Home Equity Access Scheme: How Much You Can Borrow Against Your Home in 2026

The Home Equity Access Scheme (HEAS) is a government-run reverse mortgage product administered by Services Australia. It used to be called the Pension Loans Scheme, and most people still know it by that name — it was renamed in 2022 to reflect that eligibility extends beyond pensioners. It lets older Australians borrow against the equity in their home without selling, and without making regular repayments. The loan accrues interest and is repaid from the sale of the home, typically when you move into aged care or when your estate is settled.

The key thing that makes HEAS different from commercial reverse mortgages is the interest rate. HEAS has a single, government-set rate that's currently much lower than anything on the commercial market. As at January 2026 the rate is 3.95% per annum, compounded fortnightly. Commercial reverse mortgages from banks and non-bank lenders typically charge 8% to 9.5%. Over a ten-year loan, that rate difference compounds into enormous savings.

You don't need to be receiving the Age Pension to use HEAS. You're eligible if you're of Age Pension age (currently 67) and you either receive a qualifying payment (Age Pension, Disability Support Pension, Carer Payment) or you would qualify except for the income or assets test. In practice this means self-funded retirees with significant home equity can also access the scheme.

The loan can be taken as a fortnightly income stream, a lump sum advance (up to two per year), or both. Most people use it to top up their pension to a comfortable living standard without drawing down their superannuation or selling the family home.

The maximum you can receive is calculated as a percentage of the maximum Age Pension rate, and the percentage depends on your age and whether you're single or in a couple. The older you are, the higher the percentage — because you have a shorter expected loan term and the scheme's risk is lower.

The basic formula for the fortnightly maximum is this:

Maximum fortnightly payment = (150% × max Age Pension) − your current pension

So you can top yourself up to 150% of the maximum pension using a combination of your actual pension and the HEAS loan payments. If you're already on the full pension, your HEAS top-up can bring your total fortnightly cash flow to 150% of the pension (approximately $1,724 per fortnight for a single homeowner as at March 2026, compared to the base pension of $1,149).

For lump sum advances, you can take up to 50% of the maximum annual pension rate as a single advance, up to twice per year. As at 2026 that's roughly $14,950 per advance, or $29,900 per year in lump sums.

The total loan balance (all advances plus accrued interest plus fortnightly payments) is capped at an age-adjusted percentage of your home equity. The cap rises each year you hold the loan. A 67-year-old might start with a cap around 15% of home value; by age 85 that rises to around 40%, and after age 90 it can exceed 50%. The loan can never exceed the home's sale value — if the loan balance would push through that ceiling, payments simply stop until the cap catches up through further indexation or until the home is sold.

Meet Bill and Jan. They're 72 and 70, married homeowners, with a combined assessable income that puts them on a part Age Pension of $1,200 per fortnight (combined, compared to the full couple rate of around $1,732 per fortnight in March 2026). Their home is worth $900,000 and owned outright. They're healthy but tight on cash each fortnight and want to travel while they still can.

They apply for HEAS with the goal of topping up to 150% of the maximum couple pension rate.

• Max couple pension (March 2026): ~$1,732 per fortnight
• 150% of max: $2,598 per fortnight
• Current part-pension: $1,200 per fortnight
• HEAS fortnightly top-up available: $2,598 − $1,200 = $1,398 per fortnight

They choose a more modest $800 per fortnight top-up instead, because that's what they actually need.

Loan growth over ten years (at 3.95% p.a. compounded fortnightly, assuming no additional lump sums):

Years	Total drawn	Balance with interest
1	$20,800	$21,220
5	$104,000	$115,040
10	$208,000	$254,740
15	$312,000	$426,430

After ten years, they've received $208,000 in tax-free top-ups (HEAS payments don't count as taxable income), and the loan balance stands at about $254,740 — roughly 28% of the home's current value. If the home has also appreciated to, say, $1.2 million by then, the loan is about 21% of the home's new value. When the home is eventually sold (or they move into aged care), the loan is repaid in full from the sale proceeds, and the balance goes to their estate.

Compare that to a commercial reverse mortgage at 8.5% per annum over the same period: the $208,000 drawn would have grown to roughly $327,000 in loan balance. HEAS saves them about $72,000 in interest over ten years on this example. That's a material difference for a scheme that costs nothing to set up.

HEAS vs commercial reverse mortgages — the head-to-head comparison.

Feature	HEAS (government)	Commercial reverse mortgage
Interest rate (2026)	3.95% p.a.	~8% to 9.5% p.a.
Setup fees	$0	$900 to $2,500
Ongoing fees	$0	$10 to $15 per month service fee, plus annual valuation
Lump sum available	Up to ~$29,900 per year (2 advances × 50% max pension)	Flexible — often $50,000 to $200,000+ upfront
Fortnightly income stream	Yes, up to 150% of max pension combined	Rare; most are lump sum
No negative equity guarantee	Yes (statutory)	Yes (since 2012, statutory)
Can refuse to accept new applicants	No — open to all eligible Australians	Yes — several major banks have exited
Taxable?	No	No

The commercial market has thinned out dramatically. Commonwealth Bank and Westpac both exited reverse mortgages several years ago, and only a handful of non-bank lenders (Heartland Finance, Household Capital) remain active. HEAS has effectively become the default option for most older Australians who want to tap their home equity without selling.

The trade-off is that HEAS doesn't offer huge upfront lump sums. If you need $100,000 all at once to renovate, pay medical bills, or help a child buy their first home, HEAS can only give you around $30,000 per year. For larger one-off needs a commercial product may still be the only option, despite the higher rate.

You apply through Services Australia — online via myGov, or using the paper form SA486. You'll need to provide proof of ownership of the home (title deed or council rate notice), a current valuation (Services Australia often accepts the council valuation), and evidence you meet the age and payment eligibility criteria. Processing takes 4 to 8 weeks in most cases.

A solicitor's involvement is not required for HEAS (unlike some commercial products), but you should get independent legal and financial advice before signing. The National Debt Helpline (1800 007 007) offers free financial counselling and can help you work through the implications for your estate and your beneficiaries.

Risks to think about:

• Less inheritance for your estate. The loan is repaid from the home sale first. If you've drawn heavily, your beneficiaries may receive substantially less than the home's gross value.
• Interest compounds. Even at 3.95%, compounding over 15+ years can materially shrink your equity. Model the balance at several time points before committing.
• Interest rate can change. HEAS rates are reset by the Minister from time to time. The current 3.95% is not locked in forever — it has risen in the past when commercial rates rose.
• Aged care transition. If you move into residential aged care, the loan must be repaid within 12 months (usually from the home sale). This interacts with aged care fees and the Refundable Accommodation Deposit in complex ways. Specialist advice is strongly recommended before taking the loan if aged care is likely within a 5-year window.
• Joint ownership. Both owners must agree and sign. If one partner dies, the loan can usually continue until the surviving partner moves or dies — the "tenancy for life" protection is built into the scheme.

The Home Equity Access Scheme is genuinely one of the most under-used government programs for older Australians. If you're asset-rich and cash-poor in retirement, own your home, and want to stay in it, the maths is usually compelling. Get advice, run the numbers out to 15 years, and make sure your beneficiaries understand the trade-off — then it becomes a straightforward decision.