Home Equity Access Scheme

You and your partner may use this scheme to supplement your retirement income. Before 1 January 2022, the scheme was called the Pension Loans Scheme.

This scheme lets older Australians get a voluntary non-taxable fortnightly loan from us. You need to use Australian real estate as security for the loan. To help you decide whether to apply for the loan payment, you can use both of our calculators:

You can choose the amount of loan payment you get each fortnight. We don’t pay the loan amount as a lump sum.

You must repay all of these to us:

  • the loan amount
  • some legal costs
  • accrued interest.

You’ll have to pay interest on the loan. From 1 January 2022, the annual interest rate is 3.95%. This rate compounds each fortnight on the outstanding loan balance. The longer you take to repay the loan, the more interest will accumulate.

There are costs to start and exit the loan. The amount you need to pay depends on your circumstances. We work out the costs based on how many and the type of properties you use as security for the loan. For example if you use one property as security for your loan, you’ll have one set of costs. If you use 2 properties as security, you’ll have 2 sets of costs – one for each property.

You can make repayments at any time, but you don’t have to. You can instead wait and pay it in full when you sell the property. But remember, the longer you have the loan, the more interest you’ll need to pay.

You can ask us to stop your loan payments at any time.

Page last updated: 5 April 2022