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Reverse mortgages: Don’t get caught out

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If you’re approaching retirement or already enjoying it, you might have heard more talk lately about reverse mortgages. You’re not alone in your curiosity – a recent study by Seniors First found that inquiries about reverse mortgages have jumped by 300% in just two years.

The idea may appeal – tap into the equity you’ve built up in your home without having to sell it. However, the process can be confusing, often leading to costly mistakes.

Why Is It So Complicated?

The short answer? There are too many options and not enough clear information. Seniors First looked at Australia’s top four reverse mortgage providers and found over 150 different variables. That’s a lot to wrap your head around!

Many of the rules and eligibility requirements aren’t publicly available, which makes it even harder to figure out on your own.

The reverse mortgage market is more complex than ever. This complexity can be overwhelming for many over-60s who are simply trying to access the equity in their homes, without making a costly mistake.

Every Situation Is Different

There’s no “one-size-fits-all” reverse mortgage. What works for your next-door neighbour might not be right for you. Your age, home’s value and location, financial goals, and family situation all play a role in determining the best option.

Getting the Right Help

The good news? You don’t have to navigate this alone. Two types of professionals can make this process much more transparent and safer for you.

Mortgage Brokers who specialise in reverse mortgages understand the “hidden” components. A good broker will:

  • Compare options from multiple lenders
  • Explain the differences in plain English
  • Help you understand the true costs and long term implications
  • Find features that match your specific needs

Financial Planners can help you see the bigger picture. We can look at your overall retirement strategy and help you understand:

  • Whether a reverse mortgage fits your long-term goals
  • How it might affect your pension or other government benefits
  • What alternatives might work better for your situation
  • How to structure your finances to best suit your needs

Economic update video: September 2025

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Spring is here, bringing longer days and an opportunity to venture outdoors and enjoy the warmer months ahead.

A higher-than-expected jump in inflation figures may prompt the RBA keep interest rates on hold at this month’s meeting. Headline CPI climbed to 2.8%, up from 1.9%. The trimmed mean, the RBA’s preferred gauge of underlying inflation, also rose to 2.7% in July from 2.1% in June.

Markets responded cautiously, though the S&P/ASX 200 still edged higher for the month and notching another all-time high. The rally was driven by mining and banking stocks.

The unemployment dipped slightly to 4.2% in July and business confidence is upbeat. The number of Australian businesses rose by 2.5% over the past financial year to more than 2.7 million. Total wages and salaries increased 5.9 per cent year-on-year. The momentum appears to be lifting consumer sentiment with the Westpac-Melbourne Institute Index posting a solid gain 5.7% in August, a 3.5 year high.

As Aussie dollar finished the month at US65c and continues to be shaped by global factors.

In the US, the S&P 500 hit records highs, led by tech giants, as investors weighed tariff impacts and speculated on future rate cuts.