Business and other finance
Reverse Mortgage Calculator
Explore an illustrative estimate of how a reverse mortgage balance may change over time.
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What this result means
The result is an estimate produced from the information and assumptions entered. It is not a credit assessment, approval, quote or recommendation. Actual lender calculations can use different assessment rates, income treatment, living expenses, fees and product rules.
Rates, government charges, grants and eligibility rules can change. Confirm important figures with the relevant lender, revenue office or qualified adviser before making a financial or property decision.
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How to use the Reverse Mortgage Calculator
The Reverse Mortgage Calculator can help you explore how a reverse-mortgage balance may change over time under selected assumptions. First, start with the amount borrowed, interest rate, fees, timeframe and repayment assumptions. Next, try more than one scenario so you can see how a different rate, amount or timeframe changes the estimate.
What the result means
Then use the result as an early planning figure and a prompt for further questions. However, it is not a loan quote, approval, credit assessment, tax calculation or personalised recommendation. Actual outcomes depend on the information supplied and the rules, rates, fees and assumptions that apply at the time.
Check the assumptions
For example, use current figures wherever possible. Also include known fees and commitments, and check whether the calculator assumes that rates or costs remain unchanged. In addition, a lender may use different assessment rates, expense measures and policy rules from the figures shown here.
- Test a realistic base case.
- Run a higher-cost or higher-rate scenario.
- Keep a note of the inputs so comparisons use the same assumptions.
For an independent comparison point, see Moneysmart’s Reverse mortgages and home equity release. Finally, treat calculator outputs as general information and check them before you make a financial decision.