Reverse Mortgages

How a Reverse Mortgage Works?

Unlike a standard home loan, you don’t make regular repayments. Instead, interest is added to the loan balance over time. The loan is usually repaid when the property is sold, you move into aged care, or pass away.

Reverse mortgages in Australia are generally available to homeowners aged 60 and over. The amount you can borrow depends on your age and the value of your property. Older borrowers are typically able to access a higher percentage of equity, referred to as the Loan-to-Value Ratio (LVR). LVRs usually start lower (around 15–20%) and increase with age.

Key Considerations

Because interest compounds over time, the loan balance grows. It’s important to understand how this affects the remaining equity in your home—the longer the loan runs, the more interest accrues.

Funds can typically be taken as:

• A lump sum

• Regular payments

• A line of credit

• Or a combination of these, depending on the lender and your needs.

Is a Reverse Mortgage Right for You?

How White Willows Finance can help

Reverse mortgages can be a valuable strategy in the right circumstances, but they’re not suitable for everyone. They may affect Age Pension entitlements and reduce the inheritance left to beneficiaries.

It’s important to seek financial and legal advice before proceeding to ensure you fully understand the long-term implications and how it fits with your broader retirement plans.

At White Willows Finance, we help you navigate the complexities of reverse mortgages with confidence and clarity. We:

• Explain all available options and loan structures

• Help you understand the impact on your equity, pensions, entitlements, and estate planning

• Work with your financial and legal advisers to ensure decisions align with your retirement goals

With our guidance, you can make well-informed decisions and access your home equity safely, comfortably, and strategically—helping you enjoy greater financial flexibility in retirement.