Understand Your Options
Compare available structures, lender criteria and ways to access funds before making a decision.
See the Long-Term Impact
Review required projections showing how interest, fees and time may affect the equity remaining in your home.
Guidance Through the Process
Get help comparing lender requirements, preparing documents and managing the application through to settlement.
Considering a reverse mortgage?
Discuss your objectives, property and available home equity with a specialist.
Eligibility, valuation and lender requirements apply.
Reverse Mortgages in Australia: Access Home Equity Without Selling
For a broader comparison of refinance, cash-out and reverse-mortgage structures, see our home equity release options guide.
A reverse mortgage allows an eligible homeowner to borrow against the equity in their home while continuing to live in the property. Funds may be available as a lump sum, regular advances, a line of credit or a combination, depending on the lender and product.
Unlike a standard home loan, regular repayments are generally not required while you continue to live in the home and meet the loan conditions. Interest and fees are added to the balance, so the amount owing usually increases over time and the equity remaining in your home generally decreases.
GQ Finance helps Australian homeowners understand available reverse mortgage options, compare lender requirements and work through the application process. Eligibility and approval remain subject to lender criteria, verification, valuation and responsible-lending assessment.
What is a reverse mortgage?
A reverse mortgage is a loan secured against your home. Instead of making scheduled principal-and-interest repayments, interest is normally added to the loan balance and compounds over time.
The loan is typically repaid when you sell the property, permanently move out, or the last borrower dies and the estate sells or refinances the home. Other repayment events may be specified in the credit contract.
Who may qualify?
Eligibility varies by lender. Common considerations include the age of the youngest borrower, the property’s location and value, any existing secured debt, the amount requested and whether the proposed loan is suitable for your circumstances.
Minimum-age and loan-to-value limits are lender-specific. The amount available generally increases with the age of the youngest borrower. GQ Finance can review the relevant criteria before a formal application is made.
How can funds be accessed?
- Lump sum: a single advance for a defined expense. Interest starts accruing on the full amount immediately.
- Regular advances: scheduled amounts that may help supplement cash flow for an agreed period.
- Line of credit or reserve: approved funds that remain available for future use, subject to product terms.
- Combination: an initial advance combined with future payments or a reserve.
How interest affects your equity
Interest and applicable fees are added to the balance. The eventual amount owing depends on how much you borrow, when funds are drawn, the interest rate, fees, the loan term, voluntary repayments and changes in the home’s value.
Your broker or lender must provide reverse mortgage projections showing how the proposed loan may affect your home equity over time. You can also explore scenarios using the Moneysmart reverse mortgage calculator.
No negative equity protection
Australian reverse mortgages entered into from 18 September 2012 have negative equity protection. This generally means that when the mortgaged property is sold, the borrower or estate will not have to repay more than the property’s market value, subject to the applicable law and loan conditions.
Eligibility Varies by Lender
Minimum age, borrowing limits and available payment options depend on the selected lender and the youngest borrower’s age.
Home and Equity Requirements
Lenders assess property ownership, location, type, value, condition and any existing debt secured against the home.
Our Benefits
Understand the Benefits, Costs and Risks
A reverse mortgage may provide access to home equity, but it is a long-term financial commitment. Interest rates may be higher than standard home-loan rates and the debt usually grows while the equity remaining in the property decreases.
Risks and matters to consider
Before applying, consider how the loan could affect your future living and medical costs, aged-care funding, government benefits, anyone else living in the property, your ability to move or refinance, and the amount remaining for your estate.
Helping family members or investing borrowed funds can create additional financial, legal and tax risks. Consider obtaining independent financial and legal advice. Services Australia’s Financial Information Service can explain possible effects on government benefits.
Alternatives to consider
Depending on your circumstances, alternatives may include using savings, applying for government support or the Home Equity Access Scheme, refinancing where repayments are affordable, downsizing, selling another asset, receiving family assistance or changing the amount or timing of the planned expense.
How GQ Finance assists
We discuss your objectives, property, existing debts, household circumstances and future plans. Where a reverse mortgage appears appropriate, we compare relevant lender criteria, explain costs and key conditions, arrange the required projections, help prepare documents and manage the application through to settlement.
Approval is not guaranteed. Independent legal advice and other safeguards may be required before settlement.
Frequently asked questions
Do I still own my home?
Yes. You retain ownership, subject to the lender’s mortgage and your obligations under the credit contract.
Do I need to make monthly repayments?
Regular repayments are generally not required while you continue living in the home and comply with the conditions. Voluntary repayments may be permitted.
How much can I borrow?
The amount depends on the youngest borrower’s age, property value, lender limits, existing secured debt and other eligibility requirements.
Will it affect my pension?
It may, depending on how the funds are received and used. Contact Services Australia and obtain advice relevant to your circumstances.
What happens when the home is sold?
The sale proceeds are used to repay the outstanding balance, interest and applicable fees. The remaining amount belongs to you or your estate.
General information only: This information does not take into account your objectives, financial situation or needs and is not financial, legal, tax or Centrelink advice. Credit assistance and approval are subject to applicable law and lender criteria.
Flexible Access Options
Depending on the product, funds may be available as a lump sum, regular advances, a line of credit or a combination.
Required Equity Projections
Review projections showing how the proposed loan may change the balance owing and your remaining home equity over time.
Clear, Responsible Guidance
We explain lender criteria, costs, repayment events, risks and alternatives so you can make an informed decision.
How It Works
01
Initial Discussion
We discuss your objectives, property, existing debts, household circumstances and future plans.
02
Preliminary Assessment
We review relevant lender criteria and whether a reverse mortgage appears capable of meeting your requirements and objectives.
03
Options and Projections
Where appropriate, we explain available structures, costs and required projections showing the possible effect on your equity.
04
Documents and Valuation
We help prepare the required information and coordinate the property valuation and lender requirements.
05
Application and Assessment
We submit the selected application and manage requests for further information. Approval remains subject to lender assessment.
06
Advice and Settlement
We coordinate with the lender and relevant professionals through the required advice steps and settlement.
