Calculator · Central Lending Solutions
Reverse Mortgage Calculator
How much can I borrow with a reverse mortgage? Australian homeowners aged 60 or older can typically draw 15% of their home value at age 60, 20% at 65, 25% at 70, then around 1% more for every extra year. This is a senior borrower product. Use the calculator below for a guide, then read the cautions before you act.
Why this matters
What this calculator is actually telling you.
A reverse mortgage, also called a home equity release loan, lets a homeowner aged 60 or older borrow against the equity in their property without making regular repayments. Interest is added to the loan balance each month and the full debt is settled when you sell, move into aged care, or pass away. By law, every regulated reverse mortgage written in Australia since 2012 carries a statutory no negative equity guarantee under the National Consumer Credit Protection Act. This means you can never owe more than the net sale value of the home, even if the loan balance grows above the property price.
The trade off is compounding. Because nothing is being repaid, interest charges itself on top of interest every month. At a reverse mortgage rate of around 9% to 10.5%, a $100,000 draw taken at age 65 can grow to roughly $200,000 by age 75 and close to $400,000 by age 85. The calculator above plots that curve against your projected home value so you can see how much equity is left for you, your partner, or your estate at each future age.
Before any reverse mortgage decision, check the federal Home Equity Access Scheme (HEAS), administered by Services Australia. HEAS lets eligible Australians of Age Pension age top up their income using home equity at a government interest rate that is usually well below private reverse mortgage rates. For many Perth retirees who only need a modest income boost, HEAS is the cheaper answer. Full details and eligibility are on the Services Australia website and ASIC MoneySmart at moneysmart.gov.au/retirement-income/reverse-mortgage-and-home-equity-release.
A family conversation is not optional. A reverse mortgage reduces the inheritance you leave behind and can affect Age Pension and aged care means testing. Typical Perth use cases we see are delaying a downsize while the market settles, funding a Refundable Accommodation Deposit for aged care, paying for home modifications so a parent can stay at home longer, or clearing an existing home loan before retirement. Each of those has alternatives worth weighing first. Speak with your family, get independent legal and financial advice, and only then talk to a broker.
Questions
Frequently asked.
How much can I borrow with a reverse mortgage at age 65, 70 or 75?
Most Australian reverse mortgage lenders use a sliding scale tied to the youngest borrower's age. As a guide, you can typically draw around 15% of the home value at age 60, 20% at 65, 25% at 70 and roughly 1% more for each year of age after that, so about 30% at 75 and 35% at 80. Lenders cap the dollar amount and may apply postcode and property type limits. Run your numbers in the calculator above, then confirm the actual figure available to you with a Central Lending Solutions broker on 0489 082 257.
Do I have to make repayments on a reverse mortgage?
No regular repayments are required while you live in the home. Interest is added to the loan balance each month and the full debt is repaid when the home is sold, you permanently move into aged care, or the last borrower passes away. You can choose to make voluntary repayments at any time to slow the compounding, and some lenders allow interest only payments to keep the balance flat. This is general information only, not credit assistance.
What is the no negative equity guarantee?
The no negative equity guarantee is a statutory protection that has applied to every regulated Australian reverse mortgage written since 18 September 2012, under the National Consumer Credit Protection Act. It means you, your partner or your estate can never be asked to pay more than the net market value of the home when it is sold, even if the loan balance has grown above the property price. The lender wears the shortfall, not the family. Read the full ASIC explanation at MoneySmart.
What is the difference between a reverse mortgage and the federal Home Equity Access Scheme?
A reverse mortgage is a private loan from a bank or non bank lender, currently priced around 9% to 10.5% per year in 2026, taken either as a lump sum, an income stream or a line of credit. The Home Equity Access Scheme (HEAS) is a federal government loan administered by Services Australia for Australians of Age Pension age. HEAS is paid as a fortnightly top up or short lump sum and carries a government set interest rate that is usually well below private reverse mortgage pricing. For many retirees who only need an income boost, HEAS is the cheaper option and should be considered first.
Will a reverse mortgage affect my Age Pension or aged care fees?
It can. Money drawn from a reverse mortgage and held as cash, invested or used to buy assessable assets may be counted under the Centrelink income and assets tests, which can reduce your Age Pension. A reverse mortgage used to pay a Refundable Accommodation Deposit for residential aged care is treated differently again under the means tested care fee. The rules are technical and personal. Speak with a Services Australia Financial Information Service officer or an independent financial adviser before drawing funds.
Where do I go for help with a reverse mortgage in Perth?
Start by reading the ASIC MoneySmart reverse mortgage page at moneysmart.gov.au and the Services Australia HEAS page. Have an open conversation with your family and get independent legal advice, as required by the lender. When you are ready to compare actual lender offers, call Central Lending Solutions on 0489 082 257 or book a free chat. Harj Dhillon and the team will run the numbers against your real situation across more than 30 lenders. ACL 497 950, MFAA member.
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