Retirement Strategy

5 Reasons to Consider the Home Equity Access Scheme

Mar 29, 2026 • 5 min read
5 Reasons to Consider the Home Equity Access Scheme

The Strategic Value: For Care & The Future

The Home Equity Access Scheme (HEAS) is often misunderstood as a simple "gap-filler" for people already on the Age Pension. The reality is far more powerful. It is a strategic modelling tool for Australian families to unlock liquidity without sacrificing the Family Home.

1. Minimal Setup Costs

Unlike private bank reverse mortgages, the HEAS has no application fees. You only pay for the cost of registering a legal charge (a caveat) on your property title. Depending on your state, this typically ranges between $100 and $500. The government generally covers the cost of valuing your home.

2. Low, Variable Interest & Protections

The interest rate is currently 3.95% p.a. (as of March 2026). Interest compounds fortnightly, but you are protected by a No Negative Equity Guarantee. This means you (or your estate) will never owe more than the market value of the property, providing absolute peace of mind for the next generation.

3. The "$0 Payment" Policy

Many families set up the facility and choose a payment amount of $0. This is one of the smartest strategies available. The application process takes several weeks, but having it sit "dormant" allows you to activate payments instantly via myGov in an emergency. It acts as a powerful insurance policy with no interest charged until you actually draw funds.

4. Protecting Your Equity ("Nominated Amount")

You do not have to offer 100% of your home's value as security. You can nominate a specific dollar amount to keep "off the table." This Nominated Amount protects an inheritance for your family or keeps equity available for future loans or aged care entries.

5. Independent of Your Pension Payment

Perhaps the biggest myth is that you need an Age Pension payment to qualify. In fact, you might be assessed to receive $0 in pension but still have full access to this scheme. If you have an investment property paying low yield, for example, you can borrow against it to safely fund your lifestyle without being forced to sell.

Aged Care Funding: The Hidden Multiplier

The scheme holds extremely high value in residential aged care strategies. It provides a reliable source of funds to cover daily care fees or unexpected medical costs down the track without forcing the immediate sale of the family home.

Final Assessment: Don't Guess, Model.

The math of the HEAS changes based on your age, property value, and existing income. Stop guessing and check your real position in the Later Life app today.

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[Source: Services Australia, 2025-26 FY]