Topping up retirement income on the pension
Supplementing the Age Pension to cover everyday living costs without depleting savings.
How a reverse mortgage works.
In plain English. With the risks as clearly as the benefits.
What is a reverse mortgage?
A reverse mortgage allows you to access some of the equity in your home, without having to sell or move out. As a loan, interest accrues on the amount borrowed. The loan is typically repaid when you sell your home, move to aged care, or pass away.
No regular repayments are required while you live in the home. Interest continues to accrue.
How it works in 4 steps.
You apply
You start the conversation with us. We listen, explain options, and answer questions.
We assess your suitability
We review your situation, eligibility, and goals to confirm whether equity release is right for you.
Lender approves the loan
If you proceed, we present your application to a suitable lender on our panel. They make the credit decision.
Funds are released and you stay in your home
Once approved, funds are released. You continue living in your home, subject to the loan conditions.
What people use equity release for.
Six common uses. All of them deserve careful thought, and all of them deserve the risk consideration in the next section.
Funding aged care for yourself or a partner
Paying Refundable Accommodation Deposits, daily care fees, or in-home care services.
Home modifications to age in place
Adapting your home so you can continue living there safely as your needs change.
Paying off an existing mortgage
Removing the burden of monthly repayments by consolidating an existing home loan.
Helping family with significant expenses
For example, education costs or home deposits. If you are considering this, please read the risk overlay below — independent advice is recommended.
Lifestyle and travel goals
Funding planned, sustainable lifestyle choices that you have considered carefully against the long-term cost of the loan.
What you need to understand before you decide.
Six risks, given equal weight to the use cases above. Read carefully. Ask us anything.
Compound interest grows the loan over time
A $200,000 loan at 6% per annum could grow to approximately $385,000 after 12 years. The amount you owe increases continuously while no repayments are made.
Your equity reduces
As the loan grows, your equity in your home reduces. This may mean less inheritance for your family.
It may affect government benefits
A reverse mortgage may affect your Age Pension or other government benefits depending on how you use the funds. We strongly encourage you to contact Centrelink or speak with a financial adviser.
Property maintenance, rates, and insurance remain your responsibility
You must keep the property well maintained, insured, and pay rates and other property-related expenses. These are conditions of the loan.
If you move to aged care, the loan may become due
Permanent moves into aged care or residential care may trigger the loan repayment. We will explain the timing and options before you decide.
It may not suit you
If you plan to move soon, need urgent living-cost funds, or want to leave your home untouched as inheritance, equity release may not be the right approach.
We will walk you through these risks before any decision is made.
Researching for a parent? Planning as a family?
Many enquiries come from adult children. Family conversations are encouraged at Money at 60. The decision to release equity is significant, and family involvement helps everyone arrive at the right answer.
Read the full family guideCommon questions we are asked.
Are reverse mortgages safe?
Reverse mortgages are regulated by ASIC under the National Consumer Credit Protection Act. Strong consumer protections apply, including the No Negative Equity Guarantee for regulated contracts.
Will I lose my home?
You have the right to stay in your home as long as you meet the loan conditions: maintaining the property, keeping it insured, and paying rates and other property-related expenses.
How much does it really cost?
Compound interest means the loan grows over time. We provide clear projections so you understand the long-term cost before you decide.
What about my children's inheritance?
Equity release reduces your equity. We have a dedicated page on estate considerations, and we encourage family discussions before any decision.
What if equity release is not right for me?
We will tell you. Our role is to inform and guide, not to sell. We will discuss alternatives or refer you to other professionals where useful.
When equity release is not right.
Sometimes equity release is not the right answer. We will say so when:
- You plan to move house soon.
- You have significant other debts that should be paid first.
- You want to leave your home as untouched inheritance and cannot accept reduced equity.
- You cannot meet property maintenance and cost obligations.
- You do not fully understand how compound interest works.
- You intend to use funds for high risk, speculative, or ongoing business purposes.
- You intend to fund a lifestyle that cannot be sustained.
If any of these apply, we will discuss alternatives or refer you to other professionals.
Before we provide any credit assistance, we will give you a Credit Guide that explains our services, how we are paid, and your rights. See our Important Information page for the full Credit Guide.