The Home Equity Access Scheme is a voluntary, non-taxable loan from the Australian Government for people of Age Pension age or older, secured against real estate they own in Australia. You can take it as fortnightly payments, an advance lump sum or both. The rate is 3.95% a year, compounding fortnightly. The loan is usually repaid when the property is sold.

Home Equity Access Scheme at a glance
Feature Detail
Run by Services Australia
Who People of Age Pension age or older who own Australian real estate
Paid as Fortnightly payments, advance lump sums or a combination
Interest rate 3.95% a year, compounding fortnightly
Protection A no negative equity guarantee
Tax The loan payments are not taxable

Who can use the Home Equity Access Scheme?

You need to be Age Pension age or older, or have a partner who is, and own real estate in Australia with enough equity to secure the loan. You do not have to be receiving a pension; Services Australia checks whether you qualify under the scheme’s rules. Its eligibility and borrowing calculators, available online and through a Centrelink account, give an estimate before you apply.

How do the payments work?

  • Fortnightly payments top up your income, alongside any pension you receive.
  • Advance payments are lump sums. There are limits on how much you can take as advances, and taking one reduces the fortnightly amount you can receive for a period afterwards.
  • A combination of both is allowed.

How much you can borrow in total depends on your age, the equity you set aside as security and whether you have a partner. Services Australia’s calculator gives the figure for your situation.

How much does it cost over time?

There are no repayments while you live in the home, but interest compounds every fortnight, so the balance grows faster than the amounts you take out.

A $50,000 balance left to compound at 3.95%
Years with no repayments Balance, about
0 $50,000
10 $74,200
20 $110,100

You also repay legal costs. You can make voluntary repayments at any time, which slows the growth.

What is the no negative equity guarantee?

It means you, or your estate, will not owe more than the value of the property used as security, as long as the scheme’s conditions are met. If the balance grows past the property’s value, the excess is not chased. The guarantee is part of the scheme’s terms set by Services Australia.

How does it compare with a reverse mortgage and other options?

Ways to turn home equity into income
Option How it works Main point to weigh
Home Equity Access Scheme Government loan, payments or lump sums, interest compounds 3.95%, with limits on lump sums
Reverse mortgage Private lender loan secured on your home, interest compounds Each lender sets its own rate, fees and limits
Ordinary home loan Borrow against the home with regular repayments Needs income to service it
Downsizing Sell and buy something cheaper Duty and moving costs, but no debt

The article on home loans for retirees covers ordinary loans and downsizing, and the home equity calculator shows how much equity you hold.

What happens when the property is sold?

The loan, interest and costs are repaid from the sale. If you sell and buy another home, you discuss the security with Services Australia. When a borrower dies, the loan is usually repaid from the estate. Talk it through with family early, because the balance affects what the estate receives.

Can a couple use the scheme?

Yes. Services Australia describes the scheme as one that you and your partner may use to supplement retirement income. Where only one partner is Age Pension age, the rules for the other partner’s situation apply, and the calculators handle couples separately from singles.

How do you apply?

  1. Run the eligibility and loan calculators, online or through your Centrelink account.
  2. Decide how much you want, and whether as fortnightly payments, lump sums or both.
  3. Apply to Services Australia, which assesses eligibility and the property you offer as security.
  4. Services Australia secures the loan against that property, and its legal costs are added to what you repay.
  5. Review the arrangement each year; you can change the fortnightly amount or stop it.

What should families ask before a parent signs up?

  • How large could the balance be in 10 or 20 years if nothing is repaid?
  • What happens if the home is sold to move into aged care?
  • How will the loan affect what the estate receives?
  • Would downsizing, or an ordinary loan with repayments, cost less overall?

Who should get advice before applying?

Anyone. The loan changes what you leave behind and can interact with other benefits and aged care decisions. Services Australia offers a free Financial Information Service, and a licensed financial adviser can look at the whole picture. A broker’s part is the comparison with an ordinary loan or a refinance, or with a line of credit for borrowers who still have income.

Questions people ask

What is the Home Equity Access Scheme interest rate?

3.95% a year, compounding fortnightly on the outstanding balance, as published by Services Australia.

Do I have to be on the Age Pension?

No. You need to be Age Pension age or older, or have a partner who is, and own Australian real estate. You do not need to be receiving a pension.

Can I take a lump sum?

Yes, as an advance payment, within the scheme’s limits. Taking one reduces the fortnightly payments available for a while afterwards.

Charles Touma compares the scheme with an ordinary loan, a refinance or downsizing finance, so you can see the cost of each before you decide. A free 30-minute call covers your equity and income. General information only, not financial or credit advice; the scheme is run by Services Australia, and a licensed financial adviser can advise on your retirement plans. Sources: Services Australia, Home Equity Access Scheme, checked 17 October 2026. The balance table is calculated at the published 3.95% rate, compounding fortnightly.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.