Retirement is supposed to be a time for rest and enjoyment—less stress, more family, and finally doing all the things you put off while working. But for many Australian parents, there’s a new kind of emotional tug happening in these later years. It’s not just about how you live, but how you help.
These days, more parents are watching their adult kids struggle with high rents, house prices that seem to rise endlessly, and the pressure of raising young families in uncertain economic times. You’ve probably asked yourself at some point:
“Should I help them now, when they need it most?”
It’s a generous thought. And it’s leading many older Australians to consider a new path—one that lets them give while they’re still alive to see the impact. That path is called a Reverse Mortgage.
[ ALSO READ: Reverse Mortgage to help your adult children? Here’s what you need to know ]
What’s a Reverse Mortgage, Really?
In simple terms, a Reverse Mortgage lets you access some of the money tied up in your home—without selling or moving out. It’s available to homeowners aged 55 and over, and it allows you to take out a loan against your home’s value. You can receive the money as a lump sum, a regular payment, or a line of credit.
There are no monthly repayments required. The loan is paid back later, usually when you move into aged care or pass away and the home is sold.
And here’s the best part: you stay in your home the entire time.
Why Some Parents Are Saying “Why Wait?”
Traditionally, people thought of an inheritance as something to leave behind—money or assets passed down after death. But there’s a growing movement among Australian retirees to give while living, and it’s easy to understand why.
Helping your kids with a home deposit today might mean they stop renting and finally own a place to raise their children. Helping pay for your grandchild’s school fees might give them better opportunities. Supporting a family business might lift them out of financial stress.
In fact, the University of Melbourne published a study showing that families can experience significant long-term benefits when parents use home equity to support their children early—especially when combined with proper financial planning.
Real Stories, Real Reasons
Every family is different, but here are just a few ways we’ve seen people use a Reverse Mortgage to help their kids:
- 💰 Giving a living deposit – so a child can finally buy a home.
- 🎓 Helping with education fees – whether it’s a university degree or private school for the grandkids.
- 💼 Supporting a family business – giving them the boost they need to grow.
- 😌 Debt relief – easing the burden of credit cards or loans during tough times.
And perhaps most important of all—you get to be there to see it happen.
“But What About Inheritance?”
This is the big question, right?
Many parents worry that using home equity now might reduce what they can leave behind later. That’s a fair concern. But more and more families are having open conversations and coming to the same conclusion:
It means more to help now, when it can make a real difference.
Plus, modern Reverse Mortgages in Australia come with strong protections—like the No Negative Equity Guarantee, which ensures that you or your estate will never owe more than the value of your home when it’s sold.
[ ALSO READ: Balancing Legacy and Financial Stability: Will a Reverse Mortgage Affect My Kids’ Inheritance? ]
A Gentle Reminder: Plan It Well
Of course, a Reverse Mortgage isn’t something to jump into blindly. You’ll want to think carefully about:
- How much equity you want to access
- The impact on future aged pension eligibility (especially if you’re taking a large lump sum)
- Discussing your plans with your family
- Getting advice from a licensed financial adviser
Done right, this can be a win-win for everyone involved.
Want to learn more about Reverse Mortgage? Find out more about how to use a Reverse Mortgage for debt consolidation or download your FREE REVERSE MORTGAGE GUIDE.
Ready to Apply? You can now check your eligibility online or call Seniors First on 1300 745 745.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial advisor before you make any decision.