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

Robert K.

20:12 08 May 26

Seema was extremely helpful and explain the process with us every step of the way.
Anyone thinking of a Reverse Mortgage to use Seema from Seniors First would find it advantageous to do.

Paul V.

07:30 08 May 26

Thank you Seema

Bruce C.

02:00 08 May 26

Hi Angela

Thank you for all the help that you provided in this matter.

Your service was exemplary. You guided us in what could be a complicated and stressful process at our stage of life. Your assistance relieved us of those pressures.

We would recommend your service to anybody.

Thank you

Bruce & Judith

Colin B.

06:23 06 May 26

totally friendly and helpful through the whole process, thank you Angela

Karen J.

04:58 06 May 26

What initially felt like a daunting process, was made seamless and easy. My broker Palka ensured that I was well informed at every step of the application process and was always readily available to respond to my questions. I feel excited to be able to move forward with my plans now.

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!

David B.

22:22 07 Mar 26

I was very happy with Seniors First to organize my affairs. Seema was a nice person to deal with and great at getting my application approved, she persisted with my lack of Technology and sending documents. Her experience and knowledge will guarantee success.

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.

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

Ray and Carolyn D.

00:35 09 Dec 25

We were/are clients of Palka Kumar. We were impressed with her friendly nature and boundless knowledge of the industry. We had a number of Tele-conferences with her as she guided us through the process and let us know from the outset that she was with us the whole way through to conclusion. Palka was always available to answer any questions and kept us informed as the process went through the various stages. We have nothing but praise and appreciation for Palkas commitment to her clients. She always made us feel assured and relaxed about a sometimes daunting process. Outstanding.

*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.