4.3.8.10 Home equity conversion agreement
Assessment of income
A home equity conversion (HEC) agreement is not income.
Explanation:
- under SSAct section 8(4) and 8(5) the first $40,000 of a HEC loan is exempt from the income test, and
- under SSAct section 8(11) any amount in excess of $40,000 is exempt from the income test.
Act reference: SSAct section 8(4) Excluded amounts-home equity conversion (not member of a couple), section 8(5) Excluded amounts-home equity conversion (member of a couple), section 8(11) An amount received …
Policy reference: SS Guide 1.1.H.70 Home equity conversion agreement, 4.3.2.31 Income exempt from assessment - specifically approved, 4.3.2.35 Income exempt from assessment - s 8(11) exempt lump sums