here: https://www.servicesaustralia.gov.au/home-equity-access-scheme

interest rate reverse mortgage

Reverse Mortgages vs. Government HEAS: Which Is Right for You?

If you're considering a government-backed loan like the Home Equity Access Scheme (HEAS), it's important to know the key differences between HEAS and a Reverse Mortgage.

Home Equity Access Scheme (HEAS)

  • Approval Time: 2 to 3 months
  • Loan Amount: Capped at $13,350 for singles, $20,850 for couples
  • Flexibility: Limited options for receiving funds (fortnightly payments, small lump sums)
  • Eligibility: Must be of Age Pension age and meet strict government criteria
  • Access to Funds After HEAS: Takes up to 3 months to close the HEAS loan
  • Government Regulation: Not regulated under credit law but offers protections like the No Negative Equity Guarantee.
  • Interest Rate: Lower interest rate

Reverse Mortgage

  • Approval Time: 5 to 7 days
  • Loan Amount: Higher loan amounts available
  • Flexibility: Flexible—lump sum, regular payments, or both
  • Eligibility: For homeowners, typically 60+ years of age
  • Access to Funds After HEAS: Funds available faster once HEAS is closed
  • Government Regulation: Regulated under the National Consumer Credit Protection (NCCP) code
  • Interest Rate: Potentially higher interest rates compared to HEAS
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When a Reverse Mortgage May Be the Better Option

When deciding between a Reverse Mortgage and the government's HEAS, it’s essential to consider which option better aligns with your financial needs and goals. Here are some important factors that may make Reverse Mortgages the more attractive choice:

  • Urgency of Funds:
    If you need access to funds quickly, Reverse Mortgages generally offer faster approval and disbursement times. While the HEAS can take up to 2-3 months for approval, private lenders tend to process Reverse Mortgage applications more swiftly, which is particularly helpful in urgent situations where time is a critical factor
  • Larger Loan Sizes:
    Reverse Mortgages allow for much larger loan amounts compared to the HEAS. The HEAS has strict limits on how much you can borrow, which may not be enough if you have substantial financial needs. On the other hand, Reverse Mortgages provide more flexibility, enabling you to access more of your home equity without the same level of restriction.
  • Cash Reserve Feature:
    One of the standout benefits of Reverse Mortgages is the 'cash reserve' feature, which is not available under the HEAS. This feature acts as a line of credit, allowing you to have equity set aside for future use without being charged interest until you actually withdraw the funds. It provides a higher level of flexibility and peace of mind, knowing that extra funds are available when needed without immediately increasing your loan balance.
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Interested in Reverse mortgage?

Answer a few short questions to find out if you qualify for a reverse mortgage.

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Rated 4.9 stars on

“Sincere thanks to Andrew and Seniors First .. the loan has been life changing.”

Deborah Collett

Jane Barron
02:12 16 Apr 25
I had made contact with Seniors First in 2023, In Feb 2025, Adam Oakley contacted me to find out if I was still interested in applying for a Reverse Mortgage, I confirmed this, but said I couldn't go ahead until I had confirmation from the builder, he then sent some necessary information, Adam continued to keep in touch. I finally got a quote from the builder and the process of applying for a Reverse Mortgage began. Adam was wonderful, as an elderly lady, I often found the legal jargon daunting, but Adam was always available to address my fears, nothing was too much bother. Finally it was time to sign the contracts etc, so much paper work. Once again Adam assured and explained everything and my fears disappeared. I now have the funds in the bank, and am ready and excited to start the new project in my house. I am so thankful to Adam for all his help, assurance and assistance.
Colin Thompson
06:02 11 Apr 25
I was lucky to have my broker Palka Kumar assigned to me for my Reverse Mortage loan. I found Palka to be extremely professional and extremely helpful in all the aspects of securing my loan. I highly recommend her to any future customers of Seniors First.
Doug Coombes
06:31 07 Apr 25
I had a first and second mortgage that I needed to discharge in order to arrange a reverse mortgage. Adam Oakley from Seniors First assisted me with the entire process. Thanks to Adam the transition went smoothly, and I was able to achieve my goals.
Jakes Rudoph
04:53 07 Apr 25
I had a First-Class experience with Seniors First thanks to Adam Oakley, my Broker: From the start of the process, he demonstrated knowledge and insight into my particular needs and throughout maintained an exceptional level of support and empathy. I have no hesitation in recommending Seniors First and in particular Adam Oakley for anyone considering a Reverse Mortgage.
Veronica Scannell
04:06 07 Apr 25
Seniors First provided a great service when I applied for my reverse mortgage.My advisor, Adam made the experience easy and was most helpfulAdams warmth and caring during the process was much appreciated.Ron WA.
L.E
23:43 03 Apr 25
Palka was fantastic and helped me through the process with great patience and understanding. She was very thorough and always helpful and a phone call away if I needed anything. Yes, it's possible to do this without a broker, but for me it was money very well spent as I would not have known about the options available or pitfalls to avoid. I was never pressured into anything, was given numerous options, and the process was explained in great detail. I definitely recommend Seniors First.
Nathan Russell
04:36 02 Apr 25
Our application was managed extremely well by Palka, our broker from Seniors First. Her insight and experience enabled my wife and I have confidence in the entire process. She led our interaction with Inviva, and with a very experience solicitor, allowing the process to arrive at a positive conclusion. Thank you again Palka.
Philip Cram
06:13 24 Mar 25
My wife and I wanted to establish a Line of Credit or Reverse Mortgage to consolidate our debt and a little more for our floating home repairs.We contacted 2 brokers who did not have products that we could use. But the second broker referred us to Angela Giokaris. Angela was so helpful , took time to explain everything to us and made sure we understood how the process works and our obligations...Seniors First have improved our life style considerably.
Ian Hawkins
23:17 17 Mar 25
Process was well communicated and Angela Giokaris assisted throughg the entire process ensuring it went smoothly and well planned. Angela was very attentive and informative making the process from initial discussion to settlement well supported providing little useful tips along the way. Highly recommended.
Peter Doak
21:15 16 Mar 25
A lengthy process but handled very professionally throughout.Was kept up to date and each step was explained and made very easy.Would highly recommend their services and Andrew was exceptional.
Johanne Slattery
11:55 06 Mar 25
Dealing with Bill James was a pleasant and efficient process. Bill assisted me above and beyond to achieve a successful outcome.I highly recommend dealing with him and benefiting from his knowledge of the market.
Brian Hughes
06:30 05 Mar 25
Recently I had the pleasure of takeing a reverse mortage out with Seniors First for the very first time. I found Seniors First to be more than helpful to go the extra mile to take the time to explain all the aspects of doing so with them. I had the major assistance of Broker Dean Hukins who I found to be a great represenative of Seniors First and would reconmend anyone comsidering taking a reverse mortage to try Seniors First .
Barb Owen
09:47 03 Mar 25
Linda Alexander
07:12 24 Feb 25
Andrew has surpassed all expectations. It was not easy for him however he came through with flying colours. I would recommend him to anyone that needs prompt help with expert information. We thank you.
Poo Guy
21:23 19 Feb 25
Our broker Adam Oakley was fantastic. He was always prompt to answer any questions we had. Which made the process so easy.

*Note: Seniors First is a licensed, finance broker specialising in Reverse Mortgage and equity release finance. It is not affiliated with Centrelink, or an agent for the Home Equity Access Scheme. The webinar is for informational purposes only to assist in the understanding of how commercially available Reverse Mortgages differ from the Home Equity Scheme, and the circumstances in which they might be a suitable choice.

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