Frequently Asked Questions

There are two main challenges when it comes to getting a home loan at 60.

The first is your ability to make repayments, especially once you retire. If you’re already retired and on a fixed retirement income, lenders view this as a higher risk because you may have difficulty meeting repayments. Consequently, if they lend at all, the bank is likely to charge you a higher rate of interest than those advertised.

Secondly, most home loans are repaid over a term of 25-30 years. Your age will be a significant factor in how the bank assesses your application. It’s likely that the bank will want you to demonstrate how you will repay the loan with an ‘exit strategy’, which generally means a commitment to sell the property or pay out the mortgage from your superannuation or other retirement savings. That means less money for retirement.

It is important to remember that all lenders are required by law to ensure that finance provided to you does not adversely impact your financial situation.

Most banks will not extend credit to retirees, whether through a home loan, a line of credit or credit cards. Lenders are required by law to ensure you can comfortably meet any repayments; if those repayments are likely to cause you financial hardship, they cannot provide you with finance.

Other options for finance when you're retired include a reverse mortgage or the government's Home Equity Access Scheme (HEAS). Both provide a mechanism to draw on your home equity and do not require regular repayments.

Household Capital was founded to help Australians over 60 overcome financial barriers. We enable you to unlock the wealth in your home to meet your current and future needs, and to live with security and comfort in retirement.

Most equity release products are governed by the National Consumer Credit Protection Act 2009; these protections apply to our Household Loan and other reverse mortgage products.

1. You remain the owner of your home and the title remains in your name. This gives you 100% exposure to any growth (or loss) in the value of your property, into the future.
2. You can stay in your home as long as you want to – you have guaranteed occupancy. You cannot be removed from your home by the lender, nor be forced to sell your home at any time against your will, as long as you have met your obligations under the loan, as specified in the terms and conditions of the loan contract.You do have a responsibility to remain living in your home, to ensure the council rates are paid, to keep it insured and to keep your home well maintained.
3. You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.

A Household Loan can provide a regular income stream, capital - or both! We provide flexibility and choice so you can use your money in a way that best enhances your long term retirement funding. Taking the money only as you need it will minimise the interest accrued over the life of your loan.

Each type of equity release product has a different cost structure, which is why it’s important to do your research and seek advice where required.

In terms of our Household Loan, we offer a consistently low rate for a reverse mortgage product in Australia.

Your remaining home equity at the end of your loan is a factor of the initial LVR, interest rates, growth in home values and the term of your loan. In most situations, you will likely retain a reasonable proportion of equity to bequeath to your children.

What is a Household Loan? A Household Loan is our innovative approach to borrowing against home equity for responsible, long-term, retirement funding. It is a type of reverse mortgage, which allows you to borrow money using the equity in your home as security. Interest is charged like any other loan, but you don’t need to make regular repayments while you live in your home.

The loan must be repaid in full when you sell or leave your home or, in most cases, if you move into residential aged care. Please see the Reverse Mortgage Information Statement for more information.

To find out more about reverse mortgages, including a reverse mortgage calculator to help you work out how much equity you may have in the future, visit the Australian Securities and Investments Commission’s free consumer website at www.moneysmart.gov.au.

Our Household Loan has a variable interest rate and changes in line with the RBA's cash rate. Up-to-date information about our current rate is available here.

Your remaining home equity at the end of your loan is a factor of the initial LVR, interest rates, growth in home values and the term of your loan. In most situations, you will likely retain a reasonable proportion of equity to bequeath to your children.

Yes. You may repay part or all of your Household Loan at any time, without penalty.

Once the last homeowner has passed away, the loan is settled by the estate within 12 months.

Your children and/or estate has 12 months to pay out the loan.

The amount you can borrow is dependent on the Loan to Value ratio (LVR). For a Household Loan, the calculation takes two factors into account – the age of the youngest borrower and the value of your property.

The percentage of equity you can access is regulated by the National Consumer Credit Protection Act (NCCP).

Household Capital’s LVR starts at 20% of the agreed property value for those aged 60 and increases 1% per year thereafter. Total remaining equity is a factor of the initial LVR, interest rates, growth in home values and term of your loan. In most situations, you will likely retain a reasonable proportion of equity to bequeath to your children.

Our focus is on providing responsible, long term retirement funding. While a Household Loan can be used to fund travel as part of a broader retirement funding plan, we don't lend solely to fund holidays.

There are so many ways a Household Loan can transform your retirement. Here are a just few:

• It can act boost your regular income so you can do more with retirement
• You can use it to top up super or other investments
• You can help your kids get onto the property ladder
• You can help pay your grandkids education expenses
• If you have a bank mortgage, you can repay it and improve your cash flow
• You can renovate or modify your home to get it retirement ready
• Comfortably cover medical costs, health insurance and other bills
• Pay for your choice of in-home or residential aged care

Yes. A Household Loan can be used to pay for your in-home care requirements, giving you greater choice and flexibility in terms of the services you can access.

Household Capital requires you to get appropriate legal advice to ensure you understand your rights and obligations and to confirm that a Household Loan is right for your circumstances.

If you are using your home equity to top up your super or other investments, you are required to obtain financial advice. This will help you determine how best to deploy your home equity to ensure improved long-term retirement funding. A financial adviser can also help structure your financial affairs to maximise your entitlements to the Age Pension.

The Age Pension is an important source of income for many retired Australians. We can work with you to understand how a reverse mortgage can be used to preserve your pension entitlements and always recommend you speak to Centrelink to ensure your entitlements aren’t affected.

Learn more about interest rates and fees.

A Household Loan is a type of reverse mortgage, so you benefit from key structural and legislative protections.

Ownership

• You remain the owner of your home (and benefit from any increase in property value)

Lifetime Occupancy

• You can stay in your home for as long as you want to.

No Loan Repayments

• There is no requirement for you to make periodic loan repayments (although you can do so at any time without penalty). The loan becomes repayable when you leave your home.

No Negative Equity Guarantee

• You cannot end up owing us more than your home is worth.

The youngest borrower has to be aged 60+.

A reverse mortgage does not have to be repaid until you sell your home, in which case it is paid as part of the settlement process. If you remain in your home until you pass away, your estate has 12 months in which to pay out the loan.

The short answer is no. Reverse mortgages in Australia are governed by the National Consumer Protection Act 2009.

You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.

Several banks provide lines of credit or home equity loans that allow homeowners to access the wealth built up in their property. However, getting credit from the banks has become tougher for retirees since the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Any form of credit has become less available to retirees who may not have the income to demonstrate they can meet the required repayments. The regular repayments needed to service a home equity loan or line of credit are likely to reduce your cash flow and therefore diminish your retirement income. As interest rates increase, so will these regular repayments. Each month, you may have to find the funds to satisfy the bank.

Many retired Australians tell us they feel insecure knowing their home is subject to repossession in the event of being unable to meet repayments. With a reverse mortgage, you don’t need to make regular repayments, although you can choose to do so. And whatever choice you make, you have guaranteed lifetime occupancy – you can stay in your home for as long as you choose.

Reverse mortgages are governed by the National Consumer Credit Protection Act 2009; these protections apply to our Household Loan as well as other reverse mortgage products.

1. You remain the owner of your home and the title remains in your name. This gives you 100% exposure to any growth (or loss) in the value of your property, into the future.
2. You have guaranteed lifetime occupancy. You cannot be removed from your home by the lender, nor be forced to sell your home at any time against your will, as long as you have met your obligations under the loan, as specified in the terms and conditions of the loan contract. You do have a responsibility to remain living in your home, to ensure the council rates are paid, to keep it insured and to keep your home well maintained.
3. You cannot end up owing us more than the house is worth. The “no negative equity guarantee” (NNEG) clause, introduced in 2012, means you are protected by law and cannot owe more than your home is worth, irrespective of the value of the property.

Your reverse mortgage loan is generally repaid from the future sale of your home. This may occur if you downsize later in retirement or move into residential aged care. Alternatively, the loan will be paid from the proceeds of your estate. Of course, you can repay the loan at any time without penalty.

Wondering how to use the equity in your home? Our customers have approached us with a diverse range of needs. These include:

• Setting up a regular fortnightly or monthly income facility
• Refinancing an existing mortgage
• Renovating or modifying their home to ensure it’s retirement ready
• Covering an unexpected medical expense
• Buying a new car
• Helping children or grandchildren buy their first home
• Funding in-home care expenses
• Funding the transition to residential aged care.

We find many of our customers simply like the security that comes from having a contingency fund for those unexpected expenses that can crop up from time to time.

The purpose of taking out a reverse mortgage loan is to improve your long-term retirement funding; it enables you to access the savings in your home without needing to sell it. That way, your home can be the best place to live and the right way to fund your retirement.

Eligibility criteria for a reverse mortgage is as follows:

• The youngest borrower must be age 60+
• Australian homeowner
• The minimum property value of $600,000
• Property must be in an eligible postcode
• Primary residences, holiday homes and investment properties are available for security.

The key benefit of a reverse mortgage is to improve your long-term retirement funding. This, in turn, enables you to:

• Access capital or income - or both
• Establish a contingency fund
• Improve your retirement lifestyle
• Remain living in your own home
• Look forward with confidence

Most importantly, a reverse mortgage allows you to enjoy the retirement you’ve worked hard for.

A reverse mortgage allows you to access the equity in your home through a loan facility that doesn't require repayment until you vacate the property.

The amount you can borrow is a function of your age and the value of your home. The older you are, the more you can borrow. The Loan to Value ratio - or LVR - increases by 1% for each year older than 60.

As a guide, if you're aged 60, the maximum amount you can borrow is 20% of the value of your home and if you're aged 75, the maximum amount you could borrow would be 35%.

Originally launched in 1985 as the Pension Loans Scheme, the program was rebranded as the Home Equity Access Scheme (HEAS) on 1 January 2022. This update expanded eligibility to all Australians of Age Pension age, including self-funded retirees, regardless of their pension status.

Through HEAS, eligible borrowers can access up to 150% of the maximum Age Pension (less any pension payments currently received). These funds can be distributed as a consistent fortnightly income stream or a limited lump sum paid twice yearly.

The Australian government is the provider of the Home Equity Access Scheme and the Scheme is administered via Services Australia/Centrelink or the Department of Veterans Affairs (DVA) where applicable.

Most Australian homeowners 67 and over will be eligible. However, eligibility has a broader criteria, which includes:

• Age: You (or your partner) must be of Age Pension age
• Ownership: You or your partner must own real estate in Australia that can be used as security for the loan
• Insurance: The property must have adequate and appropriate building insurance
• Title: Your name (or your partner's name) must be on the property title
• Solvency: You (and any co-owners of the property) cannot be bankrupt or subject to a personal insolvency agreement
• Agreement: You must agree to the terms and conditions, which include the government placing a charge or caveat on your property title as security for the loan.

Pension Boost is a subsidiary of Household Capital and has a team which are specialists in applying for the federal government’s Home Equity Access Scheme. The team acts as your agent when dealing with Centrelink or DVA to streamline the application process.

Some of the ways Pension Boost could assist you include:

• Educating you on what the HEAS is, its ‘rules’ and how it works
• Assisting you and your family determine whether the HEAS may be of benefit to you
• Assisting you with your HEAS application
• Streamlining the application process by dealing with Centrelink/DVA and acting as an ‘agent’ on your behalf
• Dealing with any questions or queries raised by Centrelink/DVA
• Providing ongoing reporting and reviews.

The HEAS is a government administered home equity scheme that is operates in the same way as a reverse mortgage. However, unlike a reverse mortgage, it is not governed by the National Consumer Credit Protection Act 2009, although it does have a 'no negative equity guarantee'. Commercial reverse mortgages are generally more flexible in terms of the amount of income and capital available to borrowers.

No. HEAS is a ‘reverse mortgage like’ scheme, but unlike a commercial reverse mortgage, it is not governed by the National Consumer Credit Protection Act 2009. It does have a 'no negative equity guarantee', which was applied to the HEAS from 1 July 2022 (and which has applied to commercial providers since 2012).

No. Rather than a full registered mortgage, the government secures its Home Equity Access Scheme loan to you via a ‘registered lien’ or ‘registered charge’ over the property used as security.

You can use your fortnightly HEAS payments for any purpose you wish. This could be to pay regular bills, keep up with the rising cost of living or simply enjoy life’s little luxuries - whatever best suits your lifestyle and circumstances.

The HEAS now provides a lump sum option which works like an advance payment and is available to all HEAS borrowers including existing borrowers.
The maximum lump sum you can access in a twelve month period is 50% of the full annual age pension which (as at 20 March 2026) is:

• Couples lump sum maximum – $23,535.20
• Singles lump sum maximum – $15,611.70

If you draw a lump sum from the HEAS this will reduce your HEAS fortnightly payments over the next 12 months.

Examples:

1. Couple on the full age pension wishes to access $13,000 as a lump sum and draw the maximum HEAS payments. Their maximum HEAS payments of $905.20 / fortnight will be reduced by $500 ($13,000 / 26). Over the year they will receive $23,535.20 in HEAS payments (being the current maximum for full age pension couples).
2. Single self funded retiree wishes to access maximum lump sum and HEAS payments. Their lump sum of $15,611.70 will reduce their maximum HEAS payments of $1801.4 / fortnight by $600 ($15,611 / 26). Over the year they will receive $46,835.10 in total HEAS payments (being the current maximum for a self funded single).

There is no obligation to make any repayments of the HEAS until you either permanently vacate your property or you, or your estate, sell the property. However, you can make voluntary repayments of some or all of the HEAS loan at any time without penalties or fees.

No. The HEAS now comes with a No Negative Equity Guarantee which means you –or your estate – will not be liable for a HEAS debt that exceeds the value of your property when it is sold.

Of course you can! You just need to ensure you communicate your changes to Centrelink/DVA or our Pension Boost team.

The HEAS includes options to:

• Draw the maximum payment or a lower amount
• Reduce or increase the payment amount (within the maximum permitted)
• Pause your payment for a period if you don’t need the funds
• Restart your payments if necessary
• Request a lump sum advance
• Select a ‘Requested Amount’

Pension Boost can assist you to manage your Home Equity Access Scheme loan to ensure you remain in control of your finances.

We recommend you discuss your situation with your family before considering applying for the HEAS. We are also happy to talk with them, if required.

A feature within the HEAS is the ‘Requested Amount’, an amount you can ask to be reserved for your future needs; this includes aged care or your estate.

The Home Equity Access Scheme is for all property owners. We have run thousands of scenarios for Australian retirees and the median home value is $500,000.

The Home Equity Access Scheme is a loan enforceable against your secured property. You need to repay the principal and accrued interest to the federal government when the last participant dies or if the property is sold, unless the loan is transferred to another property.

The Home Equity Access Scheme interest rate is currently 3.95%. The rate is set by the federal government.

While there are no establishment fees or monthly account fees, Centrelink may charge costs including legal fees. These costs are determined once the loan application is made and can be paid upfront or added to the loan balance.

Generally retirement villages and relocatable homes do not include a title over the land on which the dwelling/building resides. For this reason, the federal government does not accept these forms of property as security for the Home Equity Access Scheme.

No. The rule changes effective from 1 July 2019 expand the HEAS to be accessible to all Australian resident seniors who have sufficient equity in their property - including self-funded retirees.

If you are currently receiving the Age Pension or similar seniors welfare payment (or a DVA pension) and you own property in Australia, you will most likely meet the eligibility criteria.

To be eligible for the HEAS you (or if you are in a couple relationship at least one of you) need to meet the following criteria:

1. Meet Centrelink’s Australian residency requirements: You need to have been an Australian resident for at least 10 years in total. For the last five (5) of these years, there must not have been any break in your residency.

• You are an Australian resident if you live in Australia and are either: 1. An Australian citizen; or 2. A permanent residence visa holder; or 3. A protected Special Category visa (SCV) holder

2. Be at least of Age Pension Age which is currently 66 years old but increasing to 67 as shown below:

Age Pension Age Criteria

(note: at least one applicant must meet this criteria if applying for the HEAS as a Couple)

Born: 01/Jul/1954 to 30/Jun/1955 Age: 66 years

Born: 01/Jul/1955 to 31/Dec/1956 Age: 66 years and 6 months

Born: 01/Jul/1957 Age: 67 years

DVA pensioners please note:

The Department of Veterans Affairs (DVA) has an eligible age pension age of 60. If your are on a DVA pension please contact one of our HEAS specialists as our online HEAS calculator works off the Centrelink age pension age criteria.

3. Own real estate property in Australia which includes:

• Houses *
• Apartments / Units / TownHouses *
• Farm (or hobby farm)
• Commercial premises
• Retail premises
• Vacant land / bush block
• Home office / business
• Self contained flat (part of or attached to a residence)
• Market garden
• Residential block larger than 2 hectares

* There are two notable exceptions (due to not having title to the underlying land)

• Retirement villages
• Relocatable homes

No. Centrelink/DVA will arrange for an independent valuation of your property before your loan is approved. Centrelink/DVA pay for this valuation and not the applicant(s).

If you disagree with the Centrelink/DVA valuation you can request another valuation.

Provided you meet the residency, pension age and property ownership criteria then if your property is owned by a closely held private company or private trust then you are still eligible for the HEAS.

There may be additional forms that may need to be lodged in relation to the company or trust and the company or trustee will need to provide a written guarantee in relation to the HEAS debt.

Provided you meet the residency, pension age and property ownership criteria if your property is co-owned with a third party then you are still eligible for the HEAS but only for your relevant pro-rata share of the net equity in the property.

The co-owner(s) need to consent to your applying for the HEAS and they must sign their section of the HEAS application in front of a suitably qualified witness (eg Justice of the Peace).

Approval of a Home Equity Access loan application is made in writing by Centrelink / DVA and this usually occurs in 10 - 14 weeks, depending on the complexity of the application.

You will need to provide copies of the below when you start your HEAS application:

• Your property Title Deed or Certificate of Title; and
• A recent Land Valuation Notice or Council Rates Notice; and
• Your current insurance policy over the property; and

If you have an existing loan secured over the property, you also need to provide copies of a:

• Recent loan statement
• Loan contract

No. Rather than a full registered mortgage the government secures its Home Equity Access loan to you via a ‘registered lien’ or ‘registered charge’ over the property you put up as security for your Home Equity Access loan.

No problem - just select the level of payments you need each fortnight. You can always change the level of payments by notifying Centrelink/DVA. Household Capital can assist you to determine the level of Home Equity Access loan that you’d be comfortable with.

No. Whilst the Home Equity Access Scheme is linked to the Age Pension (by the maximum payment level being tied to 150% of the Full Age Pension), accessing the HEAS does not impact your Age Pension entitlements.

No. The Home Equity Access Scheme is a loan-based payment scheme, drawing on the equity (capital) you have built in your home, so it does not impact your income tax position.

Generally retirement villages and relocatable homes do not include title over the land on which the dwelling/building resides, which is why the government does not accept these forms of property as security for Home Equity Access loans.

The term over which you could potentially receive payments under the HEAS is dependent on:

• The amount of any Age Pension (or similar welfare payment e.g. widows pension) you (or you and your partner - if applicable) receive
• The net equity (i.e. the value of your property less any loans secured by that property) you have in your property
• Your age, or the age of the youngest partner, if you’re in a couple relationship
• The amount of Home Equity Access loan per fortnight you wish to access
• The value of any Requested Amount (i.e. an amount of equity you always wish to keep in your property) you determine

Generally speaking, the older you (and/or your partner) are, and the higher the net equity in your property, the longer the Home Equity Access loan payments can be made.

When it comes to residential care, there are three main layers of cost:

• Basic daily fee, which is a flat fee paid by all residents to cover daily living expenses and is set at 85% of the single-person rate of the Age Pension.
• Means-tested care fee, which is an extra contribution that some people pay, as determined through a means assessment.
• Accommodation fee, which covers the cost of accommodation in the aged care residence and its maintenance.

If you or a loved one need to move into residential aged care, a Household Loan can be used to pay either the Refundable Accommodation Deposit (RAD) or Daily Accommodation Payment (DAP).

Yes. A Household Loan can be used to pay for your in-home care requirements, giving you greater choice and flexibility in terms of the services you can access.

Some of our customers have needed to make the transition to residential aged care. Refundable accommodation deposits (RADs) can be complex and expensive. For many, it may seem the only option available to fund aged care is to sell the family home. This may not be the best decision financially, emotionally or for your beneficiaries. Right now, your home is a non-assessable asset for your pension and a capped asset for assessing aged care fees. That could change if you sell your home. A Household Loan provides choice and flexibility. It’s particularly useful when one person is moving into residential aged care and the other wishes to remain in the family home. You can use your Household Capital™ to:

• Pay the RAD and broaden your care choices.
• Draw an income stream to pay the daily accommodation payment (DAP).

Whether it’s an upgraded room or a better quality facility, you can afford the care you deserve.

The ‘bank of mum and dad’ or BoMaD ranks as Australia’s tenth-largest lender according to the Australian Prudential Regulation Authority, accounting for more than $29 billion in funding for kids.

While you should get advice from your accountant specific to your circumstances, there could be implications if you lend money, depending on whether interest is payable. If that’s the case, that interest could be considered investment income and therefore taxable in the hands of the lending parent.

Before you give your kids money to buy a house or cover education expenses, be clear whether it’s a gift or a loan.

If it’s a gift and you receive the Age Pension (or other benefits), you must declare it to Centrelink. The annual limit for gifting is $10,000 (or $30,000 over five years depending on your situation)– anything above that may affect your entitlements for up to five years.

If it’s a loan, it can still impact your pension entitlements. If you lend your children money instead of gifting it, that loan will be treated by Centrelink in the same way as most other investments, with a deemed rate of return – even if your kids weren’t expected to pay you interest or stop paying the interest you agreed. Importantly, the impact of the loan on your Age Pension isn’t limited to five years, but for as long as the loan is outstanding. It can also be advisable to provide your kids or grandkids with a statutory declaration stating whether it’s a gift or a loan and if it’s the latter, the terms.

We require legal advice for all Household Loans; any terms agreed by you and the recipients should be documented as part of this process. Your Household Loan must be right for you as well as the right thing to do by your kids. In matters of money, emotions can get the better of us. Being clear and upfront will keep everyone secure.

Traditionally, parents helping their children have generally used three strategies, each of which has its downsides.

The most common strategy is for parents to raid their retirement savings, which can wreak havoc on future retirement plans. It might leave you with reduced income or mean your retirement nestegg is not there for you when you need it. The second strategy is to be a mortgage co-borrower, which means you’re on the hook for mortgage repayments if your child misses them. The third strategy is to be a guarantor on a mortgage, which can constrain your own ability to borrow and may put your property at risk if your child defaults on their mortgage repayments.

A Household Loan removes these risks because it doesn’t have to be repaid until you leave your home or it's sold. You could even agree to a regular repayment schedule with your child; payments could be used to make interest-only repayments on your Household Loan, or agree a lump-sum repayment may pay off your Household Loan at a future date. There is no penalty for repayment of your Household Loan at any time. A Household Loan enables you to help your children and grandchildren when they need it most and use your Household Capital to help the next generation build theirs.

It’s important to ensure that intergenerational wealth transfer is responsible; you must make sure your own needs are met before trying to assist your loved ones. However, if your retirement funding needs are in hand, you can use a Household Loan to contribute to a first home buyers deposit, help children with mortgage expenses or cover the costs of education. This approach enables you to help children and grandchildren when they need it most and use your Household Capital™ to help the next generation build theirs.

The lower the reverse mortgage interest rate on your loan, the more of your home equity you retain and can access to fund your long-term retirement needs. It’s that simple.

Reverse mortgage interest rates are generally higher than a standard mortgage because there is no obligation for borrowers to make repayments until the end of the loan.

Reverse mortgages are only available with variable rates; the main benefit of this is that you have flexible repayment options. A Household Loan may be repaid, in part or full, at any time without penalty.

Learn more about interest rates and fees

A Household Loan is a type of reverse mortgage, so you benefit from key structural and legislative protections.

Ownership

• You remain the owner of your home (and benefit from any increase in property value)

Lifetime Occupancy

• You can stay in your home for as long as you want to.

No Loan Repayments

• There is no requirement for you to make periodic loan repayments (although you can do so at any time without penalty). The loan becomes repayable when you leave your home.

No Negative Equity Guarantee

• You cannot end up owing us more than your home is worth.

A reverse mortgage is a loan where you borrow money using your home and don’t make repayments as you go.

Over time you are charged interest on your loan amount, which includes paying interest on the original amount and any accrued interest. This is called compound interest, and it’s often offset by growth in the value of your home.

Interest is calculated daily and added to your loan each month.

Interest is only charged on your drawn funds; if for example you get a monthly income stream, interest is applied to the portion of funds you have received, not on the total amount available to you.

Alternatively, repayments of any size can be made at any time without penalty.

With a reverse mortgage, you trade a slightly higher interest rate for total peace of mind – no monthly repayments are required and your home stays yours, guaranteed.