Reverse Mortgage Calculator: How Much Equity Could You Have Left?
See how a reverse mortgage may grow over 5, 10 or 20 years. Compare future debt with your home's projected value under three transparent scenarios.
Your home and borrowing
Your projected position
Illustrations, not lender quotes or an assessment of how much you are eligible to borrow. Your rate and home-value assumptions can change.
What is being compared?
Baseline uses your chosen rate and property growth. Flat-property scenario assumes 0% home growth. Higher-interest scenario assumes your chosen annual interest rate plus 2 percentage points, including any subsequent interest-rate changes.
Your basic calculator figures will prefill the editable mortgage enquiry.
How your mortgage debt and home equity could change
| Years | Age | Debt | Home value | Equity: baseline | Equity: flat property | Equity: +2% interest |
|---|
Negative equity is displayed as a negative number rather than hidden. Australia's no-negative-equity protections relate to qualifying loan settlement obligations; they do not erase the modelled outstanding debt. Interest is charged at month-end after beginning-of-month transactions.
What these results mean
Reverse mortgage interest can be added to the balance instead of being paid monthly. Because future interest is then charged on an increasingly large amount, the debt can grow substantially even if you never take another advance. A flat or declining home price can amplify the reduction in remaining equity.
Check the in-depth reverse mortgage guide for lender-specific borrowing limits, repayment events, protection for remaining equity and alternatives including the government Home Equity Access Scheme. You can also compare the ASIC Moneysmart reverse mortgage calculator.
Assumptions: Default nominal interest rate 7% and property growth 3% are illustrative modelling presets, not offers or forecasts. Opening advances/fees and voluntary repayments occur before the month's interest charge at nominal APR/12. Property growth is compounded monthly from the annual assumption. No lender-specific maximum advance or HEAS entitlement is calculated.