Diana wants to know if her investment in a lifestyle village qualifies her for a government equity access program.
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Q. Diana
Can you please advise if the people who own their own retirement home in a lifestyle village are able to access the Home Equity Access Scheme.
A. The Home Equity Access Scheme (HEAS) – formerly the Pension Loans Scheme – allows senior Australians to supplement their retirement income by accessing the equity in their home through a non-taxable government loan.
It is available to Australians of Age Pension age who meet residency requirements and own real estate in Australia. It can be the home you live in, an investment property or property owned by a company or trust.
Centrelink may consider property in a retirement village as adequate security if:
- you or your partner’s name is on the freehold title for the property
- there isn’t a contract term that prevents or limits your ability to sell the property
- you or your partner’s estate control the distribution of the asset.
You must satisfy all of these factors.
The Department of Human Services has confirmed with YourLifeChoices that a retirement village unit owner’s ‘right to reside’ or the leasehold situation in an over-50s community does not constitute a real estate asset.
A HEAS loan is only available to eligible retirees who hold freehold title to their real estate property.
You are eligible for a HEAS loan if you meet the following conditions:
- you or your partner are of Age Pension age or older
- you get or are eligible for a qualifying pension
- you or your partner own real estate in Australia you can use as security for the loan
- you or your partner, or any co-owner of the property, aren’t bankrupt or subject to a personal insolvency agreement
- you have adequate and appropriate insurance that covers the real estate offered as security.
All HEAS loan inquiries are assessed by Centrelink when the application is submitted, so Centrelink will be able to confirm what is or what is not acceptable.
Do you own your retirement unit outright? Would you consider a HEAS loan? Why not share your thoughts in the comments section below?
Also read: How does Centrelink assess caravans?