Media Release | 9th March 2021Pension Boost Says 10% of HEAS Applications Come from Children of Retirees

Pension Boost has written reverse mortgages in every state in Australia and compiled data from over 500 approved Home Equity Access Scheme (HEAS), previously known as the Pension Loans Scheme (PLS) applications.

Pension Boost found that the average age at application for the HEAS was 73 years old and nearly 10% of loans were to self-funded retirees. Furthermore, almost half of the applicants had existing mortgages in retirement and 10% of initial requests came, not from the retirees themselves, but from their children.

Breakdown of HEAS application states

Location Percentage of total loans
NSW 25%
Victoria 25%
Qld 25%
SA 12%
WA 7%
Tasmania 5%
ACT & NT 1%

Pension Boost statistics from 500+ approved HEAS applications

  • Applicants were 58% couples and 42% singles (25% female, 17% male)
  • Applicants were 91% pensioners and 9% self-funded retirees
  • Applicants with existing mortgages were 46% with an average mortgage LVR of 28%
  • Applicants average property value $648,000 - median $500,000
  • Applicants home average net equity is $584,000 - median $447,000 - ranging from $200,000 to $5m

Paul Rogan, Founder and CEO of Pension Boost – which acts as an agent for retirees seeking to access the Government-run Home Equity Access Scheme reverse mortgage – believes that self-funded retirees could account for up to 20% of applications by 2025 – given the RBA's view on low interest rates for at least the next 3 years.

Paul stated, "Self-funded retirees are facing tough times when they depend, in large, on term deposits and cash rates. They know ultra-low interest rates are here for years and other sources of secure regular income are needed. Self-funded retirees are astounded when they realise that an extra income of up to $55,000p/a is possible from a HEAS reverse mortgage.”

Paul went on to say, "Having loans and enquiries coming in from every state has been heartening. Those retirees wanting to keep their house and who are not well-resourced with superannuation/savings are getting more comfortable with the concept of drawing down on the family home. It is also pleasing to see an increasing level of enquiry from the children of retirees concerned at the quality of life their parents are enduring on just the age pension”.

Want to learn more about Home Equity Access Scheme? Try our online HEAS Calculator to find out for yourself today.