Reverse Mortgages
Reverse mortgages can offer financial freedom later in life, but they’re often misunderstood. If you’re over 60 and own your home (or most of it), a reverse mortgage lets you access equity – without selling or moving. Whether you’re looking to boost income, fund renovations, or support lifestyle needs, we help you understand if it’s the right move.
What Is a Reverse Mortgage?
A reverse mortgage is a type of home loan that lets eligible Australians over 60 borrow against the equity in their home – without having to make regular repayments.
Instead of paying the loan down monthly, the interest is added to the loan balance and repaid when the property is sold or no longer your primary residence – such as if you move into care or pass it on.
Reverse mortgages can be used to fund retirement, medical costs, travel, or other personal expenses but it’s essential to understand the structure, risks, and alternatives.
How Does a Reverse Mortgage Work?
Reverse mortgages work by using your home’s value as security, allowing you to release funds while still living in the property. Here’s how the process typically works:
- Eligibility check – Must be 60+ and own a qualifying property in Australia
- Property valuation – Determines how much you can access
- Loan-to-value ratio (LVR) – Older borrowers may access more equity
- No monthly repayments – Interest compounds over time and is paid later
- Flexible payout – Lump sum, regular payments, or a line of credit
One of our expert brokers will guide you through understanding how a reverse mortgage fits with your long-term plans, and how to protect what matters most – including your family home and estate.
Reverse Mortgage Eligibility in Australia
To qualify for a reverse mortgage in Australia, you generally need to:
- Be aged 60 or over
- Own your home (or have substantial equity)
- Live in the property as your primary residence
- Meet lender-specific property type and location requirements
Each lender has different criteria – we help you compare options from across the market and clarify exactly what’s available based on your age, home value, and needs.
Reverse Mortgage Interest Rates & Costs
Reverse mortgage interest rates are typically higher than standard home loans due to the loan structure and compounding interest model. Here’s what can affect your rate:
- Fixed vs variable options (rates vary across lenders)
- LVR and age – older borrowers may access more at lower cost
- Loan size and frequency of drawdown
- Lender fees – including valuation, set-up, and admin
At Money Bar, we compare interest rates across leading and specialist reverse mortgage lenders – so you can make an informed decision without surprises.
Compare: Reverse Mortgage vs Home Equity Release
Reverse mortgages are one form of home equity release — but not the only one.
Reverse Mortgage
Interest compounds over time
Usually no regular repayments are required
Funds are repaid when property is sold
Home Equity Release
May involve structured repayments
Can include reverse mortgages, line of credit loans, or shared equity
May be more flexible but require more active management
We help you weigh up your options, including newer alternatives and how they might align with your goals or inheritance planning.
Choosing the Right Reverse Mortgage
Not all reverse mortgages are created equal. The best reverse mortgage for you depends on your goals, age, property, and how much equity you wish to access.
We compare lenders on:
- Loan flexibility and features
- Reputation and transparency
- How equity drawdown affects your estate
- Cost over time and total repayment structure
We’ll guide you through the fine print so you can move forward with clarity – not confusion.
Talk to a Reverse Mortgage Expert Today
Curious if a reverse mortgage is right for you – or just want to understand your options?
We offer a no-pressure, no-obligation chat to explore what’s possible. Let’s help you make a confident, informed decision.
Here to help
Reach out to us effortlessly! Whether you opt for a chat, an email, or a brief form, we’re ready to establish a connection and offer the personalised assistance you require. Select your preferred contact method and initiate the discussion today.
Email: money
Phone: 0476 291 998
Address: 547 Chapel Street, South Yarra, Victoria, 3141