Centrelink ⁠Home Equity Access Scheme 2024: Check Eligibility and Amount

The Centrelink Home Equity Access Scheme (HEAS) is an Australian Government program designed to assist seniors in accessing their home equity to supplement their income without needing to sell or move out of their homes.

Flexible Financial Support for Seniors

Targeted at older Australians who may have significant property assets but limited cash flow, HEAS enables seniors to borrow against their home’s value to secure fortnightly payments, lump-sum payments, or a combination of both. Administered by Centrelink, this scheme provides flexible financial options similar to government-backed rent assistance. This initiative has been well-received as it provides a steady income source, helping seniors manage daily expenses or unexpected costs without sacrificing the security of their homes. By allowing senior homeowners to convert their property equity into an income stream, HEAS offers a tailored solution for those “asset-rich” but “cash-poor.”

Eligibility Criteria for Centrelink HEAS in 2024

To qualify for HEAS, applicants must meet the following criteria:

1. Age and Pension Requirements: Applicants or their partners must be at least 67 years old and eligible for an Age Pension or similar qualifying pension such as Disability Support Pension (DSP) or Carer Payment.
2. Residency and Ownership: Both applicants and their partners must be Australian residents, and they must own a residential property in Australia, which will be used as collateral.
3. Co-Ownership Conditions: In co-owned properties, all owners must agree to use the home as security for the HEAS loan.
4. Financial Standing: Applicants and co-owners must not be bankrupt or have declared personal insolvency.

By meeting these eligibility criteria, seniors can apply to receive additional income through their home’s equity without monthly repayments, as the loan accrues interest until the property is sold or the borrower passes away. This year’s interest rate for HEAS loans is set at 3.95% per annum, making it a cost-effective way for seniors to leverage their property’s value.

Centrelink HEAS Payment Options for 2024

The amount seniors can receive through HEAS depends on whether they are pension recipients and on their chosen payment method—either fortnightly payments, a lump sum, or a combination of both.

1. For Pension Recipients: The combined total of the pension and HEAS loan payment cannot exceed 150% of the maximum pension rate each fortnight. Any changes in the pension amount will automatically adjust the HEAS loan payments to ensure this cap is maintained.
2. For Non-Pension Recipients: Those not currently receiving a pension may still access HEAS, with payments set up to 150% of the maximum rate of the qualifying pension they would be eligible for. These qualifying pensions include DSP, Age Pension, and Carer Payment. Eligible individuals can estimate their payment amount by using the HEAS calculator on their myGov account.

A Reliable Financial Solution for Seniors

The Centrelink Home Equity Access Scheme offers Australian seniors a viable way to access a portion of their home’s equity without losing ownership, helping them maintain financial stability and quality of life. With its flexible payment options and manageable interest rate, HEAS supports seniors in meeting their income needs while protecting their property rights.