Project a reverse mortgage balance and remaining equity.
A reverse mortgage lets an older homeowner borrow against the equity in their home without making regular repayments. Interest is added to the balance instead, and the loan is repaid when the home is sold, when the borrower moves into aged care, or from the estate. Because the interest compounds on a growing balance rather than being paid down, the debt increases over time.
Regulated reverse mortgages in Australia carry a negative equity protection, meaning you cannot be left owing more than the value of the home when it is sold, provided the terms of the contract have been met. Lenders also apply limits on how much can be borrowed based on age. These are significant consumer protections and worth confirming are in place on any product being considered.
A reverse mortgage affects your estate, may affect pension and aged care assessments, and is difficult to unwind. This is one product where independent legal and financial advice, and a conversation with family, should happen before an application rather than after. The calculator is a starting point for that conversation, not a substitute for it.
A calculator gives you a starting figure. What a lender will actually approve depends on your income, expenses, credit history and the property, and it varies between lenders. We compare more than 40 lenders on our panel and will tell you where you genuinely stand — see our home loan, refinancing and car loan services, or the suburb pages for Werribee, Tarneit and Point Cook.
Regulated Australian reverse mortgages carry negative equity protection, so provided the contract terms are met you cannot owe more than the sale proceeds of the home.
It can affect income and assets assessments. Speak to Services Australia and get independent financial advice before proceeding.
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