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

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

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

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

Check eligibility

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.

Interested in Reverse mortgage?

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

Check eligibility

Rated 4.9 stars on

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

Deborah Collett

Don R.

2 days ago

Jayden explained options and usual procedures and responded to my questions in a reasonable time. He was never annoyed by how long it took me to understand the process. He chased up delays usually resolving the delay or explaining the reason for the delay.

Madeline M.

3 days ago

Seema has always been very helpful and available to answer any questions we have had. Thank you Seema.

Marion D B.

3 days ago

Thank you Palka, you made a truly daunting experience exceptionally easy. The care taken to ensure this was the right choice (and the options offered) were beyond expectations. I'm truly thankful for your thoughtfulness and guidance

Sharon K.

6 days ago

Exceptional experience with Seniors First. Would definitely recommend the service. Fast and efficient.

David L.

6 days ago

We were helped every step of the way, to make the process easier for us. It took longer than I expected, but we realised that it is not like taking out a normal home loan. Great service indeed and very professional. Would highly recommend. Regards Dave.

Marie O.

7 days ago

We used Andrew at Seniors First to arrange a reverse mortgage to cover Mum's move into an Aged Care Facility. He was super helpful, professional and friendly from the very start, ensuring that not only did he understand our particular needs but that Mum, myself and my siblings had a full understanding of what we were agreeing to. He was incredibly responsive at every stage and made what is quite a complex process a lot easier to navigate. I'd recommend him without reservation to anyone exploring the option of a reverse mortgage.

Rose F.

1 week ago

I am very pleased and relieved to have my reverse mortgage now in place, after thinking about it for several years. Like many "oldies" I have been asset rich and cash poor for some time, but I love my house and didn't want to sell to finance living my best life, taking holidays, dining out etc. I was able to get a lump sum immediately on completion of the loan to pay off debts, with access to a much larger sum in the future, as and when I need it for house repairs and maintenance, more holidays (!), medical expenses... I may never need most or all of it but the security of knowing it's there is wonderful. Andrew from Seniors First was terrific, ensuring I completely understood every step of the process and metaphorically holding my hand throughout. Thank you Andrew!

Mick G.

2 weeks ago

Both my wife and myself were Extremely pleased with the professional service we received from Seniors First Representative Ms Seema Baram . We can highly recommend Seema to anyone looking for a Reverse Morgage . Regards Mick and Ally Guerin

stephen G.

2 weeks ago

We have just comeing into the last bit of my reverse mortgage. Trying to contact my broker, or anyone from first mortgage to fix a couple of hickups and the broker has not answered my frantic calls. All they say is to leave a voice message and some one will call you back . Still waiting !! Trying to sort out the problem with the the bank is also very trying. This process has now gone on for around 3 months now, so close and yet so far. No help from

Michelle P.

2 weeks ago

Palka has been incredibly helpful and supportive during the whole process of applying for the reverse mortgage. She explained everything very thoroughly and has been responsive to all our questions. We cannot recommend her highly enough. Thank you Palka 😍😍

Tina G.

3 weeks ago

Palka was very helpful, informative and supportive throughout the whole process. Would highly recommend her!

Jacqueline K.

3 weeks ago

I received outstanding service from Adam Oakley at Seniors First. With extensive experience in customer value creation, I do not say that lightly. Adam treated me with dignity and respect. He listened carefully, understood the outcomes I was seeking, and thoughtfully translated that understanding into a solution genuinely suited to my circumstances. His knowledge, sound judgement and professionalism inspired confidence throughout. It was an exceptional experience, in every respect, and I would recommend Adam and Seniors First without hesitation. Jacqueline Kelly

Beth M.

3 weeks ago

We recently used Seniors First to organise a Reverse Mortgage. Our agent was Cheryl Maclean who guided us through the whole process with absolute professionalism with the 'human touch' first & foremost. We would recommend both Seniors First & Cheryl Maclean if you are thinking of a Reverse Mortgage as it's a big decision to make & one that suited our circumstances.

Desley

4 weeks ago

Palka from Seniors First was extremely helpful and supportive through the entire process. She was helpful and able to explain any questions I had and supported me through the whole process. I would definitely recommend her services.

Peta R.

4 weeks ago

I was extremely pleased with all the help i received from Adam at Seniors First. He was patient and understanding with my questions. I would recommend him to my friends should they need to go down this path.

Mike “Magyarmeister.” R.

4 weeks ago

My experience with Seniors First has been exceptional. My dealings with my personal broker Palka Kumar have been and are excellent. Palka has been a wonderful person to deal with and has been extremely helpful in all aspects of the process. Thank you.

Sue T.

1 month ago

I am been blown away with all aspects of the experience with your company and the lovely and helpful staff

victor D.

1 month ago

Seema provided timely and useful consulting support throughout the setup process. She was a pleasure to work with.

Stephen B.

1 month ago

We would like to thank Cheryl for all her help and her excellent way of looking after every detail of the process. From start to the finish of the application she was amazing. Cannot thank her enough.

Judith T.

1 month ago

I would highly recommend Seniors First to anyone who is uncertain where to start in the reverse mortgage process. Their website is excellent. Adam Oakley made the application process so clear and precise. He was very knowledgeable and ever so patient in answering all my questions and explaining all the various options available. Thank you Adam for creating such a positive experience. My family and I are very happy with the outcome. Much appreciated…Judy

evelyn G.

1 month ago

From start to finish going through the whole process of the loan I found Cheryl Maclean has helped me greatly with every aspect of it she has always been accessible when ever I had a question that I was not sure of and it didn't matter what time it was so I would highly recommend Cheryl from Seniors First the place to go if you are thinking of a Reverse Mortgage Broker

*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.

Industry Awards & Recognition

Seniors First has developed a reputation as an award-winning Reverse Mortgage broker, and a trusted name among public policy organisations, the aged care industry, senior’s groups, older borrowers and their families.