Applicants for Home Equity Access Scheme
Applicants usually fall into four groups:
- current part-rate pensioners,
- current maximum rate pensioners,
- persons whose pension claim was previously rejected under the income and assets tests, or
- persons who have lodged a Home Equity Access Scheme claim on the assumption that they would not be eligible for a pension.
If a person has not previously applied for a service pension or income support supplement, basic eligibility for such pension must be established for the person to participate in the scheme. There is no legal requirement for income and asset details to be collected for those non-pensioners who would not meet the means tests.
Eligibility for service pension and income support supplement
Chapter 3.1 Service Pension Eligibility
Chapter 3.2 Income Support Supplement (ISS) Eligibility
Participation in the scheme - current pensioners
Pensioners receiving a pension can use the scheme to top-up their pension payments to:
- 150% of the maximum pension rate; or
- any lesser rate they nominate; or
- up to two advance payments within a 12-month period up to a total value of 50% of the maximum annual rate of pension.
Participation in the scheme – non pensioners
Persons who do not receive pension due to the combined income/assets test, can use the scheme in a similar manner to obtain a substitute for pension payments.
Home Equity Access Scheme application form
The Home Equity Access Scheme Application form gives DVA the authority to collect information to establish whether or not a person meets the eligibility criteria for the Home Equity Access Scheme. The application form is a contract between DVA and the applicant and states:
- any property nominated for exclusion from the calculation of the amount of loan available,
- the interest rate that is to be charged on the loan,
- any nominated to be excluded from the value of secured assets available for calculation of the maximum loan amount,
- the charge against any of the person's property used as security for the loan,
- insurance details,
- confirmation they are no subject to any bankruptcy or personal insolvency agreements, and
- the rate of loan paid each fortnight.
Completing the Home Equity Access Scheme application form
Section 52ZD(1) VEA - Need to make a request to participate in the scheme
Section 52ZD(2) VEA - Who is required to sign request to participate in scheme
Section 52ZD(3) VEA - Form of request to participate in scheme
A person who wants to apply for the Home Equity Access Scheme must complete the Home Equity Access Scheme Application form. The applicant must sign the application form in order to agree to the terms of the loan. If only one member of a couple applies for a loan, both members must sign the application form even though only one member of the couple may be accessing the scheme. The contract is binding on both members of a couple.
Home Equity Access Scheme interviews
An interview is to be conducted in all cases to:
- ensure that the applicant is fully aware of all the terms and conditions associated with the Home Equity Access Scheme payments and the loan,
- negotiate any problems, and
- obtain the signed agreement of the applicant to the terms of the loan on both the application form and on any interview notes which record the explanation of the loan conditions to the person/s.