Using the Home Equity Access Scheme to fund aged care

It is most people’s preference to remain living as independently as possible, in their own home, for as long as possible. While the government-subsidised Home Care Package scheme is designed to help make this happen, the amount of money available doesn’t always cover the cost of services and equipment required.

One measure aimed at helping people to stretch their resources and stay at home is the Home Equity Access Scheme (HEAS), formerly known as the Pension Loan Scheme (PLS).

What is the Home Equity Access Scheme?

The Home Equity Access Scheme is a reverse mortgage-style loan, offered by the federal government and administered by Centrelink. It allows borrowers of Age Pension age to turn equity in their home into a regular income stream or lump sum payment.

From 1 July 2022 retirees have been able to take some of the equity released from their home as a small lump sum. The government has also brought the scheme in line with commercial reverse mortgages, with a no-negative-equity guarantee, ensuring borrowers can never end up owing more than the value of their home.

Those closest to the scheme see it as playing an important role in helping people age in their own home.