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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

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
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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.
reverse mortgage better option

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Rated 4.9 stars on

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

Deborah Collett

Lesley Wilson profile picture
Lesley Wilson
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 Briggs profile picture
David Briggs
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 turner profile picture
barry turner
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 Yarbrough profile picture
Bobby Yarbrough
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 Dargavel profile picture
Ray and Carolyn Dargavel
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.
lois kean profile picture
lois kean
11:13 08 Jul 25
Thank you to Palka for all you have done to give advise and secure a Reverse Mortgage.
You have given me outstanding service, guidance and help. You made clear to me the advantages, disadvantages and outcomes of a Reverse Mortgage.
You reassured me about the right timing and steps to take in the whole process.
I couldn't be more grateful and very satisfied knowing that my home loan is paid and I have enough to live comfortably.
Pam Spekking profile picture
Pam Spekking
02:38 03 Jul 25
My experience with Adam Oakley at Seniors First was exceptional. He explained everything in detail to me and made me feel comfortable and confident with my choices. I would highly recommend both Adam and Seniors First to anyone considering a reverse mortgage.
Nina Wright profile picture
Nina Wright
00:52 29 Jun 25
Angela was outstanding in her dealings with us. She was extremely thorough, helped us work through our application, made sure we understood the whole process. She was with us all the way, maintaining regular contact. Angela made it a comfortable seamless experience.
Diane Vince profile picture
Diane Vince
06:33 19 Jun 25
I can’t speak highly enough of Seniors First Reverse Mortgage Brokers. From the moment I made contact with them regarding a possible application for a Reverse Mortgage
I felt extremely comfortable working through the process. There was no pressure to continue but I am extremely glad I decided to proceed.
Seniors First were very considerate and concerned that I completely understood the pros and cons of the decision I was making. I felt at ease discussing the very involved process through very friendly and supportive phone conversations and via many emails. I greatly appreciated how I was kept up to date with the applications progress. Contact about any concerns was always welcome.
I unreservedly recommend their thorough unquestionable service. I am amazed at how smooth the process was, especially as it resulted in a very positive outcome.
Thank you for your friendly, unbelievable guidance and support.
Suzzanne Poré profile picture
Suzzanne Poré
04:13 18 Jun 25
I don’t normally write reviews, it’s never that often that I come across great people, or companies as a whole. I just want to set a scene so to speak, because I know anyone reading this is in the same place I was in. The past few years have had some of the most challenging health issues, then chuck in a hip replacement on top. The last 12 months have been the most expensive. My home is literally crumbling down around me, I won’t list things, it will make your mind boggle.
I had heard about reverse mortgages a number of times over the past couple of years, very different from a standard mortgage. It made me a little nervous, but I did research. I rang a couple of brokers, what’s your email, if you have any questions, ring me back.
Adam Oakley from Seniors First, was the first one to truly speak to me. Answered all my weird questions, gave me so much information, and helped me all the way. Some critical information such as Centrelink, I checked up on. Adam was spot on with what he had told me. Do your own research, government web sites, brokers, and lenders so you can understand what is being explained. Taking on anything financial is a huge step, being guided (handheld, in my case) by Adam is a blessing.
Rob Perriott profile picture
Rob Perriott
01:30 17 Jun 25
We had an excellent experience dealing with Seniors First and their consultant Adam Oakley. The information provided to help us make a final decision was first class. Adam is very knowledgeable open and fast to respond. I highly recommend Seniors First.
Giovanna Burgess profile picture
Giovanna Burgess
02:32 13 Jun 25
I had a very positive experience with Seniors First when arranging my reverse mortgage.
The kindness and understanding shown by my broker made the entire process smooth and reassuring. He truly listened to my needs and worked hard to achieve the best possible outcome for my situation. I’m genuinely grateful for the support I received and would highly recommend Seniors First for anyone considering their financial options in later life.
Neil Carr profile picture
Neil Carr
05:08 09 Jun 25
Seniors first reverse mortgage definitely ticks all the boxes as a gold star product.
Richard Chapman explained very clearly from the outset how this works and held our hands throughout the whole process, even when it got a little tricky with an outstanding level of professionalism and patience i might add.
If you are reading this and are contemplating a reverse mortgage look no further call Richard Chapman at seniors first.....first.
Brenda Lindquist profile picture
Brenda Lindquist
05:47 27 May 25
Don't know what I would have done if it wasn't for Angela. She's really good at what shes does and she spooned fed me all the way to settlement. I have no hesitation in recommending Seniors First & especially Angela, where speaking with her was like speaking with a friend. Great girl & honestly she will be my first point of call should I have another adventure.
Geoff Lam profile picture
Geoff Lam
05:35 23 May 25
I'd like to sincerely thank Adam Oakley from Seniors First who'd help me secure my reverse mortgage with Inviva.Adam was very thorough and professional when guiding me through all the steps. Adam constantly created a lot of confidence and showed a personal interest and patience during his follow-up. I highly recommend Adam from Seniors First if you family or friends are contemplating a reverse mortgage. Thank you again Adam. Geoffrey Lam.

*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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