Helping You Unlock the Value in Your Home for a More Comfortable Retirement
What Is a Reverse Mortgage?
A reverse mortgage is a type of home loan for older Australians (usually aged 60 and over) that lets you borrow money using the equity in your home—without needing to make repayments while you’re still living there.
It’s a way to unlock cash from your home to help cover living costs, medical bills, home improvements, or other expenses in retirement.
How Does It Work?
- You stay in your home and continue to own it.
- You can receive the funds as a lump sum, a regular income stream, a line of credit, or a combination.
- You don’t need to make repayments while living in the home, but interest is added to your loan, and this compounds over time.
- The loan is repaid when your home is sold, either when you move into care or after you pass away (by your estate).
How Much Can You Borrow?
- The amount depends on your age and the value of your home.
- As a rule, at age 60, you may be able to borrow around 15–20% of your home’s value.
- For each year over 60, the amount increases slightly—about 1% extra per year.
Things to Consider
- Interest compounds, meaning the longer you have the loan, the more you’ll owe.
- Your equity will reduce over time, which can affect how much you leave behind.
- You may be able to protect a portion of your home’s value to help pay for future care.
- Most reverse mortgages now include negative equity protection, so you can’t owe more than your home is worth.
Costs Involved
- Costs will vary by lender but typically include:
- Interest rates (usually higher than standard home loans)
- Establishment fees
- Ongoing service or valuation fees
- Your lender must provide projections showing how the loan will affect your home equity over time. Ask for a copy to take away and review with your financial adviser.
Is It Right for You?
A reverse mortgage might suit you if you:
- Want to stay in your home
- Need extra funds in retirement
- Aren’t ready to downsize or sell
- Understand and accept the long-term financial impact
- Before proceeding, always get independent financial and legal advice to ensure it's the right fit for your situation