The Home Equity Access Scheme (HEAS) has undergone major updates in 2025, giving Australian pensioners more flexibility, higher borrowing limits, and new options to access their home equity. These improvements aim to support older Australians who want to boost their income without selling their home.
Let’s break down the latest changes, key benefits, and how you can qualify.
What is the HEAS?
The HEAS is a government-backed loan program that lets eligible Australians aged 67 and over borrow against the equity in their home. Payments are made either as regular fortnightly amounts or lump sums, and the loan is repaid later—usually from the sale of the property.
What’s New in 2025?
The 2025 updates are designed to expand accessibility and provide better support. Here are the key changes:
- Higher Loan Limits: You can now borrow up to 150% of the maximum Age Pension rate. That’s a significant increase from the previous 100%, allowing eligible individuals to access more funds when needed.
- Lump Sum Option Expanded: Borrowers can now request two lump sum advances every 26 fortnights (one year). Each lump sum can be up to 50% of the maximum annual pension rate.
- Fixed Low Interest Rate: The interest remains low and competitive at 3.95% per annum, compounded fortnightly.
- No Negative Equity Guarantee: You and your estate won’t owe more than the value of your home, even if the loan grows beyond that.
Eligibility Criteria in 2025
To benefit from the updated HEAS, you must meet these basic requirements:
- Be Age Pension age (67 years or older)
- Receive or qualify for a government payment like the Age Pension, Carer Payment, or Disability Support Pension
- Own property in Australia (including your home, farm, or investment property)
- Have sufficient equity and insurance on the property
- Not be bankrupt or under a debt agreement
HEAS 2025 Summary
| Feature | Details |
|---|---|
| Maximum Loan Rate | Up to 150% of maximum pension entitlement |
| Interest Rate | 3.95% per annum, compounded fortnightly |
| Payment Options | Fortnightly income, two lump sums per 26 fortnights |
| Property Ownership Required | Yes – must be owned and insured |
| Loan Repayment | Voluntary anytime or from estate after death |
| No Negative Equity Guarantee | Yes – debt won’t exceed market value of home |
Benefits of the 2025 HEAS
- Access More Money: The increased loan limit allows you to cover unexpected expenses, travel, or home improvements.
- Stay in Your Home: Continue living in your property while enjoying extra income.
- Flexible Repayments: Repay anytime with no penalties.
- Safe for Families: The no negative equity guarantee protects your estate.
How to Apply
Applying for the HEAS is simple and can be done online or through Centrelink. The process includes a property valuation, eligibility checks, and choosing your preferred payment method (fortnightly, lump sum, or both).
The 2025 HEAS changes bring more freedom and opportunity for Australian seniors to manage their finances. With higher loan limits, flexible payment options, and built-in protections, it’s an excellent solution for those wanting to unlock the value of their home while enjoying a comfortable retirement. If you’re eligible, now is the perfect time to explore how the HEAS can support your financial goals.
FAQs
Can I receive both HEAS and Age Pension together?
Yes, the HEAS can be used to supplement your Age Pension without affecting your eligibility.
Will this loan affect my assets test?
No, the HEAS loan is not counted as income or an asset, so it does not affect the Age Pension means test.
Can couples apply jointly?
Yes, couples can apply together and combine their entitlements to increase the amount available.