Home equity conversion agreement

Assessment of income

A home equity conversion (HEC) agreement is not income.


  • 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, Income exempt from assessment - specifically approved, Income exempt from assessment - s 8(11) exempt lump sums

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