Reverse Mortgage Australia

Australian senior researching reverse mortgage rates and home equity release options for retirement

Reverse Mortgage Australia | Compare Reverse Mortgage Options & Lenders

Looking for a reverse mortgage in Australia?

Plus Equity is a specialist Australian reverse mortgage broker helping eligible homeowners and retirees understand, compare and access reverse mortgage and home equity release options from Australian lenders.

We help you compare available reverse mortgage lenders, interest rates, fees, borrowing limits, eligibility requirements and loan features based on your circumstances.

Whether you want to supplement your retirement income, renovate your home, repay an existing mortgage, meet healthcare or aged care costs, help your family financially or simply create greater financial flexibility in retirement, Plus Equity can help you understand your options before you decide whether to proceed.

Compare Reverse Mortgage Options in Australia

What Is a Reverse Mortgage?

A reverse mortgage is a loan that allows eligible Australian homeowners to borrow against part of the equity in their home without immediately selling the property.

Your property is used as security for the loan. Unlike a conventional home loan, regular repayments may not be required. Interest and applicable charges can instead be added to the outstanding loan balance.

This means the amount owed can increase over time while the equity remaining in your home may decrease.

You generally continue to own and live in your home, subject to the terms and conditions of the reverse mortgage.

How Does a Reverse Mortgage Work in Australia?

A reverse mortgage converts part of the equity accumulated in your home into accessible funds.

Depending on the lender and product, approved funds may be available through a lump sum or other permitted drawdown arrangements.

The reverse mortgage process generally involves:

Assessing your age, property and eligibility
Estimating how much you may be able to borrow
Comparing available Australian reverse mortgage lenders
Comparing interest rates, fees and loan features
Considering the potential long-term effect on your home equity
Completing the lender's application and assessment process
Receiving approved funds under the agreed loan structure

If regular repayments are not made, interest may be added to the outstanding balance. Interest can then be charged on the increased balance, creating a compound interest effect.

Understanding this long-term cost is an important part of comparing reverse mortgage options.

Who Is Eligible for a Reverse Mortgage in Australia?

Reverse mortgage eligibility varies between Australian lenders and products.

Lenders may consider:

Your age
The age of any joint borrower
Property value
Available home equity
Property type
Property location
Existing mortgage or secured debt
Minimum property-value requirements
Individual lender lending criteria

Minimum age and property requirements can differ between providers.

Plus Equity can assess your circumstances against available lender criteria and help you understand which reverse mortgage options may be available to you.

What Age Can You Get a Reverse Mortgage in Australia?

There is no single minimum age that applies to every reverse mortgage product in Australia.

Minimum age requirements are determined by individual lenders and products. Your age can also affect the percentage of your property's value that a lender may allow you to borrow.

Where there are joint borrowers, lender requirements may also take the age of the younger borrower into account.

Rather than assuming you qualify based on age alone, your age, property and financial circumstances should be assessed against current lender criteria.

How Much Can You Borrow With a Reverse Mortgage?

Your reverse mortgage borrowing capacity generally depends on your age, property value, available equity, property location and the lender's individual criteria.

As a general principle, the proportion of property value that may be available to borrow tends to increase with age.

For example, two homeowners with properties of the same value may have different maximum borrowing amounts because of their ages or lender eligibility.

An existing mortgage can also reduce the amount of additional funds available because some or all of the existing secured debt may need to be repaid.

Plus Equity can assess your potential borrowing capacity or you can use our Reverse Mortgage Calculator Australia to explore an indicative scenario.

Reverse Mortgage Rates Australia

There is no single reverse mortgage interest rate in Australia.

Reverse mortgage rates vary between lenders and products and may change over time.

When comparing reverse mortgages, consider more than the headline rate. Important factors can include:

Interest rate
Comparison rate
Establishment or application fees
Valuation and other applicable costs
Whether the rate can change
Repayment options
Drawdown structure
Borrowing limits
Loan features
Long-term interest cost

Because interest may compound over many years, the rate can have a significant effect on your future loan balance.

Visit our Reverse Mortgage Rates Australia guide for a detailed explanation of rates, comparison rates and compound interest.

Reverse Mortgage Lenders Australia

Different reverse mortgage lenders in Australia can have different lending criteria, rates, fees, borrowing limits and property requirements.

A lender that suits one homeowner may not necessarily suit another.

When comparing reverse mortgage providers, consider:

Current interest and comparison rates
Minimum age requirements
Maximum borrowing limits
Eligible property types
Eligible property locations
Property-value requirements
Fees and charges
Drawdown options
Voluntary repayment options
Loan conditions and features

Plus Equity helps eligible homeowners compare available reverse mortgage lenders and products based on their circumstances.

Reverse Mortgage Calculator Australia

A reverse mortgage calculator can help you estimate how much you may be able to borrow and how a reverse mortgage balance could change over time.

The outcome can depend on assumptions including:

Your age
Property value
Initial amount borrowed
Future drawdowns
Interest rate
Loan duration
Fees
Voluntary repayments
Future property value

Calculators provide estimates rather than lending approval, but they can be useful for understanding how borrowing and compound interest may affect your future home equity.

Use the Plus Equity Reverse Mortgage Calculator to explore an indicative scenario.

What Can You Use a Reverse Mortgage For?

Subject to the relevant lender and product requirements, homeowners may consider accessing home equity for a range of purposes.

Supplement Retirement Income

Some retirees use home equity to provide additional financial flexibility alongside superannuation, savings or other retirement income.

Home Renovations and Repairs

Funds may help pay for renovations, maintenance, accessibility modifications or improvements that allow homeowners to remain in their property.

Repay an Existing Mortgage

Depending on your available equity and lender requirements, reverse mortgage proceeds may potentially be used to repay an existing home loan.

Healthcare and Aged Care Costs

Home equity may provide additional funds for healthcare, in-home assistance or aged care-related expenses.

Help Children or Grandchildren

Some homeowners consider accessing equity to provide financial assistance to family members, including helping adult children.

Any decision to gift or transfer borrowed funds should take into account your own future financial requirements.

Major Retirement Expenses

Eligible borrowers may also consider accessing home equity for other significant expenses or to create additional financial flexibility in retirement, subject to the lender's requirements.

Reverse Mortgages for Pensioners in Australia

Eligible pensioners may be able to obtain a reverse mortgage in Australia, subject to lender, borrower and property requirements.

Receiving the Age Pension does not automatically prevent a homeowner from qualifying for a commercial reverse mortgage.

However, accessing home equity can interact with your broader financial position.

If you receive Centrelink payments, consider how the way you receive, hold and use borrowed funds could affect your individual circumstances and seek appropriate advice where required.

Reverse Mortgages for Retirees

For many Australian retirees, their home represents a substantial proportion of their accumulated wealth.

A reverse mortgage can provide eligible homeowners with a way to access some of that property equity while continuing to live in their home.

This can provide additional financial flexibility without immediately selling or downsizing.

However, the loan balance may increase over time and reduce the equity remaining in the property.

Your current needs should therefore be considered alongside your future housing requirements, retirement plans and estate considerations.

Do You Still Own Your Home With a Reverse Mortgage?

Generally, yes.

A reverse mortgage is secured against your property but does not ordinarily involve transferring ownership of the property to the lender.

You remain the homeowner, subject to complying with the obligations and conditions contained in the loan agreement.

Those conditions should be understood before entering into any reverse mortgage.

Do You Have to Make Monthly Repayments?

Regular monthly repayments may not be required with a reverse mortgage.

Instead, interest and applicable charges can be added to the outstanding balance.

Depending on the lender and product, voluntary repayments may be permitted.

Making repayments can reduce the outstanding balance and therefore potentially reduce the amount on which future interest is calculated.

How Does Reverse Mortgage Compound Interest Work?

Compound interest is one of the most important concepts to understand before taking out a reverse mortgage.

If you don't pay the interest as it is charged, it can be added to your outstanding loan balance.

Future interest may then be calculated on:

the amount originally borrowed + accumulated interest + applicable amounts added to the loan.

This can cause the outstanding balance to increase progressively over time.

How quickly it grows depends on the amount borrowed, interest rate, loan duration, future drawdowns, fees and any repayments you make.

How Does a Reverse Mortgage Affect Your Home Equity?

A reverse mortgage allows you to access home equity today, but borrowing and accumulated interest can reduce the equity remaining in your property over time.

The eventual amount of equity remaining will depend on factors including:

Amount borrowed
Interest rate
Length of time the loan remains outstanding
Additional withdrawals
Repayments
Fees
Changes in property value

Understanding potential future equity is particularly important if you plan to sell, downsize, fund future aged care or leave your property as part of your estate.

What Is the No Negative Equity Guarantee?

Australian consumer-credit protections include a negative equity protection for eligible reverse mortgages, subject to the applicable legal requirements.

In general terms, this protection is intended to prevent an eligible borrower or their estate from being required to repay more than the market value of the mortgaged property in the circumstances covered by the legislation.

This does not prevent the loan from reducing the equity remaining in your property.

The specific protections and obligations applicable to your loan should be understood before proceeding.

What Happens to a Reverse Mortgage When You Sell Your Home?

If you sell a property securing a reverse mortgage, the outstanding loan balance generally needs to be repaid as part of the sale process.

The remaining proceeds, after repayment of the reverse mortgage and other applicable sale costs or secured amounts, belong to the homeowner or estate as applicable.

Check the relevant lender's loan terms before selling or changing your living arrangements.

What Happens to a Reverse Mortgage When You Die?

A reverse mortgage generally becomes repayable following a repayment event specified in the loan agreement, which may include the death of the borrower.

The borrower's estate or beneficiaries may have options depending on the circumstances and lender requirements, such as repaying the debt through other funds or selling the property.

Estate-planning implications should be considered before entering into a reverse mortgage.

Reverse Mortgage vs Home Equity Access Scheme

A commercial reverse mortgage and the Australian Government's Home Equity Access Scheme (HEAS) both involve accessing value associated with property, but they are different arrangements.

A reverse mortgage is a credit product provided by a lender and secured against your property.

The Home Equity Access Scheme is a government program administered by Services Australia with its own eligibility requirements, interest arrangements and payment limits.

The amount available, payment structure, interest cost, eligibility and flexibility can differ significantly.

The appropriate option depends on what you are trying to achieve and your individual circumstances.

Reverse Mortgage vs Downsizing

Both a reverse mortgage and downsizing can potentially provide access to wealth accumulated in your home, but they work very differently.

With a reverse mortgage, eligible homeowners may access some equity without immediately selling and moving from their home.

Downsizing involves selling the existing property and typically purchasing or moving into a less expensive home.

Important considerations can include:

Desire to remain in your current home
Amount of money required
Future housing needs
Transaction and moving costs
Interest costs
Remaining home equity
Retirement objectives
Estate considerations

Neither option is automatically better for every homeowner.

Reverse Mortgage vs Refinancing

Traditional refinancing generally involves replacing an existing mortgage with another conventional loan and typically requires borrowers to meet standard lending and repayment requirements.

A reverse mortgage has a different structure and is specifically designed around accessing home equity for eligible older homeowners.

If you still have an existing home loan, Plus Equity can help you understand whether an available reverse mortgage could potentially repay that debt and whether other options should also be considered.

What Are the Benefits of a Reverse Mortgage?

Depending on your circumstances, potential benefits can include:

Accessing home equity without immediately selling
Continuing to live in your home
Additional financial flexibility during retirement
Potentially repaying an existing mortgage
Funding renovations or major expenses
Different drawdown options depending on the product
No mandatory regular repayments under some products
Ability to make voluntary repayments where permitted

What Are the Risks and Disadvantages of a Reverse Mortgage?

A reverse mortgage is a long-term financial commitment and is not suitable for every homeowner.

Important considerations can include:

Interest compounding over time
Increasing loan balance
Reduced future home equity
Reduced value remaining in your estate
Interest-rate changes
Fees and establishment costs
Potential implications for future housing decisions
Interaction with retirement and financial planning
Product and lender restrictions

The benefits should be considered alongside these potential costs and alternatives before proceeding.

Why Use a Reverse Mortgage Broker in Australia?

A specialist reverse mortgage broker can help you compare available options rather than relying solely on information from one provider.

Plus Equity can help you:

Understand how reverse mortgages work
Assess your potential eligibility
Estimate borrowing capacity
Compare available Australian reverse mortgage lenders
Compare rates and fees
Understand loan features and drawdown options
Consider potential long-term costs
Navigate lender requirements
Manage the application process
Liaise with the lender through to settlement

Our role is to make the reverse mortgage process easier to understand and help you make a more informed comparison.

Why Choose Plus Equity?

Specialist Reverse Mortgage Knowledge

Plus Equity focuses on reverse mortgages and home equity release solutions for Australian homeowners.

Compare Available Lenders

We help eligible homeowners compare available options from multiple Australian reverse mortgage lenders rather than limiting the search to a single provider.

Personalised Reverse Mortgage Assessment

Reverse mortgage options depend on your age, property, existing debt and objectives. We assess your individual circumstances when helping you understand available options.

Australian-Based Service

Plus Equity is based in Bondi Junction, Sydney, New South Wales and assists eligible homeowners across Australia.

End-to-End Assistance

We can assist from your initial enquiry and borrowing assessment through to lender comparison, application and settlement.

Reverse Mortgages Across Australia

Plus Equity provides Australia-wide reverse mortgage assistance to eligible homeowners in capital cities, metropolitan areas and eligible regional locations.

Reverse Mortgage New South Wales

We assist homeowners throughout Sydney and NSW, including metropolitan and eligible regional locations.

Reverse Mortgage Victoria

Plus Equity assists eligible homeowners seeking reverse mortgage options throughout Melbourne and Victoria.

Reverse Mortgage Queensland

We assist homeowners across Brisbane, the Gold Coast and eligible locations throughout Queensland.

Reverse Mortgage Western Australia

Homeowners in Perth and eligible areas across Western Australia can compare available reverse mortgage options through Plus Equity.

Reverse Mortgage South Australia

We assist eligible homeowners throughout Adelaide and South Australia.

Reverse Mortgage ACT

Plus Equity provides reverse mortgage assistance to eligible homeowners in Canberra and the Australian Capital Territory.

Reverse Mortgage Tasmania

Eligible homeowners in Hobart and across Tasmania can enquire about available reverse mortgage options.

Reverse Mortgage Northern Territory

Property eligibility can vary between lenders. Plus Equity can assess available reverse mortgage options for eligible homeowners in the Northern Territory.

Frequently Asked Questions About Reverse Mortgages in Australia

What is a reverse mortgage?

A reverse mortgage allows eligible homeowners to borrow against some of the equity in their property. The home secures the loan and regular repayments may not be required, with interest instead potentially being added to the outstanding balance.

How does a reverse mortgage work in Australia?

An eligible homeowner borrows against their property equity. Funds may be accessed according to the lender's available loan structure, while interest and applicable charges accrue on the outstanding balance. The loan is generally repaid following a repayment event under the loan agreement.

What age can you get a reverse mortgage in Australia?

Minimum age requirements vary between lenders and reverse mortgage products. Age can also affect maximum borrowing capacity, with the proportion of property value potentially available generally increasing as borrowers get older.

How much can I borrow with a reverse mortgage?

Borrowing capacity depends on factors including your age, property value, property location, existing mortgage balance and lender criteria. Plus Equity can assess available options or you can use a reverse mortgage calculator for an indicative estimate.

What are reverse mortgage rates in Australia?

There is no single Australian reverse mortgage rate. Interest rates vary between lenders and products and can change over time. Compare the interest rate alongside the comparison rate, fees, features and projected long-term cost.

Which banks offer reverse mortgages in Australia?

Availability changes over time and not every bank or lender offers reverse mortgages. Rather than relying on an outdated list, homeowners should check currently available products and eligibility requirements when they are ready to compare options.

Can pensioners get a reverse mortgage?

Eligible pensioners may be able to obtain a reverse mortgage subject to lender and property requirements. If you receive Centrelink benefits, consider how accessing and using the funds may interact with your individual financial circumstances.

Can I get a reverse mortgage if I still owe money on my home?

Potentially. If sufficient equity and borrowing capacity are available, reverse mortgage proceeds may be able to repay an existing home loan as part of the transaction, subject to lender requirements.

Do I have to make repayments on a reverse mortgage?

Regular repayments may not be required under some reverse mortgage products. Interest can instead be added to the outstanding balance. Voluntary repayments may be available depending on the lender and product.

Do I still own my home?

Generally, yes. A reverse mortgage is secured against your home but does not ordinarily transfer ownership to the lender. You remain the owner subject to complying with the loan terms.

Can I sell a property with a reverse mortgage?

Generally, yes. If the secured property is sold, the outstanding reverse mortgage balance will ordinarily need to be repaid as part of the transaction in accordance with the loan terms.

What happens to a reverse mortgage when you die?

The loan generally becomes repayable following the relevant repayment event under the loan agreement. The estate may need to repay the outstanding debt, which may involve selling the property depending on the circumstances.

Does a reverse mortgage affect the Age Pension?

A reverse mortgage does not necessarily affect every person's Age Pension in the same way. The treatment can depend on how borrowed funds are received, held and used and the individual's circumstances. Consider current Services Australia rules and obtain appropriate advice where required.

Is reverse mortgage interest tax deductible?

Tax treatment depends on how borrowed funds are used and the borrower's circumstances. Homeowners should obtain qualified tax advice rather than assuming reverse mortgage interest is deductible.

Can I pay off a reverse mortgage early?

Depending on the lender and product terms, borrowers may be able to make voluntary repayments or repay the loan in full. Check applicable conditions and any costs before proceeding.

Is a reverse mortgage safe?

Reverse mortgages are regulated credit products in Australia, but they still involve financial risks, including compound interest and reduced future home equity. Whether one is appropriate depends on the homeowner's circumstances, objectives and alternatives.

Is a reverse mortgage worth it?

A reverse mortgage may be useful for some eligible homeowners who want to access home equity without immediately selling, but it is not suitable for everyone. Consider the interest cost, effect on future equity, alternative options and your long-term plans before proceeding.

Compare Reverse Mortgages in Australia With Plus Equity

A reverse mortgage can provide access to wealth accumulated in your home, but it is a significant long-term financial decision.

Understanding how much you can borrow, current reverse mortgage rates, available lenders, fees, eligibility requirements, compound interest and the potential effect on your home equity can help you make a more informed decision.

Plus Equity helps eligible homeowners compare reverse mortgage and home equity release options across Australia, with personalised assistance from initial assessment through to application and settlement.

Based in Bondi Junction, Sydney, we assist homeowners throughout NSW, Victoria, Queensland, Western Australia, South Australia, Tasmania, the ACT and the Northern Territory.

Speak with a Plus Equity reverse mortgage specialist to compare available options and request a no-obligation initial assessment.

Reverse Mortgage Options Across Australia

Reverse mortgage eligibility, property values and homeowner needs can differ across Australia's capital cities and regional markets. Plus Equity assists eligible homeowners throughout Australia to understand their borrowing capacity, compare reverse mortgage lenders and explore home equity release options.

For more detailed information relevant to your location, explore our city-specific reverse mortgage guides:

Reverse Mortgage Sydney

Explore reverse mortgage options in Sydney, including borrowing capacity, lender requirements, property valuations and home equity considerations for homeowners across Greater Sydney.

Explore Reverse Mortgages in Sydney →

Reverse Mortgage Melbourne

Learn about reverse mortgages in Melbourne, including home equity release, apartment eligibility, downsizing considerations and reverse mortgage options across Greater Melbourne.

Explore Reverse Mortgages in Melbourne →

Reverse Mortgage Brisbane

Understand reverse mortgage options in Brisbane, including ageing in place, borrowing against home equity, property eligibility and options for homeowners across Greater Brisbane.

Explore Reverse Mortgages in Brisbane →

Reverse Mortgage Adelaide

Explore reverse mortgages in Adelaide, including borrowing capacity, home equity release, Adelaide Hills property considerations and options for homeowners across Greater Adelaide.

Explore Reverse Mortgages in Adelaide →

Reverse Mortgage Perth

Learn about reverse mortgage options in Perth, including home equity release, property eligibility, borrowing capacity and considerations for homeowners across Greater Perth.

Explore Reverse Mortgages in Perth →

Reverse Mortgage Canberra

Explore reverse mortgage options in Canberra and the ACT, including borrowing capacity, home equity release, downsizing considerations and property eligibility.

Explore Reverse Mortgages in Canberra →

Plus Equity provides reverse mortgage assistance Australia-wide. If your location isn't listed above, you can still speak with us about your property, potential borrowing capacity and available reverse mortgage options.

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