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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

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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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Rated 4.9 stars on

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

Deborah Collett

Brenda Kendall
14:11 16 May 25
Thanks very much to Adam Oakley who helped us though the process of choosing which bank would be our best option for our reverse mortgage. I had done quite a bit of research before choosing a broker to help us though this. We even watched a seminar that Adam had participated in. The brokers all know the rules and regulations, banking and government stuff, that is involved to make sure that we knew what the mortgage meant to our finances and what paperwork we had to supply and when. Luckily we have had a couple of businesses over the last 15 years and had a good idea of some of the processes so we were able to complete all the paperwork fairly quickly and send it to Adam. Much to our surprise the whole process only took about 5 weeks from when Adam first replied to my request for information and when we got settlement on our mortgage. Thank you very much to Adam and everyone at Seniors First in the background that might have helped to make this so easy for us.
Elizabeth O'Regan
04:38 15 May 25
Angela Giokaris facilitated our reverse mortgage with Seniors First. She was extremely helpful, having a great knowledge of the products and went the extra mile to ensure we both understood the various options which helped us decide on the most suitable option for our situation. She was always available to answer any queries we had. We have no hesitation in recommending her to other prospective clients.
Vicki Fraser
04:08 05 May 25
Thank you to Angela, her support was invaluable. She helped guide us through the process in a very professional, friendly and efficient manner. Her help was greatly appreciated, we couldn't have done it without her. Nothing was too much trouble.
Margaret Dalos
09:04 30 Apr 25
The experience I had with Seniors First and in particular Dean Hukin was first class.Dean who I dealt with to attain my Reverse Mortgage was the most friendly courteous and knowledgeable person and he is an absolute credit to Seniors First.His knowledge and excellent PR skills were wonderful and nothing was too much trouble and he was always available to answer any questions I asked if him.I would certainly recommend Seniors First and in particular Dean Hukin to anyone considering a Reverse Mortgage.
Charles Dearling
06:57 29 Apr 25
When I started the Reverse Mortgage process it was with some trepidation. In the end I had a superb broker - Adam Oakley. He was extremely helpful, reassuring, and gave excellent advise, as well as putting up with my questions, and putting me at ease. Now its finalized, I'm very happy with the result. Would recommend Adam and Seniors First to anyone. Many thanks Adam for all the hard work.
Christine Walker
23:09 28 Apr 25
Andrew at Seniors First did an amazing job setting up a Reverse Mortgage loan for me and my family. Due to my complicated family structure the setting up process wasn’t easy. Andrew with his considerable expertise and diplomacy overcame all obstacles to obtain a very favourable result.I am happy that through this loan I’ve been able to lend a helping hand financially to my family.I recommend with confidence Seniors First for anyone wishing to obtain a Reverse Mortgage loan.
Stephen Hansen
10:13 26 Apr 25
I would like to thank Angela at Seniors First for helping me with my reverse mortgage application. The process was extremely easy because of all the help and advice that Angela passed onto me. I would recommend Seniors First to anyone thinking of getting a reverse mortgage in the future. Regards Stephen Hansen.
Gillian Rogerson
05:24 24 Apr 25
Based on my experience of working with Andrew Cate of Seniors First, I can highly recommend him. He is professional in his approach, knowledgeable and works hard to get the best possible outcome. He is always courteous, and I am very pleased with the outcome achieved with him.
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.

*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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