Your home is likely your most valuable asset. A reverse mortgage lets you access some of that value while continuing to live in it — with no regular repayments required.
A reverse mortgage allows homeowners — typically aged 60 and over — to borrow against the equity in their home without making regular repayments. Instead, the interest compounds and the loan is repaid when you sell the home, move into aged care, or pass away.
Unlike a standard home loan, there are no monthly repayments required. You can receive funds as a lump sum, regular income stream, line of credit, or a combination — depending on the lender and your needs.
Reverse mortgages are regulated by the National Consumer Credit Protection Act and come with a Negative Equity Protection guarantee, meaning you will never owe more than your home is worth.
Reverse mortgages are designed for asset-rich, cash-poor homeowners who want to improve their quality of life in retirement without selling their home. Common uses include:
Modify your home for accessibility, comfort, or to age in place safely — bathroom upgrades, ramps, or a new kitchen.
Top up your pension or superannuation drawdown to maintain your lifestyle without selling investments.
Cover dental work, hearing aids, mobility aids, or other health costs not fully covered by Medicare.
Fund that holiday, buy a new car, or enjoy experiences while you are healthy and active.
Provide an early inheritance, help children with a home deposit, or support grandchildren's education.
Pay off credit cards, an existing mortgage, or other debts to simplify your finances in retirement.
The amount you can borrow depends on your age and your property value. As a general guide:
Borrow up to approximately 15–20% of your home's value.
Borrow up to approximately 25–30% of your home's value.
Borrow up to approximately 35–40% of your home's value.
For joint applicants, the youngest borrower's age determines the maximum loan amount.
For example, a 70-year-old with a $1 million home could potentially access $250,000–$300,000. Our brokers will calculate your specific entitlement across multiple lenders to find the best option.
Australian reverse mortgages come with strong consumer protections built in by law:
You will never owe more than your home is worth. If the loan exceeds the property value, the shortfall is the lender's loss — not yours or your estate's.
You have the right to remain in your home for life, as long as you maintain the property and meet insurance/rates obligations.
There are no mandatory regular repayments. You can choose to make voluntary repayments to manage the growing balance — but it is not required.
Lenders require that you receive independent legal and financial advice before proceeding, ensuring you fully understand the product.
Reverse mortgages are a specialist product and not all brokers offer them. At Finance Hub, we:
Our service is provided at no cost to you — the lender pays our commission if you proceed.
Your estate (or your family) will have the option to repay the loan and keep the home, or sell the home and use the proceeds to repay the loan. Any remaining equity after the loan is repaid belongs to your estate. With Negative Equity Protection, if the home sells for less than the loan balance, your estate is not liable for the shortfall.
Reverse mortgage funds received as a lump sum are generally not treated as income for Centrelink purposes. However, if funds are invested or held in certain ways, they may affect the assets test. We recommend speaking with a financial adviser or Centrelink before proceeding.
Yes. Most reverse mortgage products allow you to make voluntary repayments at any time without penalty. This can help manage the compounding interest and preserve more equity in your home.
Reverse mortgage rates are typically higher than standard home loan rates — generally in the range of 2–4% above standard variable rates. Because no repayments are made, interest compounds over time, which is why it is important to understand the long-term projections before proceeding.
Yes. Joint applications are common and provide protection for the surviving partner — the loan does not need to be repaid until the last borrower permanently leaves the home.
Our assessment and comparison service is provided at no cost to you. If you proceed with a reverse mortgage, the lender pays us a commission — similar to how real estate agents are paid by the seller, not the buyer. You will never receive an invoice from us for our broker services.