In this guide
The cost of aged care is rising, whether you’re looking at the market price of a room in residential care or the cost of receiving services at home.
In a user-pays system, there is an expectation that those who can afford it will make a greater contribution. This is particularly the case under the government’s new Support at Home Scheme. Yet just because you are assessed as being able to pay more doesn’t always mean the financial resources are readily available.
One measure aimed at helping people stretch their resources and stay at home is the Home Equity Access Scheme (HEAS).
What is the Home Equity Access Scheme?
The HEAS is a reverse mortgage-style loan, offered by the federal government and administered by Centrelink. It allows borrowers of pension age to turn equity in their home into a regular income stream or a lump sum payment.
Good to know
A reverse mortgage is like a home loan in reverse. You borrow money against the equity you have in your home. That is, the market value of your home less any mortgage debt.
Reverse mortgage borrowers pay interest but this is added to the loan amount, so regular repayments are not required. Importantly, you can stay in your home until it is sold, usually on your death.
Read more about how the Home Equity Access Scheme works.
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 homes.
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