Property

Reverse Mortgage Calculator Australia 2026

See how a reverse mortgage affects your home equity over time, with No Negative Equity Guarantee.

Property & Borrower

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years

Loan Details

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Projection Settings

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How the Reverse Mortgage Calculator Works

Compounding Interest

Unlike a standard mortgage, reverse mortgage borrowers make no repayments. Interest compounds annually on the outstanding balance, meaning the loan grows exponentially over time: Balance = Loan × (1 + rate)years.

Property Growth

Your property value is projected to grow at the rate you specify. Historically, Australian property has grown 3-5% per year on average, but this varies significantly by location and market conditions.

NNEG Protection

The No Negative Equity Guarantee ensures you never owe more than your home is worth. If the loan balance exceeds the property value, the lender absorbs the loss — not the borrower or their estate.

Disclaimer

This calculator provides projections based on assumed constant rates. Actual results will vary with market conditions. This is not financial advice. Consult a qualified financial adviser before taking out a reverse mortgage.

Frequently Asked Questions

What is a reverse mortgage in Australia?
A reverse mortgage lets homeowners aged 60+ borrow against their home's equity without making repayments. Interest compounds on the loan balance, and the loan is repaid when you sell the home, move into aged care, or pass away.

How much can I borrow with a reverse mortgage?
Typically 15-20% of your home's value at age 60, increasing by about 1% for each additional year of age. At age 75, you might borrow up to 35% of your home's value. ASIC's negative equity protection means you'll never owe more than the home is worth.

What are the risks of a reverse mortgage?
The main risk is compound interest significantly reducing your equity over time. A $100,000 loan at 8% doubles to $200,000 in about 9 years. This leaves less inheritance and may affect Age Pension eligibility if the funds increase your assessable assets.

Are there alternatives to a reverse mortgage in Australia?
Alternatives include the government's Home Equity Access Scheme (HEAS), downsizing to release equity, accessing super, or the Pension Loans Scheme. The HEAS offers lower interest rates than commercial reverse mortgages.

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Last updated: April 2026

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