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What is a Seniors First Reverse Mortgage

Learn how does a Reverse Mortgage work and more

FREE guide from Seniors First. Downloaded by thousands of Australians since its introduction in 2008.

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What is a Reverse Mortgage

Reverse Mortgages are loans for pensioners and retirees designed specifically for older borrowers who are typical ‘asset rich’ but ‘cash poor’. 

Known variously as ‘senior’s loans’, ‘reverse home loans’, and ‘senior’s finance’, Reverse Mortgages are the most popular form of home equity release in Australia.

Reverse Mortgages allow people from the age of 55 to convert the equity in their property into cash for any worthwhile purpose. No income is required to qualify. 

Although interest is charged like any loan, the borrower is not required to make repayments (although they can usually make voluntary payments if they wish).

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Reverse Mortgage cost considerations

Here are the things you need to consider before you take out a home equity loan:

  • Your loan balance will increase over time because the interest is calculated on the daily balance outstanding and added every month to your account.
  • If you move out permanently from your property, the whole loan is payable within one year.
  • Your age, property value and other lender approval criteria affect the percentage of equity you can unlock.
  • Drawing funds from your home equity today may reduce what you can access later.
  • Most Seniors First Reverse Mortgages are on variable interest rates, which means the charges will change over time
  • There are fees in setting up Reverse Mortgage depending on the terms and features you choose. 

What are the benefits of a Reverse Mortgage

Cash for Retirement

You can use the money for almost anything that will help you enjoy your golden years.

No Need to Move Out

Stay in your home for as long as you want 

Retain Ownership

Any potential increase in property value will still be in your name.

No Monthly Repayments

You may choose to pay the loan from the future sale of your home.

No Negative Equity Guarantee*

You and your home are protected subject to T&Cs.

Flexible Drawdown Options

You can access the loan as a lump sum, cash reserve, or regular income.

What’s the difference between Reverse Mortgage and standard mortgage?

A Reverse Mortgage has the following qualities:

  • Increases overtime – the loan balance increases as interest is added to the outstanding balance, unlike standard mortgage where the loan balance decreases as you make repayments.
  • It is protected by ‘no negative equity guarantee’ – i.e., despite the compounding interest, your debt payable under Reverse Mortgage cannot exceed the value of your home.
  • Higher interest rates – Unlike standard mortgages, Reverse Mortgages generally have slightly higher interest rates because there is lesser competition in this sector. Also, the lender may not receive any capital back for decades, so a slight premium on the rate applies.
  • Lenders only provide up to 45% of property value, depending on your age – this is because of longevity risk and to allow a buffer for the possible long-term effect of compounding interest. 

What our clients say...

Josie S. profile picture
Josie S.
02:02 09 Jan 26
Seniors First provided plenty of information on the concept of reverse mortgages, also referring us to the government website, for calculators showing scenarios of how the loan and house value would progress. Richard Chapman answered all our quesions in a clear, easily-understandable way and guided us through the process, to ensure that we and our children fully understood how reverse mortgages operate. With Richard's experience we were able to find a lender that suited the kind of loan we would need. We could see that the reverse mortgage would allow us to remain in our own home, and have funds available if needed later for aged care, without selling our home of 25 years and moving away. All in all, a very satisfactory experience with Richard and Seniors First.
Gavin and Josie Swallow
mark T. profile picture
mark T.
01:31 30 Dec 25
I am very happy to recommend Seniors First Reverse Mortgage Brokers, especially Palka as she has been very polite and efficient in all aspects of this process. Always ready to explain thoroughly any questions or doubts I may have had and always with a friendly /no trouble response. Cannot recommend these folk enough,
Cheryl M. profile picture
Cheryl M.
01:38 27 Dec 25
Negotiating a Reverse Mortgage with Adam Oakley was considerably easier than we expected.
Adam was quick to allay our hesitance in dealing with an interstate broker and subsequent technological challenges including biometric ID.
Adam provided sound advice on the product best suited to our circumstances and maintained regular contact with us ensuring we were comfortable with the process and updating us on the progress of our application.
We researched reverse mortgages before committing and were impressed with Seniors Firsts webinars, FAQs and online information.
We look forward to maintaining contact with Seniors First and Adam in forthcoming years in reviewing our loan to ensure that it meets our future requirements.
Ian Y. profile picture
Ian Y.
02:16 25 Dec 25
I did quite a bit of research on reverse mortgages and also watched at least 6 webinars on line before contacting Seniors First. I was put in touch with one of their brokers (Palka Kumar). She was very professional and knowledgeable about the whole process of setting up the reverse mortgage. I live in Tasmania but this was not a problem and in a matter of weeks everything was approved - I had the ideal criteria for this product and my wife and I are extremely pleased with the entire way the business was conducted. Seniors First know what they are doing and we thank you for all your assistance.
Marg B. profile picture
Marg B.
04:51 17 Dec 25
My husband and i have recently used Seniors First for securing a loan for the purchase of a new car. We were lucky to be assisted by Palka who has been wonderful since we first made contact wirh Seniors First. Palka has been incredibly helpful, has explained very clearly what we need to do, and has "held my hand" on several occoasions. Grateful thanks to Palka for her dedication to her clients.
Christine T. profile picture
Christine T.
02:08 16 Dec 25
Very good company to deal with. The consultant Adam Oakley was excellent. He was transparent and informative, polite and attentive. Could not recommend highly enough. He made a difficult situation easy and helped us old guys through the technology.
Nigel C. profile picture
Nigel C.
07:33 10 Dec 25
Thank you, Angela, for your great support in helping us secure a Reverse Mortgage.
You were professional and knowledgeable in all our dealings and kept us in the picture at every stage of the process to ensure a smooth Reverse Mortgage journey.
You also clearly communicated all the options available on Reverse Mortgages so we could make fully informed decisions.
Most importantly, you quickly responded to and answered all our questions ( and there were many ! )
We strongly recommend Angela at Seniors First to all potential clients.
Anthony L. profile picture
Anthony L.
00:14 10 Dec 25
Right from the beginning Palka Kumar was fantastic. She ensured that we really understood the process, kept us informed, provided the appropriate links. Ensured that we ticked all the right boxes etc.
nothing was too much trouble
Her high level of professionalism and empathetic manner was always reassuring and for that we were fortunate to have her as our broker
brian C. profile picture
brian C.
02:49 09 Dec 25
Not knowing where to start refinancing our Reverse Mortgage, we saw Seniors First add and decided to try them for a starting point. We were lucky enough to have Adam Oakly assigned to our case. He did research & found the most suitable Reverse Mortgage lender that suited our cause. Adam was a great help & kept in contact until our loan was approved. Seniors First & Adam did a great job! Would most definitely recommend them. Brian & Pat.
Ray and Carolyn D. profile picture
Ray and Carolyn D.
00:35 09 Dec 25
We were/are clients of Palka Kumar. We were impressed with her friendly nature and boundless knowledge of the industry. We had a number of Tele-conferences with her as she guided us through the process and let us know from the outset that she was with us the whole way through to conclusion. Palka was always available to answer any questions and kept us informed as the process went through the various stages. We have nothing but praise and appreciation for Palkas commitment to her clients. She always made us feel assured and relaxed about a sometimes daunting process. Outstanding.
Tina profile picture
Tina
19:01 28 Nov 25
Andrew was very helpful and patient when it came to applying for our reverse mortgage on line. He always made us feel like we had his whole attention and never kept us waiting when we had any queries or problems with the forms. Would recommend him to anybody.
Kim B. profile picture
Kim B.
18:57 27 Nov 25
We recently worked with Seema at Seniors First - Reverse Mortgage Brokers and her service was EXCEPTIONAL! She explained the process clearly, kept us informed every step of the way, and ensured we were comfortable with the progress of our application. Thanks to Seema, we achieved a great outcome! Highly recommend Seniors First and Seema - thanks for making a big decision feel easy!
Lynn F. profile picture
Lynn F.
07:19 27 Nov 25
From the moment we called and spoke with Adam Oakley at Seniors First about a reverse mortgage, we were made to feel very comfortable with his warm, but honest approach. We were able to ask questions without feeling pressured and the amount of knowledge and information Adam shared with us, made the decision making so much easier. Another valuable trait of Adam’s is in his communication. He shared his direct line with us and when he wasn’t available, always returned our calls and answered emails promptly.
Adam walked us through each step of the process with ease, and we never felt alone at anytime. His recommendations were professional and unbiased and we didn’t hesitate to listen to his advice. I don’t know of any other bank or financial institution that would take the time and so much care, to ensure that their clients were happy. We certainly are, we can’t recommend Adam Oakley at Seniors First enough. It was a very big, life changing decision we had to consider and we feel grateful to have found Adam to see it through with us. Once again, thank you Adam for your time and patience. We couldn’t be happier. You are a true professional.
Jodie M. profile picture
Jodie M.
01:44 24 Nov 25
I recently applied for a Reverse Mortgage through Seniors First and would have to say it was the easiest loan I have ever got in my life.
Between Seniors First and my Broker Adam Oakley they made the whole application from start to finish a breeze.
The Professionalism and Guidance I got from Adam to make sure I understood everything before he advised on the right product that best suited me.
I would highly recommend Seniors First and Adam to anyone interested in a Reverse Mortgage.
Mike Wilton (. profile picture
Mike Wilton (.
01:32 24 Nov 25
Palka Kumar assisted us through the whole process, to its completion. She was brilliant. Without her assistance, the application would have been so difficult. But she guided us at every step to completion. What wonderful service - always available with wise advice, and encouragement along the way. Thank you Palka for your counsel and help. Mike and Loris.

Frequently asked questions

How much can I borrow?

The amount of money you can borrow from a Reverse Mortgage loan depends on the property value and age.

Once the current market value of your property has been estimated by an independent valuer (appointed by the lender), a maximum percentage called the loan-to-value ratio (LVR) is applied to that value based on the applicant's age. 

These ratios are very conservative by conventional standards, and this acts as an inbuilt protective mechanism for both the lender and the borrower.

The older you are, the higher the amount you can borrow. Some lenders will increase the Loan Value Ratio by 1% with each year lived. If you are a couple, the maximum amount you can borrow is usually based on the age of the youngest borrower.

For example, Bob is 71 and his wife Jane is 68, and both are receiving the full government pension. They've decided they want to buy a new car and take a holiday.

If possible, they also want an ongoing, additional income that won't reduce their pension.

Although they bought their home 30 years ago for $60,000, it is now worth $500,000. Based on Jane's age of 68, they can access a maximum of 18% of its current value, which means they can borrow a total of $90,000.

How much will it cost?

Allow about $1,500 – $2,000 in total to establish your Reverse Mortgage loan.

This amount includes the main costs such as the lender application fee, government charges, legal advice fees, and any broker fees. 

This is an estimate only; you could pay more depending on the circumstances. If you are low on cash, you can usually pay these Reverse Mortgage costs from the loan proceeds.

What is a credit line growth feature?

Reverse Mortgage lenders now offer a ‘line of credit’ option. 

This is a very positive development that empowers the borrower with complete control over when they take the funds and how much.

You can have all the funds available all of the time, but you attract ZERO interest until you need to use it, and then only on the money you draw. This is great for emergencies and unexpected costs.

What happens to my home when I pass away?

The Reverse Mortgage loan is due for payment when you pass away. If your estate or heirs cannot pay the loan, the lender may put the property on sale. 

Interestingly, all Reverse Mortgage lenders are now required by law to provide a guarantee that should the debt grow to such level over time that it exceeds the value of the security property realised at the sale. Neither the borrower nor beneficiaries of the estate can be pursued for this shortfall after the sale has been concluded (as long as the borrower is not in default of the loan contract).

Put simply, if the sale of the security property is not enough to cover the debt, the lender wears the loss.

In addition, the lender cannot force the borrower from the property if they think the debt may have grown to a level where a shortfall may occur.

What are the alternatives to Reverse Mortgage?

If you wish to access the equity in your home, the main alternative to Reverse Mortgage is still to sell and downsize your home. However, such a transaction will necessarily incur substantial transfer costs such as stamp duty and agent fees, and you may be required to move away from your neighbourhood into a cheaper suburb.

Other product alternatives to Reverse Mortgages are emerging increasingly.One alternative is the ‘home reversion schemes’ where you can sell a share of your home in return for cash. This may allow you to stay in your home without selling or accumulating debt.Home reversion schemes in Australia are not yet widely available. To enquire about home reversion schemes and other alternatives to reverse mortgages, complete this form.

Will a Reverse Mortgage affect my Centrelink pension?

It is possible in many cases to structure your Reverse Mortgage or equity release plan so that it does not reduce the amount of pension income you currently receive. However, the outcome will depend on your individual circumstances and Seniors First is not permitted to advise you in this regard. ALL borrowers in receipt of government pension are directed to speak with a Financial Information Services officer at a Centrelink office before applying.

Will I be able to leave equity for my children?

Some lenders offer an option called ‘Protected Equity’, which guarantees that a requested proportion of equity is preserved for beneficiaries (it also means you can’t borrow as much). If you choose a loan without protected equity, then the amount of equity you will leave will be determined by the following factors:

  • The term of the loan/how long you live
  • Interest rate movements
  • Growth rates in the value of your property

Although the interest will accumulate and compound, based on the past trends, your property should also increase in value over time, offsetting the increasing loan balance.

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