Use part of your equity
Eligible homeowners, generally aged 60 or over depending on the product, may be able to borrow against their property's value.
LATER-LIFE LENDING / HOME EQUITY
Your home has equity. Understand your options.
A reverse mortgage may help eligible older homeowners access part of their home equity without making regular repayments. But the long-term costs and alternatives deserve careful consideration.
HOW IT WORKS
What makes a reverse mortgage different?
Interest generally compounds
Regular repayments are not normally required, but accrued interest can be added to the balance and increase the debt over time.
Repayment comes later
The loan is typically repaid when the property is sold, the borrower permanently moves out or on death, according to the loan terms.
IMPORTANT RISKS
Know the trade-offs before borrowing.
Drawing on equity can provide financial flexibility, but compounding interest may reduce the equity remaining in your home and inheritance available to your estate.
Eligibility, fees, rates, maximum loan amounts and how you access funds differ by provider. We can also explore alternatives such as downsizing or other available financial support.
Illustrative advance$100,000
Example rate (not an offer)8% p.a.
Approx. balance after 10 years*$215,892
*Illustration assumes 8% annual compounding, no repayments, no changes in rates and excludes fees. It is not a product quote or prediction.COMMON QUESTIONS
Things worth discussing.
Can I stay in my home?
Generally yes, provided you meet the contract terms such as property maintenance and occupancy.
What happens to the loan?
The debt and interest are usually repaid when a contractual repayment event occurs, often the sale of the property.
What about my family?
Consider future estate plans, remaining equity and independent legal advice before deciding.
Consumer protections
Australian reverse mortgages generally have a statutory negative equity protection. Terms and eligibility still require careful review.
LET'S DISCUSS THE FULL PICTURE
Your equity is important. So is understanding the decision.
We'll talk through the products, alternatives and possible long-term consequences in plain English.
This is general information, not a recommendation or personalised financial advice. Reverse mortgages can involve substantial compounding interest and reduce home equity. Product availability and eligibility must be checked. Consider independent legal and financial advice, and review ASIC Moneysmart information.
ASIC Moneysmart — reverse mortgages ↗