What is the Home Equity Access Scheme (HEAS)?

The Home Equity Access Scheme is an Australian Government loan administered by Services Australia. To qualify, you must receive or be eligible for a qualifying pension, such as the Age Pension, Carer Payment or Disability Support Pension, and meet other requirements. You may still qualify if your pension payment rate is $0 because of the income or assets tests.

HEAS applications can be made online through a Centrelink account linked to myGov or by completing the relevant Services Australia form. If approved, you can use Australian real estate as security and receive the loan as fortnightly payments, an advance payment or a combination of both. Combined pension and loan payments are subject to limits, while advances are capped at 50% of the maximum annual rate of your qualifying pension within a 26-fortnight period.

How does a reverse mortgage work?

A reverse mortgage is a loan secured against your property that lets you access some of your home equity without selling. Unlike a standard mortgage, regular principal and interest repayments aren't generally required, with interest instead able to be added to the loan balance.

Inviva's home equity release loan is a type of reverse mortgage available to eligible homeowners from age 55. Inviva currently offers loans from $50,000 up to $3 million, with more available by consultation, subject to lending criteria.

Funds can be accessed as a lump sum, regular income, line of credit or a combination of these options, with interest charged only on amounts drawn.

Home Equity Access Scheme vs reverse mortgage vs home reversion: what's the difference?

The differences between HEAS and reverse mortgage products extend beyond who provides the money.

Home reversion adds another model:

*Subject to eligibility, property value and applicable LVR limits.

**Rates current at time of writing and subject to change.

Inviva's variable rate is considerably higher than HEAS's rate. The trade-off is that Inviva provides broader drawdown options and potentially much greater access to capital than HEAS's pension-linked payment structure.

When might HEAS make sense?

When comparing Centrelink HEAS vs reverse mortgages, HEAS may suit eligible homeowners who:

• Want to supplement their retirement income rather than access a large amount upfront
• Prioritise a lower interest rate
• Also want to remain in their home (similar to a reverse mortgage)
• Value the protection of a no negative equity guarantee, like a reverse mortgage

However, fortnightly and advance payment limits can restrict how much you access at once. An advance, for example, is limited to 50% of the maximum annual rate of your qualifying pension within a 26-fortnight period.

When could an Inviva loan offer more flexibility?

An Inviva home equity release loan may suit eligible homeowners who:

• Are 55 or older, including those who don't qualify for HEAS
• Need access to a larger amount of equity
• Want a lump sum, regular income, line of credit or a combination
• Prefer to pay interest only on funds actually drawn
• Want the convenience of a digital application process

Inviva currently offers eligible borrowers $50,000 to $3 million, with more available by consultation, subject to factors including age and property value. Its online application can be completed in as little as 20 minutes, although approval and settlement times vary.

Which home equity option could suit your needs?

There is no single option that suits every homeowner, and you can even consider both if the conditions are right. HEAS may appeal if you're eligible, want supplementary income and prioritise a lower interest rate. Inviva can assist you with both and provide greater flexibility if you're 55 or over and need a larger amount or more choice over how you access it.

If you're considering an Inviva loan, use the Home Equity Calculator to explore how much equity you may be able to access. The Reverse Mortgage Calculator can also help illustrate how your loan balance and remaining equity could change over time.

Consider the costs, impact on your future home equity and your longer-term needs before making a decision. Talk to our Lending Specialist to learn more.