Centrelink’s Home Equity Access Scheme 2025: As retirement approaches, many Australians look for ways to improve their financial comfort without sacrificing their home or lifestyle. One smart option is Centrelink’s Home Equity Access Scheme (HEAS) — a government initiative that allows eligible seniors to receive regular payments or lump sums using the equity in their real estate. This comprehensive guide covers everything you need to know about HEAS in 2025 — including benefits, payment options, eligibility, recent updates, and practical steps to apply.
Centrelink’s Home Equity Access Scheme 2025
The Centrelink Home Equity Access Scheme 2025 is a flexible, low-risk way for older Australians to increase their income in retirement without having to sell their home. With low-interest rates, repayment flexibility, and government backing, it’s a compelling option for those looking to enjoy their golden years with greater financial freedom. Before applying, it’s wise to consult a financial advisor or use the free Financial Information Service offered by Centrelink. Whether you’re fully retired or partially self-funded, the HEAS gives you more control, stability, and peace of mind.
| Feature | Details |
|---|---|
| Eligibility | Age Pension age or older, must own property in Australia, meet residency requirements, not be bankrupt or under personal insolvency agreement |
| Loan Amount | Up to 150% of maximum pension rate, depending on property value and borrower’s age |
| Interest Rate | 3.95% per annum, compounding fortnightly |
| Payment Options | Fortnightly, lump sum (up to 50% of pension in 26-fortnight period), or combination of both |
| Repayment | Voluntary anytime, or upon sale of property, death, or entry into aged care. No negative equity guarantee applies |
| Recent Update | March 2025 Cost-of-Living adjustment to pensions and one-time $5,000 Centrelink Cash Boost for eligible Australians |
| Application | Online via Services Australia, documents required: proof of identity, property details, etc. |
What Is the Home Equity Access Scheme?
The Home Equity Access Scheme (HEAS), formerly known as the Pension Loans Scheme, allows older Australians to access a non-taxable loan from the government using the equity in their homes. This loan can supplement their retirement income while allowing them to continue living in their home.
This means if you’re not getting enough from your pension or aren’t receiving one at all, HEAS may help bridge the gap.
Who Can Apply?
You’re eligible if you:
- Are of Age Pension age or older (currently 67 years old)
- Own real estate in Australia
- Are not bankrupt or under a personal insolvency agreement
- Meet residency requirements
Even if you’re not receiving a pension, you can still apply as long as you’re eligible for one or meet the criteria.
How Much Can You Get?
- The combined amount of HEAS and pension payments cannot exceed 150% of the full Age Pension.
- You can opt for:
- Fortnightly payments
- Lump sum advances (up to 50% of full pension over 26 fortnights)
- Or a combination of both
For example: If you’re eligible for the full Age Pension of $1,100 per fortnight, you could receive up to $1,650 total per fortnight through HEAS.
Interest Rate and Repayment
- The interest rate is 3.95% per annum, compounding fortnightly.
- No repayments are required while you’re receiving the loan, but you can choose to repay anytime without penalty.
- The loan (including accrued interest) is usually repaid:
- When you sell your property
- Move into long-term care
- Or through your estate after death
Good news: the no negative equity guarantee means you or your estate will never owe more than the value of your home when sold.
What’s New in 2025?
The HEAS remains largely unchanged in 2025, but there are two significant updates worth noting:
- Cost-of-Living Adjustments:
- Starting March 2025, the Age Pension has increased to help seniors manage inflation.
- $5,000 Centrelink Cash Boost:
- Eligible Australians will receive a one-time $5,000 payment to ease financial stress. You may receive this even if you’re accessing the HEAS.
Step-by-Step Guide to Apply for Centrelink’s Home Equity Access Scheme 2025
- Check Eligibility – Make sure you meet the requirements.
- Understand the Costs – Use the HEAS calculator on the Services Australia website to see how much you could get.
- Prepare Your Documents – Proof of ID, property ownership, and income details.
- Seek Advice – Talk to a financial planner or Centrelink Financial Information Service officer.
- Apply Online – Use your myGov account linked to Centrelink.
You can also apply in person at a Services Australia office.
Real-Life Example
Margaret, 73, from Perth owns her home but only receives a part Age Pension of $500/fortnight. Through HEAS, she applies to receive an additional $700/fortnight. Now, she enjoys a more comfortable lifestyle without selling her home. Margaret opts to repay the loan from her estate in the future.
Centrelink Age Pension Payment Schedule in March 2025 – Check Eligibility, Details
Centrelink Home Equity Access Scheme 2025: Check Eligibility & Application, Amount
Australia Centrelink Payments Schedule in March 2025: Check Amounts and Important Dates
FAQs About Centrelink’s Home Equity Access Scheme 2025
Q1: Do I lose ownership of my house if I join the HEAS?
No. You keep full ownership. The government simply places a legal charge (like a mortgage) on your property as security.
Q2: Can I repay the loan early?
Yes. Voluntary repayments are allowed at any time without penalty.
Q3: Is the loan taxable?
No. The HEAS payments are non-taxable income.
Q4: Can I apply if I’m not receiving any pension?
Yes. You just need to be eligible for a qualifying pension, not necessarily receiving it.
Q5: What if my partner and I jointly own the home?
You can apply jointly and both receive HEAS payments, depending on combined eligibility.
