At AxJ, we specialise in helping you unlock the potential of your home equity through tailored reverse mortgage solutions. Our experienced brokers are committed to securing the most favourable terms, ensuring you have the financial flexibility to enjoy your retirement. You can rely on us to guide you through every step of the process with professionalism and personalised service, making your journey to financial security as smooth as possible.
Retirement should be a time to enjoy the rewards of a life well-lived, but for many, financial concerns can make this stage challenging. If you’re a homeowner in Melbourne, your property may hold the key to greater financial flexibility, allowing you to enjoy your retirement on your own terms. A reverse mortgage offers a way to access the equity in your home, giving you a flexible source of funds without the need to sell or relocate. But is this option truly right for you?
In this guide, AxJ Finance Brokers will walk through the essentials, simplify complex concepts, and help you decide if a reverse mortgage aligns with your retirement goals. Think of us as your financial partner, here to provide clear, reliable information so you can make an empowered choice.
Considering a reverse mortgage? Speak with a trusted advisor today to explore your options!
A reverse mortgage allows homeowners aged 60 and older to tap into the equity built in their homes. Unlike a traditional mortgage, where you pay the lender each month, a reverse mortgage pays you or offers you access to funds in various flexible ways—all while you stay in your home.
This form of home value-based loan is part of a broader set of retirement financing options that can help you access funds from your home’s equity while maintaining ownership.
Ready to learn more? Connect with a Reverse Mortgage Specialist and get tailored advice today!
For many retirees, a reverse mortgage provides an alternative income stream to cover various needs: from healthcare expenses to home renovations or even just a bit of extra financial breathing room. Unlike a traditional loan, a reverse mortgage doesn’t require monthly repayments. Instead, the loan balance, including interest, is settled when you sell your home, move out permanently, or pass away.
Consider this scenario: Margaret, 72, owns her home outright but finds herself struggling to cover rising healthcare costs and daily expenses. With a reverse mortgage, Margaret can access some of her home’s equity, supplementing her retirement income without worrying about monthly payments or having to downsize.
The requirements for a reverse mortgage are simple but essential to understand:
✅ Age Requirement: You must be at least 60 years old.
✅ Primary Residence: The home must be your main residence, ensuring you live there for the majority of the time.
✅ Home Ownership: Ideally, you should fully own your home or have a small remaining balance on your mortgage.
Eligibility is not just about meeting minimum requirements but also involves understanding your borrowing capacity, which increases with age. A 60-year-old might be able to borrow about 15–20% of the home’s value, while an 80-year-old may qualify for a larger percentage. This reflects lenders’ calculations on factors like life expectancy and projected interest growth over time.
At its core, a reverse mortgage is a type of loan that uses the equity you’ve built up in your home as security. Unlike traditional mortgages, it doesn’t require monthly payments; instead, the loan balance grows over time. The debt is repaid when you permanently leave the home, sell the property, or pass away.
This type of senior mortgage solution enables retirees to remain in their homes while accessing a portion of their home’s value to fund their financial needs. With protections like Negative Equity Protection in place, you’ll never owe more than the value of your home, ensuring both flexibility and peace of mind for you and your family.
Interest on a reverse mortgage compounds, meaning each year’s interest is added to the loan balance, and interest is calculated on the new balance the following year. Here’s an example:
This compounding effect allows you to access more funds upfront, but it’s wise to understand how it affects the equity remaining in your home over time.
As of 2025, reverse mortgages are not commonly offered by the Big Four banks (CBA, Westpac, NAB, ANZ). However, there are reverse mortgage lenders and non-bank financial institutions actively servicing this space:
1. Heartland Reverse Mortgages
The market leader in Australia for reverse mortgages.
Offers loans to individuals aged 60 and over.
Allows borrowers to access equity as a lump sum, regular advance, or cash reserve facility.
Known for flexible drawdown options and no negative equity guarantee.
Targets retirees seeking to improve retirement funding.
Offers reverse mortgages with a focus on long-term retirement income support.
Provides options for refinancing existing mortgages, funding home improvements, or supplementing superannuation.
| Lender | Age Requirement | Payment Types | NNEG* | Interest Rates |
|---|---|---|---|---|
| Heartland | 60+ | Lump sum, Income, Reserve | Yes | Variable (~9.20%) |
| Household Capital | 60+ | Lump sum, Regular income | Yes | Similar to market |
| HEAS (Gov) | 66+ (or pension age) | Fortnightly | Yes | Low (~3.95%) |
*NNEG = No Negative Equity Guarantee (you will never owe more than your home’s value)
These banks and institutions provide reverse mortgage products or senior equity loans directly:
Heartland Bank – Reverse Mortgages – A leading specialist provider for seniors aged 60+.
Household Capital – Reverse Mortgage Loans – Helps retirees access home equity for income, healthcare, and longevity.
Gateway Bank – Reverse Mortgages – Offers home equity access products.
G&C Mutual Bank – Reverse Mortgage – Provides reverse mortgages online for eligible seniors.
PN Bank – Reverse Mortgage – Explains reverse mortgage features and eligibility.
HomeStart Finance – Seniors Equity Loan – Government-backed option in South Australia.
Commonwealth Bank – Equity Unlock Loan for Seniors – Describes historical reverse mortgage options (currently not actively offered).
Westpac – Reverse Mortgage Calculator – Tool to estimate your accessible equity.
Home Equity Access Scheme (HEAS) – Services Australia – Government-run reverse mortgage program for retirees.
Reverse Mortgage & Home Equity Release – Moneysmart – Trusted ASIC guidance on risks and benefits.
Reverse Mortgage Calculator – Moneysmart – Official tool to estimate loan amounts and impact.
How Much You Can Get Under HEAS – Helps calculate fortnightly payments via HEAS.
HEAS – Department of Social Services – Official policy background.
DVA Loan Against the Equity in Your House – Specific resource for veterans.
Canstar – Reverse Mortgages in Australia Explained – Independent comparison and insight.
Mozo – Reverse Mortgages Guide – Comprehensive overview and lenders list.
Finder – Compare Reverse Mortgages – Side-by-side product comparison.
Finty – Reverse Mortgages Explained – Clear breakdown of pros, cons, and lenders.
Choice – Reverse Mortgages and HEAS Comparison – Consumer advocacy insights.
InvestSMART – Know the Pros and Cons – Focus on financial planning implications.
SuperGuide – What Are Reverse Mortgages? – Covers retirement income and home equity release.
ASIC Report – Consumer Experiences with Reverse Mortgages – Government report on consumer protections.
ASIC – Using the Reverse Mortgage Calculator – Guide for lenders and brokers.
Law Handbook SA – Legal Guide to Reverse Mortgages – Independent legal explanations.
We’re excited to assist you with your reverse mortgage plans and help you access the equity in your home to support a comfortable retirement.
At AxJ Finance Brokers, we offer a premium mortgage brokerage service that takes the stress out of securing finance. We handle everything from start to finish, ensuring a seamless experience with expert guidance at every step. With access to over 40 lenders, our award-winning brokers secure competitive rates and structured loans, so you can focus on what matters while we take care of the rest.
Founder & Mortgage Broker
Jason is the principal finance broker at AxJ Finance Brokers. Prior to joining the mortgage industry in 2013, he worked with several real estate agencies and developers in sales and real estate market research.
Outside of the financial world Jason loves spending time with his family and walking the beautiful green areas Melbourne has to offer.
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Audrey looks after our people and the culture of our company. She keeps everyone sane and ensures that our organisation is operating effectively.
Loan Processor & Administrator
Kate has been an integral contributor of Jason & Audrey’s team since 2017. She oversees all loan submissions, ensuring all bases are covered for our lenders to make a timely and informed decision on our submissions.
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A reverse mortgage offers three main options for accessing funds, each suiting different financial needs. Understanding the benefits of each can help you decide which works best for your situation:
This is a single, one-time payment, perfect for covering significant, immediate expenses like home improvements, medical bills, or debt repayment. A lump sum has the most noticeable impact on interest over time since interest accrues on the entire amount from day one.
This option lets you gradually boost your retirement income. By receiving regular monthly payments, you have a steady source of support for daily expenses like groceries, utilities, and other living costs. Because you’re accessing the funds in smaller amounts over time, interest builds up more slowly, helping to conserve your home equity.
A flexible choice, the line of credit allows you to withdraw money as you need it, whether for occasional expenses or unexpected events. Interest is charged only on the amount withdrawn, making it a good option for those who want funds on hand for emergencies but don’t need to access all the equity upfront.
Many borrowers choose a mix of these options to create a balanced approach—say, a small lump sum for immediate needs with a line of credit as a backup.
Discover the best option for your retirement needs—schedule a free consultation with our Reverse Mortgage Specialists!
Reverse mortgage finance solutions include several fees and expenses. Knowing these upfront can help you evaluate whether the benefits outweigh the costs for your situation:
Factoring in these costs can provide a clear picture of how much equity you’ll retain, helping you to make a balanced decision.
Wondering how fees may impact your loan? Speak with a financial expert today to understand the full picture.
With a reverse mortgage, you keep ownership of your home. However, there are a few ongoing responsibilities tied to the loan:
Meeting these requirements is crucial, as falling behind on obligations can lead to complications with the loan, though such issues are rare when homeowners stay in good standing.
The reverse mortgage loan terms specify that repayment occurs when you no longer live in the home, whether you sell it, move out permanently, or pass away. Here’s how it works in different situations:
For more on how a reverse mortgage may affect your estate, reach out to our experienced team today.
Evaluating both the benefits and potential drawbacks of a reverse mortgage can provide clarity on whether it’s the right fit:
Pros: |
| Access home equity without selling or relocating |
| Flexibility in how you receive funds |
| No monthly repayments, reducing pressure on fixed retirement income |
Cons |
Compounding interest grows the balance, reducing home equity |
Higher interest rates than traditional home loans |
Potentially reduces inheritance for family members |
Reflecting on your financial goals, family needs, and personal comfort level can help you determine if these trade-offs align with your financial planning for retirees’ strategy.
Before proceeding with a reverse mortgage, Australian regulations often require a consultation with mortgage counselling services. An advisor can offer tailored insights on how a reverse mortgage might interact with your income, benefits eligibility, or long-term care needs. This independent guidance provides peace of mind, ensuring that the decision aligns with your larger financial plan.
Need clarity? Book a session with our advisors for expert guidance on reverse mortgages and retirement financing options.
If you’re considering a reverse mortgage, it’s essential to reflect on your specific needs, goals, and family discussions. Ask yourself:
A reverse mortgage can offer substantial financial relief and flexibility in retirement, but it’s also a long-term commitment. Speaking with a reverse mortgage specialist can help clarify how this option fits into your retirement financing options, ensuring that your decision supports your immediate and future goals.
Navigating the complexities of reverse mortgages can be daunting, but at AxJ, we’re here to provide clarity and support every step of the way. We understand that deciding to access the equity in your home during retirement is a significant decision, and our goal is to help you make the right choice for your financial future.
When you choose to work with AxJ, you’re partnering with a team of experts who specialise in reverse mortgages. Our finance brokers are committed to offering personalised guidance, ensuring that you fully understand the benefits and potential implications of this financial product. We’ll work closely with you to develop a tailored plan, giving you the confidence and peace of mind to enjoy your retirement with the financial security you deserve.
Yes, you still own your home with a reverse mortgage, but you must meet certain obligations, such as keeping the house in good condition, paying property taxes, and making sure it’s insured.
Absolutely. As long as you comply with the terms of the loan—like maintaining the property and paying property-related expenses—you can stay in your home for as long as you wish.
The percentage of your home’s value you can borrow depends on your age. At 60, you might access 15–20% of your home’s value. As you age, this percentage increases.
Yes, you can make voluntary repayments on your reverse mortgage. This can reduce the accumulating interest and leave more equity in your home over time.
With negative equity protection, you’ll never owe more than what your home is worth. If the loan ends up being more than the home’s selling price, the lender takes the loss, and neither you nor your family will have to pay the difference.
A reverse mortgage may impact your Age Pension eligibility as the loan amount could be counted towards the assets test. It's important to discuss this with us or Services Australia before proceeding.
Any increase in your home's value remains your equity. However, keep in mind that the loan balance grows with time due to compounding interest, which can reduce the remaining equity.
Yes, refinancing a reverse mortgage is possible if you find more favourable terms. However, this may involve additional fees, and it's essential to consider the costs before refinancing. We can guide you through this process if refinancing is something you’re considering.
Yes, some reverse mortgage options allow you to safeguard a portion of your home’s equity for inheritance purposes. It’s vital to discuss this with your lender to ensure the arrangement meets your wishes. As brokers, we’re here to help you navigate these choices.
To protect yourself, always work with a reputable lender and consult independent legal or financial advice before signing any documents. Avoid high-pressure sales tactics, and ensure your reverse mortgage includes negative equity protection, a key safeguard in Australia. We’re committed to guiding you through a secure and transparent lending process.
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