Watch How Reverse Mortgage Works

Do I still own my home?

Yes. Your property remains in your name and you continue to benefit from any future growth in its value. 

How much can I borrow?

The amount available depends on factors such as your age, property value, and lender requirements. Generally, older borrowers may be able to access a larger percentage of their home's value. 

Can a reverse mortgage affect my pension?

It may affect government benefits depending on your circumstances and how funds are used. Advice should always be obtained. 

What happens when the home is sold?

The loan balance, including accumulated interest and fees, is repaid from the sale proceeds. Any remaining equity belongs to you or your estate. 

Do I need to make repayments?

No. Reverse mortgages do not require regular repayments during the life of the loan, although many lenders allow voluntary repayments.

Are Reverse Mortgages safe? 

Reverse mortgages are regulated under the National Consumer Credit Protection Act, with additional safeguards introduced to protect older Australians. 

However, like any financial product, they are not suitable for everyone. Key considerations include: 

• Compound interest increases the loan balance over time 
• Reduced equity for future needs or inheritance 
• Impact on government benefits (such as the Age Pension) 

That’s why professional advice is essential before proceeding. 

Who should consider a Reverse Mortgage? 

A reverse mortgage may suit you if you: 

• Are 60 or older
• Own your home (or have low remaining mortgage debt) 
• Want to improve your retirement lifestyle 
• Prefer to age in place rather than downsize 
• Need access to funds without regular repayment pressure 

It may not be ideal if you plan to sell your home in the short term or want to preserve as much equity as possible for inheritance. 

Why speak to a Mortgage Broker first? 

Reverse mortgages are complex and not one-size-fits-all. A specialist mortgage broker can: 

• Structure a Reverse Mortgage to suit your individual requirements.
• Explain fees, interest rates, and long-term impacts 
• Ensure the loan aligns with your retirement goals 
• Help you understand alternatives such as downsizing or refinancing 

At Seniors Mortgage Finance, we take the time to understand your personal situation and provide clear, obligation-free advice—so you can make confident decisions about your future. 

What are the costs?

Being informed about the costs is an important part of deciding whether a reverse mortgage is right for you.

Costs may include:

• Interest charges 
• Establishment fees 
• Legal or settlement costs 
• Our fees

We can help you understand the total cost over time and compare available options so you can make an informed decision.

Are there regulations to protect us?

Reverse mortgages in Australia are subject to regulations and consumer protections designed to help borrowers make informed decisions and remain secure in their homes.

Can I continue living in my home?

A reverse mortgage allows you to access a portion of your home's equity while continuing to live in the property you know and love. For many Australians, remaining connected to their local community, family, and support networks is an important part of retirement.

What is a “No Negative Equity Guarantee”?

Australian reverse mortgages include a No Negative Equity Guarantee. This means that when the property is eventually sold, neither you nor your estate can owe more than the sale proceeds of the home.

Should I get an Independent Legal Advice?

Yes, before a reverse mortgage can proceed, independent legal advice is required. This ensures you fully understand the loan structure, your obligations, and how the arrangement may affect your future financial plans.

What do I need to know from the outset?

Understanding both the benefits and long-term implications of a reverse mortgage is essential. Lenders provide projections and information to help you see how the loan balance may change over time, allowing you to make decisions with confidence.