Both let eligible homeowners access property equity without selling immediately. The Home Equity Access Scheme is a government loan with its own eligibility and payment limits; private reverse mortgages have lender-specific rates, fees and drawdown options. Compare their costs and suitability for your needs.
Question
What's the difference between a reverse mortgage and the Home Equity Access Scheme?
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Short answer
The detail
Both let eligible homeowners access property equity without selling immediately. The Home Equity Access Scheme is a government loan with its own eligibility and payment limits; private reverse mortgages have lender-specific rates, fees and drawdown options. Compare their costs and suitability for your needs.
The Australian Government’s Home Equity Access Scheme, or HEAS, allows eligible people of Age Pension age to receive a voluntary non-taxable loan secured against Australian real estate.
As at July 2026, the HEAS interest rate is 3.95% a year, compounded fortnightly. The scheme also includes a no-negative-equity guarantee. Payments may be received fortnightly, as a limited advance payment, or through a combination of both.
People who do not currently receive an Age Pension may still qualify if they meet the scheme’s requirements. Combined pension and HEAS loan payments may be available up to 150% of the maximum qualifying pension rate.
HEAS has limitations. It may not provide a large enough lump sum for major renovations, debt repayment or another substantial expense. Advance payments are capped and may reduce the regular loan payments available for the following 26 fortnights.
An advance secured against the principal home is exempt from the assets test for the first 90 days, but it is an assessable financial asset after that period if it remains unspent. Deeming may also apply.
HEAS should usually be investigated before choosing a private reverse mortgage, particularly where the objective is to supplement regular retirement income.
Read more: Are Reverse Mortgages a Scam? We ask Reddit users.
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