A reverse mortgage is designed to provide flexibility and peace of mind during retirement. It allows you to access the equity in your home, providing you with the financial freedom you need while continuing to live in your property. Here’s how you can stay in control of your loan and manage costs over time – while enjoying all the benefits. 

No regular repayments required 

One of the main advantages of a reverse mortgage is that you don’t need to make regular repayments. Instead, interest is added to the loan balance over time, allowing you to free up cash flow. This means you can focus on enjoying your retirement without the pressure of making monthly payments. 

Your home, still working for you 

Your loan is typically repaid from the future sale of your home – usually when you move out permanently, such as when you sell the property or move into care. In the meantime, you retain full ownership of your home and continue to benefit from any potential increase in its value over time. Your home continues to work for you, allowing you to unlock the equity you’ve built while enjoying the lifestyle you desire. 

Flexible options for extra control 

If you want to reduce your loan balance or interest costs, voluntary repayments are always an option. You can make repayments in any amount and as often as you like – whether large or small. For loans settled after 1 April 2017, you can also redraw any repayments you’ve made, offering even more flexibility should your financial needs change later on. 

Looking ahead: loan projections 

Understanding how your loan balance may grow over time is essential for planning your future. A loan projection helps you estimate the potential growth of your balance, taking into account interest, fees, and any increase in your home’s value. At the start of your loan, you’ll be provided with a personalised projection. However, you can also complete one yourself at anytime using ASIC’s MoneySmart Reverse Mortgage Calculator.  

Summary 

Managing your reverse mortgage effectively allows you to maintain control of your finances while enjoying a secure and comfortable retirement. With no regular repayments required, flexible options for voluntary repayments, and the ability to access funds when needed, a reverse mortgage gives you the freedom to live life on your terms. By staying informed about your loan’s growth and utilising the tools available, you can make the most of your home’s equity and ensure that your financial needs are met both now and in the future.  

Get in touch  

If you’d like more information on managing your reverse mortgage, get in touch with our team on 1300 889 338 between 8:30am and 4:30pm EST/EDT Monday to Friday.  

Applications are subject to eligibility and assessment. Terms, conditions, fees, and charges apply. Any advice is general and doesn’t consider your personal situation. Credit provided by Heartland Bank Australia Limited ABN 54 087 651 750 (Australian Credit Licence 245606) or ASF Custodians Pty Ltd ABN 49 106 822 780 (Australian Credit Licence 386781).