More older Australians are facing financial pressure — and they’re looking for ways to unlock the value of their homes to meet rising expenses or fund urgent needs. One increasingly popular option is the Federal Government’s Home Equity Access Scheme (HEAS), which allows seniors to receive regular payments or lump sums by using their home as security.
But while the HEAS offers a low-interest solution, many retirees seem to be discovering that time is not on their side.
Massive Wait List For Centrelink Home Equity Access Scheme
According to Services Australia, more than 16,000 HEAS applications are currently in the system, reflecting a significant surge in demand. That’s not a bad thing — in fact, it’s a sign that many seniors are proactively seeking financial solutions that let them age with dignity and independence.
Former Centrelink financial information officer and current financial planner Annette Sinclair reports that while some HEAS applications are processed quickly, many have been stuck in limbo for two months or more. In some cases, delays stretch even longer, with rejections due to small issues like missing documents or overlooked home insurance renewals.
These delays are especially painful when seniors are accessing HEAS funds to cover emergencies, like replacing a car or travelling to care for an ill loved one. “The delays in processing just add to the stress,” Sinclair says.
According to National Seniors and anecdotal feedback from Age Pensioners who have tried to contact Centrelink, even phone waiting times can exceed 30 minutes.
[ ALSO READ: ‘Government Reverse Mortgage’ booms in 2024: Why Home Equity Access Scheme (HEAS) is so popular ]
Real Story: How long a HEAS application can take
Take the case of Mary*, a 75-year-old single homeowner who recently came to Seniors First looking for urgent financial relief.
Mary owned a brand new home and had no superannuation, only $5,000 in savings, and significant debt — including $30,000 bank loan and another $30,000 across credit cards. She needed help fast.
Initially, she applied for the HEAS through Centrelink back in January. But after weeks turned into months with no response, and mounting stress over unpaid bills, Mary began looking elsewhere.
Eventually, she returned to Seniors First — where she had previously made enquiries — and asked for help securing a $100,000 lump sum and a $50,000 line of credit. Her goal? To consolidate debt and create some breathing room for future expenses.
Given the urgency of her situation, the commercial Reverse Mortgage was the only viable solution. We were able to move quickly, guiding Mary through the process with empathy, urgency, and care. Within weeks, she was on her way to financial stability.
Mary’s story is not uncommon — and it highlights why speed matters.
Note: “Mary” is not her real name. Her story is based on a real Seniors First client. Details have been changed to protect her privacy.
The ‘Government’s Reverse Mortgage’: Low-Cost but Complex
HEAS is often referred to as the ‘Government’s Reverse Mortgage’. It allows Australians aged 67 and over to access up to 150% of the Age Pension, either through fortnightly payments or two lump sums per year. At its current 3.95% interest rate, it’s a more affordable borrowing option compared to commercial Reverse Mortgages.
But it seems affordability comes at the cost of time and bureaucracy.
HEAS applications are complex. They require valuations, third-party documentation, and often involve several rounds of correspondence. General Manager of Services Australia, Hank Jongen, has acknowledged the delays and says more staff are being trained to address the backlog. Still, for those in financial distress, that doesn’t help much at the moment.
[ ALSO READ: Centrelink Home Equity Access Scheme (HEAS) vs Reverse Mortgage Loans ]
When Speed Matters, Wait Times Are Important
For many seniors, waiting two to three months — or even longer — for funds can be a major problem. Whether it’s needing a new roof after a storm, paying off mounting credit card bills, or covering the rising cost of medical care, the need for cash is often urgent.
This is where a commercial Reverse Mortgage can offer a practical alternative.
At Seniors First, we understand the urgency. Our Reverse Mortgage clients can typically access their funds in a matter of weeks — not months. While the interest rates are higher than HEAS, the flexibility and speed of access can make a significant difference when time is of the essence.
We’ve helped hundreds of retirees gain faster access to their home equity to:
- Fund urgent medical procedures
- Pay off existing debts
- Support family members
- Renovate their homes for accessibility
- Or simply boost their cashflow during rising living costs
HEAS vs Reverse Mortgage: It’s Not Either/Or
It’s important to remember that HEAS and commercial Reverse Mortgages aren’t competitors — they’re options. The growing number of HEAS applicants signals a clear need: older Australians are seeking more ways to access their wealth without selling the home they love.
The HEAS may be ideal for seniors who:
- Can wait several months for processing
- Only need a limited amount of money each year
- Prefer the government-administered route at a lower interest rate
Meanwhile, a commercial Reverse Mortgage may suit those who:
- Need access to cash quickly
- Want to borrow a larger lump sum than HEAS allows
- Want to use the funds more flexibly
In many cases, our clients first consider HEAS but come to us after realising their needs are more urgent — or their applications have stalled. We take a compassionate and personalised approach, helping clients understand all their options before making a decision.
Looking Ahead: Seniors Deserve More Support
The growing interest in HEAS shows us something bigger: Australia’s seniors need more robust financial tools to thrive in retirement. The system isn’t broken — but it’s under pressure. And while we applaud the government’s efforts to train more staff and reduce processing delays, we also believe that seniors shouldn’t have to experience unreasonably long delays for access to cash via home equity release loans, or schemes.
At Seniors First, our mission is simple — to help Australian retirees unlock the wealth in their homes, on their terms. Whether through a commercial Reverse Mortgage or simply by providing information, we’re here to support you with clarity, care, and urgency.
Want to learn more about Reverse Mortgage? Find out more about how to use a Reverse Mortgage for debt consolidation or download your FREE Reverse Mortgage GUIDE.
Ready to Apply? You can now check your eligibility online or call Seniors First on 1300 745 745.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.
Typical Govt BS
Hi FORGOT one wonders at all those that voted Labor. Did they in fact did not have grandparents or retired parents and or did know of the problems of retired old folk.
Now from the Web.
Australia: 2,4 Millon retired folk, and according to demographic stats. Total Population 26,974,026 by mid-2025.
But QLD is 5.,01 million of which 3.738,087 Registered Voters
But as of 2022 we had 130,000 retired folk in Queensland.
Do the sums but if the 130 Thou had been shown that Labors policy was rubbish for us why did we not vote Liberal.
And it goes with out saying the 3.7 Mil voters did not believe Liberals policy
Sure we got Henry Pike in but look at the overall picture… we have no punch in parliament.
All good and well for Mary, but i am sure that’s not the whole story, yes its important no know how did she get to her debt.
Perhaps its more important that having equity in a home that retired folk can buy in a secure retirement village close to the hospital (affordable modular homes assembled on a concrete slab in 30 days and finished off in another 30 days ) $140 to $180 thou. but what with government that does not give damm we should perhaps turn to Clive Palmer or Twiggy or the, Malcolm Turncoat and other wealthy Aussies were are they on wonders…
What a shocking stuff-up! It seems the government bureaucracy is holding onto its funds with tight fists as with the Disability Support Pension scheme!
If your property is more than 10 acres. HEAS was my only option
Hi Marsia, I’m not familiar with your situation. That may have been the outcome in your case but it’s not always correct. Some Reverse Mortgage lenders will take on properties that are larger than 10 hectares, but they may scale back the amount they will lend a bit. If the property is a working farm or a very large rural property then it may be difficult to get finance from a Reverse MOrtgage lender (HEAS maybe the only option). Every case is different, and often as a broker we are surprised by what’s possible. It’s always best to ask in advance to see where you stand. Regards, DM
Am looking seriously at this. Interest is really low compared to similar equity plans. A no brainer for me. As you drift into old age a couple of things set me back with going ahead at the moment. 1. My house is large and I don’t care about the size so much because I don’t mind pottering inside but my yard is too big for me. 2. Mobility may be the reason I have to move in the future and I may put myself out of the housing market because I’ve spent too much equity. 3. If worst comes to worst and I need care in an aged care home for more support again I may not have enough equity if I spend it. Lots to think about. I know it is becoming super expensive to get into aged care and I also know that there are changes to costing this July? This worries me because if I don’t get my decision right it may impact my family.
Hi Rhonda, thanks for your comment. Whether using the Home Equity Access Scheme or a Reverse Mortgage to release equity for cash, the best approach generally is to draw any funds gradually over time (where possible). This will minimise interest charges and help preserve more home equity for yourself (and family). Many people are surprised by how modest the Reverse Mortgage cost is when done this way, especially compared to the subsequent gains in home value due to subsequent capital growth. Regarding the Aged Care changes, yes there is some anxiety about that in the community. We will publish an article on this soon to better inform older Australians. Best regards, DM
For starters, how about no stamp duty for seniors downsizing. I am unwilling,after a lifetime of paying taxes, to give any government department a large piece of my retirement funds, which the sale of my family home will be, simply to pay stamp duty on a smaller home. We are a forgotten bunch, I think, they think, all Boomers are rich enough to survive. We are not.
Hi Geoff, thanks for the comment. I agree, a waiver of stamp duty for downsizers seems to make a lot of sense. It will save older homeowners money and will encourage more to downsize, which is good for the housing market supply and affordbility. Regards, DM
This is dreadful that Seniors have this long wait. We are below the poverty line and are under immense pressure with the cost of living!!
Hi Cate, I agree and the Department has apologised. Not making any excuses for them, but it seems the surge in interest has taken them by surprise. Hopefully they can add additional resources and get through the backlog soon. regards, DM
If the labour Government both State and Federal, weren’t so greedy with their reckless spending, and also wrongfully taxing hard working mum and dad property investors, perhaps things would be different!