Using your home to fund retirement: The Home Equity Access Scheme explained

For many retirees, their home is their most valuable asset –yet its value often remains untapped when it comes to generating income in retirement. The Home Equity Access Scheme (HEAS) offers a government-backed solution to help unlock some of this equity, providing greater financial flexibility without needing to sell your home.

What is the HEAS?

The HEAS is a voluntary loan program administered by Services Australia. It allows eligible Australians to receive regular, tax-free fortnightly payments –or lump sums –secured against their home or other Australian real estate. This loan can help supplement your retirement income, particularly if you’re not eligible for the full Age Pension.

How it works

Participants can access up to 150% of the maximum Age Pension rate. The actual loan amount depends on your age, the value of your property, and any existing pension entitlements. The current interest rate is 3.95% p.a., and repayments aren’t required until the home is sold, or the estate is finalised.

You can:

• Choose fortnightly payments or up to two lump sums per year
• Adjust or stop payments at any time
• Repay the loan partially or in full, voluntarily.

Who Can Apply?

You may be eligible if:

• You or your partner are 67 or older
• You own real estate in Australia to use as loan security
• You’re not bankrupt or in an insolvency agreement, and
• The property is insured and unencumbered (or has equity available).

Even if you’re self-funded and not receiving a pension, you may still qualify.

Why Consider the HEAS?

Benefits:

• Retain full ownership and occupancy of your home
• Improve retirement income without selling assets
• Peace of mind with a no negative equity guarantee.

Considerations:

• Interest compounds over time, reducing the value of your estate
• Loan repayments are triggered if you sell the property or upon death
• Using loan funds for investments or savings may impact Centrelink assessments.

Want to learn more?

Download our flyer:

• Understanding the Home Equity Access Scheme
• HEAS vs Reverse Mortgage: Smart Ways to Fund Your Retirement 
• Rising Home Care costs ahead – could your home help you stay at home?

Or contact Brendan O’Reilly at Peak Advice to explore how this scheme may fit into your retirement strategy.

We can assist you with navigating these options and helping you choose a solution that’s right for you.