Finder makes money from featured partners, but editorial opinions are our own.

Compare reverse mortgages in Australia

Australian homeowners aged 60+ can use a reverse mortgage to borrow money using their home as security. But when you sell the property the lender gets a portion of the sale.

{"visibility":"visibilityTable","ctaLabel":"Calculate","tableCode":"SAMPLE_COMPARISON_V2_TEMPLATE","nicheCode":"AUFHL","fields":[{"name":"LOAN_AMOUNT","value":"150000","options":"","label":"Borrowing amount","suffix":"$","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""},{"name":"PERIOD","value":"30","options":"","label":"Period","suffix":"years","useSuffixAsPrefix":true,"useDropDownOption":false,"tooltip":""}]}
Name Interest Rate p.a. Comparison Rate p.a. Fees Monthly Payment
Principal & InterestOwner-occupier
Interest Rate
Comparison Rate
Application: $395
Ongoing: $0 per month
Monthly Payment
Principal & InterestInterest only15% min. deposit
Interest Rate
Comparison Rate
Application: $0
Ongoing: $0 per month
Monthly Payment
Principal & InterestInterest only50% min. deposit
Interest Rate
Comparison Rate
Application: $449
Ongoing: $0 p.a.
Monthly Payment
Principal & InterestInterest only66.25% min. depositInvestment
Interest Rate
Comparison Rate
Application: $0
Ongoing: $0 p.a.
Monthly Payment
Showing 4 of 4 results

How do reverse mortgages work?

Reverses mortgages are for older Australian home owners who need to access some of the money in their property without selling it (this money is called equity).

A reverse mortgage lender charges fees and interest on the money you borrow. But instead of making monthly payments to repay the loan over time, you pay it all back later when you sell the property, move into a retirement home or die.

The amount of equity in your home you can borrow is limited and is determined by your age and the value of your property. Lenders won't let you borrow more than 50% of your property's value. You need to be at least 60 to take out a reverse mortgage.

⚠️ Seek independent financial advice before applying for a reverse mortgage

Taking out a reverse mortgage can affect your ability to pay for future living expenses and reduces the value of your home. A reverse mortgage could also affect your eligibility for the Aged Pension.

Seek independent financial advice before applying for a reverse mortgage and check with Services Australia to see if a reverse mortgage could affect your access to the pension.

Reverse mortgages: Key facts and terms

House with a dollar sign

What is equity?

Equity is the current value of your home, minus any debts. It's how much of the home you own, in a dollar value.

If your home is worth $700,000 and you have $100,000 left on your home loan you have $600,000 equity. If you've paid off your home loan your equity is $700,000.

A reverse mortgage lets you borrow money using the equity in your home.


How do I pay off a reverse mortgage?

You don't have to repay a reverse mortgage debt over time like a normal home loan.

You can pay it off when you sell your home, move into an aged care facility or die.

Some lenders may let you pay off part or all of the debt in instalments.

Icon of a man.

How can I access the money I borrow?

You can borrow the money in one go (lump sum), a regular monthly payment or a line of credit (an approved amount you can spend flexibly).

How much can you borrow on a reverse mortgage?

Most reverse mortgage lenders let you borrow between 15% and 45% of a property's value. The percentage also depends on your age. Here's an example.

Age of borrowerPercentage of property value available

Reverse mortgage example

You're 65 years old and you have a home valued at $900,000. You own the home outright, so your equity is 100%, or $900,000.

Your lender will let you borrow up to 20% of your equity, which is $180,000.

You decide to borrow $60,000 with an interest rate of 9% and a $500 application fee. In 10 years you sell the property, which has risen in value 3% a year to be worth over $1,200,000.

After 10 years our $60,000 loan plus interest is now a debt of $148,307. After paying the debt your equity is 88% of the home's value, which is over $1 million.*

*This is a simple reverse mortgage calculation that assumes a fixed 9% interest rate and a 3% annual increase in your property's value. It does not take other factors into account and is purely an illustrative example.

Reverse mortgage calculator

Use our reverse mortgage calculator to estimate how much you can borrow and what it will cost you.

To use the calculator, enter the following details:

  • Your age. The older you are, the more equity you can borrow.
  • Your property's value. You can borrow a percentage of your property's value. You can estimate your home's current worth if you're not sure.
  • An estimate of your property's future value. The lender factors in the future growth of your property's value. You can choose high, medium or low. You can also insert your own figure. Lenders usually go with 3%.
  • The interest rate. Add the interest for the reverse mortgage product you are interested in.
  • Payment options. You can get paid in a lump sum or a regular monthly payment.

How to find the best reverse mortgage for you

Every borrower has unique needs. But it's always important to find a loan with a competitive rate and lower fees. But there are other factors too.

  1. Look for a lower interest rate. A lower rate means you pay less interest on the money you borrow.
  2. Look out for fees. Reverse mortgages often have high set-up fees.
  3. Find a reverse mortgage that offers the type of payment you need (lump sum, monthly payment or line of credit).
  4. Find a lender that offers good customer service and takes the time to explain everything to you clearly.

Which banks offer reverse mortgages?

Several smaller banks and specialist retirement finance providers offer reverse mortgages in Australia today. The Big Four banks and their subsidiaries no longer offer reverse mortgages.

Australian lenders who offer reverse mortgages

  • Household Capital
  • Heartland
  • Seniors First
  • Challenger
  • Gateway Bank
  • P&N Bank
  • IMB

Please note that this list is not exhaustive.

Is there anything else I should know about these products?

Reverse mortgages affect the value of the biggest asset most people own: the family home. That's not to say that reverse mortgages are bad, but borrowers need to do their research and decide if this is the right choice for them.

  • Higher interest. Interest charges on reverse mortgages are higher than on home loans. As the interest compounds, the loan amount can increase rapidly.
  • Fees. Setup costs for a reverse mortgage may vary between lenders. Application fees range from $500 – $1,000.
  • Pension eligibility. A reverse mortgage may affect your ability to qualify for the pension. Contact the Department of Human Services to find out how it could impact your eligibility.
  • Break fees. If you fix the interest rate on your reverse mortgage, the charges to break the agreement can be costly.

Alternatives to a reverse mortgage

Sell your home

If you want to access the equity in your property, but don't want to take out a reverse mortgage, the primary alternative is to sell or downsize your home. However, this will incur other costs such as stamp duty, agent fees and conveyancing fees.

Home Equity Access Scheme

The Home Equity Access Scheme is a federal government scheme for older Australians. Similar to a reverse mortgage, the scheme allows eligible older Australians to get "a voluntary non-taxable loan" using a property as security.

The scheme offers a lower interest rate than reverse mortgages. To qualify you need to be of pension age, receiving an eligible pension, own a property and meet other criteria.

Home loan top-up

If you still have a home loan your lender might let you borrow a little more via a home loan top-up. This is just a way of extending your loan to borrow a little more. The interest rate will be lower than a reverse mortgage. But unlike a reverse mortgage you'll have to make regular repayments.

Line of credit

Another way to access equity in your home is via a line of credit loan secured by your property. You can get approved for a set amount and then you only pay interest on the money you spend.

Like a home loan top-up, you'll need to repay this loan over time, unlike a reverse mortgage.

Why you can trust Finder's home loan experts

We're free
You won't pay any more by taking out a home loan with us. Better still, we regularly run exclusive deals that you won't find on any other site – plus, our tables make it easy to compare loans.
expert advice
We're experts
We've researched and rated dozens of home loans as part of our Finder Awards. We provide unique insights and our in-house experts regularly appear on Sunrise, 7News and SBS News.
We're independent
Unlike other comparison sites, we're not owned by a third party. That means our opinions are our own and we work with lots of home loan lenders, making it easier for you to find a good deal.
We're here to help
Since 2014, we've helped 150,000+ people find a home loan by explaining the nitty gritty details simply and clearly. We'll never ask for your number or email. We're here to help you make a decision.

Frequently asked questions about reverse mortgages

More guides on Finder

Ask a Question

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our 1. Terms Of Service and 6. Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

9 Responses

    Default Gravatar
    NeilAugust 8, 2019

    The reverse mortgage calculator is quite useful. However, I want to make a repayment each month or fortnight. Is there an enhanced version of the calculator that provides for repayments of interest at least, maybe more?

      JeniAugust 9, 2019Finder

      Hi Neil,

      Thank you for getting in touch with Finder.

      We appreciate your feedback on this page. I have forwarded your feedback to the team who’s on it and they’d look into this. Please note that when it comes to repayment and calculation of interest varies per lender.

      I hope this helps.

      Thank you and have a wonderful day!


    Default Gravatar
    johnNovember 13, 2017

    I am 73 years old my wife is 55 we own our house can we reverse mortgage 100,000 our house value 1,000,000

      JoanneNovember 13, 2017Finder

      Hi John,

      Thank you for visiting Finder.

      For this particular concern, it would be best that you reach out mortgage broker that way you will get expert advice and get specialized answers to your questions.


    Default Gravatar
    SharonSeptember 11, 2017

    My husband and I are considering a reverse mortgage for home renovations he is 69 and I’m 68 which lenders supply these loans and what fees and interest would we incur we own our home

      HaroldSeptember 11, 2017Finder

      Hi Sharon,

      Thank you for your inquiry.

      As per checking you are already in the correct page. Please use the table provided above to review and compare the available options for you.

      I hope this information has helped.


    Default Gravatar
    WansoonMarch 6, 2017

    Please send me regular newsletter of

      DeeMarch 7, 2017Finder

      Hi Wansoon,

      Thanks for reaching out.

      Please feel free to sign up to our newsletter to stay updated with our latest content.


    ShirleyMarch 12, 2015Finder

    Hi C Saum,

    Thanks for your question.

    Please note that is an Australian comparison and information service. We only compare products and give general information relevant to Australia.

    You’ll need to speak to the Secretary of Housing and Urban Development in the USA directly regarding this enquiry.


Go to site