A powerful financial strategy for business owners approaching retirement.
Australians are known for our entrepreneurial spirit, and it shows: nearly 2.2 million people (around 17% of the total workforce) are self-employed. And of that, nearly one third – or about 730,000 – are over 55 years of age, according to the Association of Superannuation Funds of Australia (AFSA).
From tradespeople and small business owners to consultants and freelancers, these individuals have built their lives on independence, resilience, and hard work.
But what happens when you’re over 55 and it’s nearing the time to retire?
Unlike employees who benefit from compulsory super contributions throughout their career, many self-employed Australians reach retirement age with limited superannuation.
According to the Australian Taxation Office, the average super balance for self-employed people is almost half that of PAYE employees. That means a significant number of Australians may retire asset-rich (owning a home) but cash-poor and are really struggling to cover daily living expenses, pay off debts, or wind down a business.
If you’re self-employed and nearing retirement, a Reverse Mortgage could be a vital part of your financial strategy.
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Reverse Mortgage: Access To Cash, Without Regular Repayments
A Reverse Mortgage is a type of loan that allows Australians aged 55 and over to access some of the equity in their home. Unlike traditional loans, there are no required repayments* while you live in the home. The loan is repaid later, usually when the property is sold, or you move into aged care or pass away.
For self-employed retirees, this product can offer financial freedom, breathing space, and a smoother transition into retirement without having to sell the home you’ve worked so hard to build.
Why Equity Release Matters for the Self-Employed Pre-retirees
Here’s how a Reverse Mortgage can be used to tackle real-world challenges that self-employed Australians face in retirement:
How a Reverse Mortgage Helps Self-Employed Australians over 55 years
| Benefit | Details |
| Cash flow relief | Many self-employed people don’t have the same superannuation savings as salaried employees. A Reverse Mortgage can provide steady funds to cover living costs, bills, or medical expenses without needing to sell the home. |
| Supplement reduced income | If business income slows down before retirement, home equity can act as a safety net, filling the gap until Age Pension or other income streams kick in. |
| Paying out business debts | Some self-employed retirees need to wind down their business and settle outstanding debts such as business loans, credit cards, or tax obligations. A Reverse Mortgage can help clear these final liabilities, reducing financial stress and allowing a fresh start in retirement. |
| Flexible use of funds | The money can be drawn as a lump sum, regular income, or a cash reserve. This flexibility can help pay down debts, upgrade equipment if the business is still running, or simply make life more comfortable. |
| Stay in the family home | Instead of selling and downsizing early, a Reverse Mortgage allows self-employed retirees to remain in their home and community while still accessing their wealth. |
| No regular repayments | Unlike business loans or credit cards, a Reverse Mortgage doesn’t require monthly repayments. This is particularly helpful for those whose cash flow is unpredictable. |
| Tax-free funds | The money released from a Reverse Mortgage is not considered taxable income, which can be very useful for those still managing tax obligations from business activity. |
| Bridge to retirement | For those not ready (or able) to fully retire, a Reverse Mortgage can provide breathing space to transition gradually, rather than selling assets in a hurry. |
An Alternative ‘Exit Strategy’ for Business Owners?
For many self-employed people, retirement isn’t a sudden event: it’s a slow wind-down. You may want to reduce your workload, transition clients, or close down operations, but still have debts to pay or cash flow gaps to manage. Traditional loans often require ongoing repayments, which can add pressure at a time when income is uncertain.
For homeowners aged over 55 years, a Reverse Mortgage can allow you to tap into the wealth you’ve built in your home without needing to sell or make immediate repayments.
A Bridge, Not a Burden
One of the common misconceptions about Reverse Mortgages is that they’re a last resort. In fact, they can be a strategic tool, especially for self-employed individuals who need time to transition, deal with debt, or simply retire on their own terms.
Unlike selling your home or taking out a personal loan, a Reverse Mortgage keeps you in control. You decide how much equity to access, how to use the funds, and when to retire fully. And because the funds are tax-free, it won’t affect your Centrelink entitlements in the same way income might.
Why You Need a Specialist Broker for a Reverse Mortgage Loans
Applying for a Reverse Mortgage is never a one-size-fits-all process especially if you’re self-employed. From verifying irregular income and navigating tax obligations to understanding how business debt affects loan eligibility, the journey can be complex and time-consuming.
That’s why working with a specialist broker like Seniors First is critical.
Unlike general lenders or bank staff, our team has a deep understanding of the unique challenges faced by self-employed Australians. We guide you through every step: from structuring your loan to suit your retirement lifestyle, to identifying lenders who may still require limited repayments depending on your chosen product.
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But it’s not just your circumstances that require expert guidance—it’s the market itself.
Our research has revealed that Australia’s top four Reverse Mortgage lenders differ in over 150 ways. These differences span loan features:
- interest rates and drawdown options
- hidden credit policies (such as how funds can be used or gifted)
- post-settlement processes (like redraw flexibility or rate pass-throughs)
Most of these critical details aren’t published online, and choosing the wrong lender could lead to delays, rejections, or long-term costs.
With Seniors First, you don’t just get access to more lenders. You get the right lender, the right product, and the right support to make one of the most important financial decisions of your retirement.
Don’t go it alone. The decisions you make today will shape your quality of life tomorrow. Let our experts help you get it right, from the start.
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.
*Some lenders may still require partial or regular repayments depending on your loan structure.)