Top up your pension
No negative equity guarantee
HEAS funds received
Low interest rate
How the Home Equity Access Scheme works
The Home Equity Access Scheme is a voluntary non-taxable loan from the Australian Government. Under the scheme, the government uses the equity in a person’s home to pay them this fortnightly payment. The government recovers the loan and interest from their estate.
The maximum amount available via the Home Equity Access Scheme is 150% of the maximum pension rate. However, a retiree can choose to withdraw a smaller amount, can stop or start payments at any time, and can pay back the loan at any time.
The government charges a compound interest of 3.95% on the loan amount (from 1 January 2022).
Importantly, Home Equity Access Scheme payments do not count towards the pension income test or affect the aged care means test. Amounts received from a Home Equity Access Scheme loan are also non-taxable.
The Home Equity Access Scheme was extended to everyone of pension age from 1 July 2019. This included an increase in the allowable income to 150% of the Age Pension. We also called for a lowering of the Home Equity Access Scheme interest rate. On 1 January 2020, it fell from 5.25% to 4.5% per annum. On 15 December 2021, it was announced that the interest rate would drop from 4.5% to 3.95% per annum from 1 January 2022 - a reward for our strong and consistent campaigning.
Some of the ways Household Capital's Pension Boost service assists seniors includes:
• Helping you decide whether the HEAS may be of benefit for your financial circumstances by using the Pension Boost Calculator.
• Removing the hassle of dealing with Centrelink/DVA by acting as an ‘agent’ and assisting with your application.
• Continuously monitoring your cash flow and HEA loan status to maintain control over their home's net equity and ensure financial stability.
Speak with one of Household Capital's Pension Boost retirement specialists for a 15 minute no obligation call on 1300 699 624.
Or book a time that suits you to ask questions and discuss your needs