If you’re exploring a Reverse Mortgage, one of the most important people you’ll meet is your broker. They’re your guide through what can feel like a complex decision. So it’s worth asking the right questions, understanding what good support looks like and making sure you feel comfortable and confident before you sign anything.
Why your broker matters
A good broker doesn’t just fill out forms. For older Australians, they become a partner who helps you:
- understand how a Reverse Mortgage works (and how it might impact your retirement and your family)
- compare different lenders and find one that suits your home, your age, your needs
- walk you through the costs, interest, the “what‐ifs” (moving into aged care, passing away, selling the home)
- support you in a way that feels clear, caring and trustworthy.
As the government website MoneySmart says: “Talk to someone qualified and independent who can help you make an informed decision.”
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What you should expect from your mortgage broker
Here are a few things a solid broker should deliver for you:
- They should explain in plain language how the Reverse Mortgage will work in your case (how much you might borrow, what the cost will be, how the debt builds).
- They should show you projections — how the loan balance and home equity might look in 5, 10 or 20 years.
- They should discuss the impact on your Age Pension, Centrelink benefits, estate and inheritance.
- They should evidence that they’ll work in your best interest, not just push the deal. For example, specialist reverse‐mortgage brokers highlight they “… are bound by law to act in the best interests of borrowers”.
- They should be transparent about fees and costs — both theirs and the lender’s, including establishment fees, ongoing costs, valuation costs etc.
- They should treat you respectfully, give you time to ask questions, speak with family if you like, and not rush you.
If any of these are missing (or you feel uneasy) that’s a sign the broker is not experienced in Reverse Mortgages. It may be best to look elsewhere, and go with a specialist.
Key Questions to Ask Before You Sign
To help you, here’s a list of questions you should ask your broker (and the lender) before committing. You might like to take these with you:
- How much can I borrow based on my age and my home’s value?
Get an estimate of the loan amount and a clear explanation of how the lender reached that figure. - What will my interest rate be and how often does interest compound?
It’s very important to know how quickly the debt can grow.
- What are all the fees I’ll pay — setup, ongoing, valuation, exit?
Make sure anything added to the loan is clearly disclosed so you can see the full impact on the home equity. - How and when must the loan be repaid? What triggers repayment?
Ask about the events that will require repayment (selling, moving into aged-care, passing away, leaving the home).
- How will this affect my Age Pension, other benefits or Centrelink entitlements?
Since funds from your home may affect your financial position, you want to understand any consequences. - What happens to the loan if I pass away or move into full-time aged care?
Ask about how long your estate or family have to deal with the loan, whether the home must be sold, etc. - Can I make voluntary repayments or repay early, and is there a penalty?
Even though you’re not required to make monthly repayments, it’s good to know your options. - How much equity is likely to remain in my home after, say, 10 years?
Ask your broker to run a scenario for you, so you can see what you might still hold. - What are the risks I should be aware of?
Make sure your broker helps you understand what happens if interest rates rise, property value falls, or you sell unexpectedly. - Who will I deal with if I have questions later you, the lender, or someone else?
It’s helpful to know who your point of contact is, especially if your situation changes.
[ ALSO READ: Most borrowers choose Mortgage Brokers. 3 reasons why Australian seniors should too ]
Red flags you should not ignore
- If the broker pushes you to sign quickly without giving time for review or talking with family.
- If fees or costs are not clearly disclosed up front.
- If they cannot explain how the loan affects your estate or pension.
- If there’s a sense you’re being sold a product rather than helped to find the right
- If they cannot provide independent legal/financial advice referrals or make you aware of them.
Use a specialist Reverse Mortgage broker
You’re doing something big: using your home’s value to support your retirement. That deserves good advice, questions, time and clarity. A specialist Reverse Mortgage broker helps you feel like you understand, have retained control and aren’t walking into something you wish you’d asked more about.
When you and your family sit down with your broker, use the questions above as your guide, and don’t be afraid to take time. The best outcome will be that you invest in your retirement and feel secure about your home, your lifestyle and your legacy.
Ready to Take the Next Step?
If you’re thinking about a Reverse Mortgage, but you’re unsure of what to ask or where to start, we at Seniors First are here to help. We’ll walk you through what good advice looks like, help you prepare your questions and put you in touch with trusted specialist brokers.
Want to learn more about Reverse Mortgage? Find out more about how to use a Reverse Mortgage 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