The Centrelink Home Equity Access Scheme (HEAS) in 2024 provides Australian retirees with an opportunity to use the equity in their home to access more income safely. This government supported program allows elderly people to take equity release pension with a suitable and adaptable pattern and also moderate interest rate. Let me share with you important details about the HEAS: Who can apply for it, how to pay and what is special about this scholarship.
What is the Centrelink HEAS?
The HEAS is especially suitable to Australians who want to generate more income during the retirement age. Under this scheme, the retirees have the option of being paid up to 150% of the rate of the Age Pension whether in instalments or in periods of lump sums.
Eligibility Requirements
To qualify for the HEAS, retirees need to meet a few conditions:
- Age and Pension Status: Applicants need to be of Age Pension age and receiving or be entitled to a pension even if only at $0 because of assets.
- Property Ownership: It is mandatory that borrowers used their Australian houses as securities of loans they want to take when they are of retirement age.
- Financial Standing: An applicant cannot be a bankrupt or in personal insolvent and the property insured should be for not less than 90 percent of its value.
Payment Options
- Fortnightly Payments: The monthly annuity option allows retirees to receive it every month while the more frequent, every fortnight suits covering essential expenses.
- Advance Payments: Money available up to two times in 26 two-week periods; allow for covering large but isolated expenses such as repairing a home.
- Combination Payments: Weekly and advance payments are also made possible by blending the two pay frequencies.
Interest Rate and Repayment
For 2024, the HEAS interest rate is 3.95 % per annum, with the interest rate being compounded on a fortnightly basis,which is cheaper to ordinary commercial loans,i.e. There is no need for repayments made during the borrower’s lifetime and they are often found hidden in the property sale proceeds.
