Reverse mortgage calculator
Your situation
Default commercial rate is the midpoint of the 7.85% to 9.05% range National Seniors published for June 2026. Fees excluded. Balances are capped at the home value because of the no negative equity guarantee.
After 15 years with no repayments
| Loan | Balance owed | Equity left |
|---|---|---|
| Home Equity Access Scheme at 3.95% | $271,154 | $975,220 (78%) |
| Commercial at 8.45% | $530,433 | $715,941 (57%) |
The scheme pays fortnightly amounts or capped lump sum advances rather than any lump sum you choose; treat its column as the cost of the money, not a quote. See the reverse mortgage guide for who offers what.
Want the real figures from the lenders that still write them?
Some of the brokers in our partner network arrange reverse mortgages. We refer you to one whose practice includes them, and they price the commercial products against the Home Equity Access Scheme and downsizing before anything is signed.
How the reverse mortgage calculator works
The borrowing limit uses Moneysmart's published guide: at 60 the most you can borrow is likely to be 15% to 20% of the home's value, adding about 1% for each year over 60. Lenders publish their own bands; Unity Bank's run from the lower of $200,000 or 15% at 60 to 64 up to $400,000 or 40% at 80 and over, and P&N Bank caps its loan at $300,000. The balance compounds with no repayments, fortnightly at the Home Equity Access Scheme's published 3.95% and monthly at the commercial rate you set, and is capped at the projected home value because every reverse mortgage since 18 September 2012 carries a no negative equity guarantee. Moneysmart's own published example, $125,000 at 7% with $1,000 of fees on a $500,000 home growing 3% a year, reaches $358,967 owed after 15 years against a home worth $779,984; this calculator reproduces that shape without the fees.
What to do with the number
Read the reverse mortgage guide for who still offers them and the protections, the downsizing guide for the alternative that releases equity outright, and the pensioner home loan guide if a loan with repayments is possible on your income. Services Australia's own calculator gives the Home Equity Access Scheme figures for your pension position.
Related guides and calculators
Reverse mortgage calculator FAQs
How much can a 70 year old borrow on a reverse mortgage?
Moneysmart’s guide is 15% to 20% of the home’s value at 60 plus about 1% for each year after, so roughly 25% to 30% at 70. Unity Bank publishes 70 to 74 as the lower of $300,000 or 25% of the value, and P&N Bank caps its loan at $300,000. This calculator uses the Moneysmart guide; the lender’s own valuation and bands decide the real figure.
How is the balance calculated?
The amount drawn grows at the interest rate with no repayments, compounding fortnightly for the Home Equity Access Scheme (Services Australia publishes 3.95% compounding fortnightly) and monthly for the commercial column. The home value grows at the rate you set. Equity left is the difference. Fees are excluded; Moneysmart’s own example adds $1,000 of set-up fees.
Why show two rates?
Because the government scheme and the commercial lenders are far apart. National Seniors publishes commercial reverse mortgage rates of 7.85% to 9.05% as at June 2026 against the Home Equity Access Scheme’s 3.95%, and the gap compounds: on $125,000 over 15 years it is roughly $226,000 against $442,000. The scheme pays fortnightly amounts or capped lump sums, so it does not suit every need, but it should be the first comparison.
Can the balance exceed the home’s value?
Not on any reverse mortgage taken out from 18 September 2012, which Moneysmart and Westpac publish carry a no negative equity guarantee. The calculator caps the balance at the projected home value for that reason. On the Home Equity Access Scheme the guarantee also applies.
Does this affect my Age Pension?
It can. The home is exempt from the assets test, but a lump sum held in the bank counts, and income streams can affect the income test. The Home Equity Access Scheme is designed around the pension and its payments are non-taxable. Check with Services Australia or a financial adviser before drawing.