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

Lesley W.

10:09 08 Mar 26

We were very happy with the speedy and professional service from Seniors First. They helped us navigate all the options available and sorted out the paper work, making it a simple operation to find and apply for the most suitable reverse mortgage for our needs. Highly recommend!

barry T.

22:45 24 Feb 26

Understanding, deciding, facilitating and processing an application for a reverse mortgage is not a simple process, however having a Broker who works closely with you step by step is an absolute must have. We choose Seniors First based on peer and industry reviews coupled with the explanatory telecasts they provided explaining what was involved. Having decided to explore further we linked up with our Broker, Angela Giokaris via a lengthy phone discussion. Throughout the following weeks as the application process progressed we were confident that we were in good hands. Angela remained in contact every step of the way, openly ensuring we understood the pros and cons of a reverse mortgage and facilitated every step of the journey. Importantly, there were a couple of conditions from Heartland, our chosen bank, that we had issues with. Angela negotiated with Heartland on our behalf and secured the conditions we were chasing. We found Angela to be highly professional, very knowledgeable of the reverse mortgage product and banking generally. Importantly also, friendly, patient, considerate of our needs, thorough in detail and overall an absolute pleasure to work with. We are very happy with the end result and being able to convert our asset value to a cash value and opening the door to the rest of our lives. We would wholeheartedly recommend Seniors First, and in particular Angela to anyone who is considering going down this track. Barry.

Helena Van D.

02:08 20 Feb 26

I have engaged with Palka from Seniors First for my second Reverse Mortgage application (I have refinanced for an increased amount).
Palka has been wonderful to work with to make the application process smooth and streamlined going out of her way to make herself available to me at any hour of the day. I highly recommend Seniors First and Palka for any financial service.

Sue S.

03:20 17 Feb 26

Angela was incredibly helpful and supportive in all facets of arranging my reverse mortgage. Her knowledge and abilility to share information at an understandable and concise level was brilliant. Angela made the whole process easy and pain free! Her ongoing support and understanding of an emotionally difficult situation was much appreciated.

Bobby Y.

08:57 16 Feb 26

I found the consultant from Senior first Richard Chapman, was extremely helpful and also very knowledgeable regarding reverse mortgages. He was always available to assist with any of out questions and or concerns. We found this process very smooth and seamless. My wife and I had many questions during this process, which were always handled with patience and understanding. I would recommend Senior First for anyone thinking about a reverse mortgage they make it easy.
Thanks guys.
Bobby Yarbrough

Gina J.

06:58 02 Feb 26

Seema was very professional explaining everything thoroughly and she kept in contact with us throughout the whole process of our Reverse Mortgage. We would definitely recommend her. Thank you for making it happen for us Seema we are now able to do our renovations
Jason & Gina

Ian C.

00:56 02 Feb 26

I have just recently re-negotiated my mortgage with Seniors First. The whole process was made all the easier with Adam Oakley's assistance… always just a phone call away- if not an immediate answer he always called back. A great help - awesome service from Adam - thank you.

Peter de D.

06:16 30 Jan 26

Angela was incredibly helpful and meticulous, always ensuring that we fully understood the implications of our decisions. She was always available whenever we needed clarification, consistently attentive and caring throughout the process. In addition, her reassuring voice gave us confidence and peace of mind.

John J.

23:14 27 Jan 26

I was extremely impressed with Palka. She went above and beyond in providing excellent service. She even answered questions after hours and was always very helpful, getting our mortgage through in the shortest time frame possible. Well done Palka. !

Alan S.

21:48 20 Jan 26

I recently used the services of Seniors First to help me navigate the complex side of reverse mortgage. I found Seniors First to be very knowledgeable and were able to provide me with all the information I needed to make an informed decision. They allowed me the time to considered my options, and there was no pressure to make a decision until I was ready. Pulka provided excellent service. I would highly recommend these guys if you are considering a reverse mortgage.

trevor G.

00:47 20 Jan 26

After reading a lot of online information regarding a reverse mortgage we contacted Seniors First. Richard Chapman was in touch shortly after. He came to our house and spent a couple of hours explaining the process in detail and answered any questions we had. Richard was excellent from start to finish and we always felt comfortable going through the process with him.
Highly recommend this broker.

Josie S.

02:02 09 Jan 26

Seniors First provided plenty of information on the concept of reverse mortgages, also referring us to the government website, for calculators showing scenarios of how the loan and house value would progress. Richard Chapman answered all our quesions in a clear, easily-understandable way and guided us through the process, to ensure that we and our children fully understood how reverse mortgages operate. With Richard's experience we were able to find a lender that suited the kind of loan we would need. We could see that the reverse mortgage would allow us to remain in our own home, and have funds available if needed later for aged care, without selling our home of 25 years and moving away. All in all, a very satisfactory experience with Richard and Seniors First.
Gavin and Josie Swallow

mark T.

01:31 30 Dec 25

I am very happy to recommend Seniors First Reverse Mortgage Brokers, especially Palka as she has been very polite and efficient in all aspects of this process. Always ready to explain thoroughly any questions or doubts I may have had and always with a friendly /no trouble response. Cannot recommend these folk enough,

Cheryl M.

01:38 27 Dec 25

Negotiating a Reverse Mortgage with Adam Oakley was considerably easier than we expected.
Adam was quick to allay our hesitance in dealing with an interstate broker and subsequent technological challenges including biometric ID.
Adam provided sound advice on the product best suited to our circumstances and maintained regular contact with us ensuring we were comfortable with the process and updating us on the progress of our application.
We researched reverse mortgages before committing and were impressed with Seniors Firsts webinars, FAQs and online information.
We look forward to maintaining contact with Seniors First and Adam in forthcoming years in reviewing our loan to ensure that it meets our future requirements.

Ian Y.

02:16 25 Dec 25

I did quite a bit of research on reverse mortgages and also watched at least 6 webinars on line before contacting Seniors First. I was put in touch with one of their brokers (Palka Kumar). She was very professional and knowledgeable about the whole process of setting up the reverse mortgage. I live in Tasmania but this was not a problem and in a matter of weeks everything was approved - I had the ideal criteria for this product and my wife and I are extremely pleased with the entire way the business was conducted. Seniors First know what they are doing and we thank you for all your assistance.

*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

Senior's 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.