Reverse Mortgage Calculator
Unlock your home’s wealth with our Reverse Mortgage Calculator to see how much equity you can safely access while remaining the 100% owner of your property.
Access Your Home’s Wealth Without Moving
For many Australians, the family home is their most significant asset. If you are aged 60 or over and find yourself ‘asset-rich but cash-poor,’ a reverse mortgage could be the key to a more comfortable retirement.
Our Reverse Mortgage Calculator helps you project how much equity you can safely release while remaining the 100% owner of your home.
What Can You Use a Reverse Mortgage For?
Unlike a traditional loan, you don’t have to use this money only for your home. Our clients often use these funds for:
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Home Improvements: Modifying your home to “age in place” safely.
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Debt Consolidation: Clearing an existing mortgage or credit card to improve monthly cash flow.
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Daily Living Costs: Supplementing your pension for a better standard of living.
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Aged Care Transition: Funding a deposit for a partner moving into residential care.
Your Security is Our Priority
At Westgate Home Loans, we walk you through the fine print. We ensure you understand the compounding interest effect when getting a reverse mortgage and provide the mandatory projections required by law. We also encourage you to involve your family in these discussions to ensure your long-term legacy is protected.
Feel free to get in touch for an obligation free chat – our team can help you at every step of the process.
Frequently Asked Questions (Reverse Mortgage Calculator)
Q. Will I ever owe more than my house is worth?
A. No. In Australia, all reverse mortgages are protected by a “No Negative Equity Guarantee” under the National Consumer Credit Protection Act. This means that when the house is finally sold, you or your estate will never be required to pay back more than the market value of the property – even if the loan balance has grown higher than the sale price.
Q. How much of my home’s value can I actually borrow?
A. The amount you can borrow is strictly linked to your age. As a general rule in the Australian market, a 60-year-old can typically access around 15–20% of their home’s value. This percentage usually increases by 1% for every year you are over 60. For example, if you are 70, you may be able to access approximately 25–30%. This conservative approach ensures you retain a significant portion of equity for future needs.
Q. Does a reverse mortgage affect my Age Pension?
A. In many cases, the money you receive from a reverse mortgage is considered a loan, not income, so it may not affect your pension under the income test. However, if you take a large lump sum and let it sit in your bank account, it could be counted under the Assets Test. We strongly recommend speaking with a Centrelink Financial Information Service (FIS) officer or a qualified financial planner to understand how your specific drawdowns might interact with your benefits.
