calculating economic cost

Reverse mortgage calculator

Estimate the real cost of tapping into your equity by using our free reverse mortgage calculator.

If you've built equity in your home and are 60 or older you may qualify to get a reverse mortgage. This is when a lender loans you money against your home and you don't have to make monthly repayments to repay the money you borrow. You only have to repay the money when you no longer live in the house, upon your passing away, if you decide to sell your home, or if you move into a retirement home.

Because of this, the interest charges can build up over time and cost quite a lot. You can use our reverse mortgage calculator to estimate your final payment. Start entering your details into the calculator, or read more below about how the calculator works.

How to use the reverse mortgage calculator

Using the calculator requires you to add certain information regarding the borrower, the property and the loan in question.

  • Age of borrower. Age comes into play because most lenders follow the same principle in this regard – older borrowers qualify for more. For example, while a lender might allow you to borrow 20% of your home's value when you're 60, the same lender could offer as much as 40% by the time you're 75.
  • Property value. Property value plays a role in how much you can borrow, because lenders normally limit their reverse mortgage loans in between 40 to 50% of property values. So, if your home is valued at $600,000, expect to get no more than $300,000. Borrowing any less is easier and some lenders have limits on the minimum amount you can borrow.
  • Estimated property growth rate. This is how much your lender expects your property to grow in value each year. Most lenders stick to an average of 3% growth per year.
  • Required payment option. Once you know how much you wish to borrow you have to decide if you want the money in the form of a lump sum payment or regular monthly payments. With monthly payments, you can choose the amount and the duration they go on for as long as the total amount falls within what you qualify to borrow. In case you receive monthly payments, find out if the lender charges interest on the money only after disbursing it.
  • Interest rate. This is the interest the lender charges against the money you borrow and varies from one reverse mortgage to another. Even a drop of half a percent can make a significant difference, so it’s important to take this into consideration when comparing your options.

Interested in a reverse mortgage? Compare some options and get in touch with a lender

Rates last updated December 18th, 2018
Loan purpose
Offset account
Loan type
Repayment type
Your filter criteria do not match any product
Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
$0 p.a.
A reverse mortgage that lets you access the equity in your investment property.
$80 p.a.
Borrow up to 35% LVR to help fund your retirement.
$0 p.a.
A reverse mortgage for homeowners over 60 wishing to access up to 45% of their property's value.
$0 p.a.
Get access to your equity to fund your lifestyle.
$12 monthly ($144 p.a.)
Unlock your equity with low ongoing fees and a $1,500 cashback offer for refinancers.
$0 p.a.
A reverse mortgage designed to help fund your aged care costs.
$0 p.a.
Borrow up to 45% of your home's value if you're 60 or over.

Compare up to 4 providers

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2 Responses

  1. Default Gravatar
    lesleyApril 3, 2016

    would i be able to get a reverse mortgage on my property ? if i reside in a country town that is at least 300ks from a main city.

    • finder Customer Care
      BelindaApril 4, 2016Staff

      Hi Lesley,

      Thanks for getting in touch.

      You might be interested to learn more about how reverse mortgages work on this page, including the benefits and risks.

      Please keep in mind that lenders typically impose stricter eligibility criteria for reverse mortgages, particularly for rural properties, however this will be treated on a case-by-case basis. Your best course of action would be to enquire directly with the lender or a mortgage broker to see whether you will qualify for a reverse mortgage for a rural property.
      It’s worth noting that reverse mortgages generally attract a higher interest rate compared to other home loan products.

      All the best,

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