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 are 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.
[ ALSO READ: ‘Government Reverse Mortgage’ booms in 2024: Why Home Equity Access Scheme (HEAS) is so popular ]
Real HEAS Story: When Waiting Wasn’t an Option
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, which typically range between 8% and 10% annually.
But 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 immediate.
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 wait when their needs are urgent.
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.