reverse-mortgage-victoria

Reverse Mortgages – a video overview

Mon, 19 Oct 2026 04:26:03 GMT

Learn about reverse mortgages and how they work with this video overview by our advisor, Paul Dwyer as he explains

the crucial details,

the processes

and the protections

involved in meeting later life needs with a reverse mortgage loan.

Contact Paul today for advice about your best retirement financial solution

Victorian Land Tax on Holiday Homes

Mon, 19 Oct 2026 04:10:28 GMT

For example, when your land value is $1,000,000 against a capital improved value of $1.6m, you will be charged $4,650 in 2025.

One of your options to continue using your property is a Line of Credit reverse mortgage.

You set a facility amount to use when you wish, and interest is charged on the amount you use. Note that interest is compounding.

If you take a long-term view, with a capital growth of a conservative 3%, that is $48,000 growth per annum ongoing.

Using the reverse mortgage Line of Credit, borrowers have the capacity to pay Land Tax and most other maintenance costs in order to retain their prized enjoyment.

The Victorian Government has significant debt and they have aimed their focus on secondary homes.

Many older Victorians have bought a secondary property to enjoy in their retirement, with their family and friends.

But for those on fixed incomes or reduced savings, the Land Tax bill has increased significantly in the past few years and posed an impediment.

We now see a surge in properties on the market as the Land Tax bill is getting bigger and causing financial strain to owners.

For further information, please call 1300 663 534

Can you assist your children with their home loan?

Mon, 19 Oct 2026 04:02:41 GMT

An amount of $800 per month for 2 years should not affect any age pension entitlements.

Speak with Paul to learn more about reverse mortgages and gifting and how your personal situation may assist your family.

All about gifting

Are you in a position to assist your family when their home loan repayments are escalating and they cannot get a better interest rate?

Do you want to make sure they can retain their home without financial stress or “forced sale”?

Have you considered a reverse mortgage payment as a gift?

The number of Australian households who are struggling to refinance due to serviceability issues has surged from 15% to 30% in just less than six months, according to Compare Club.

New data from the personal finance marketplace and advice company also showed a skyrocketing number of refinancing enquiries from mortgage holders with an LVR of 90%, which makes refinancing tough, if not impossible, and to a level not seen since interest rates began to rise.

Broker News 23 ^rd August 2023

Many of our clients have expressed concern at the Centrelink rules applicable to Gifting to family members.

Whilst the rules regarding the amounts that can be gifted are explicit, the effect of gifting on pension entitlements is not always as clear.

Clients often have received incorrect advice from Centrelink, effectively restricting the amount they can gift.

Paul has been able to assist many clients to gift larger amounts, without any negative effect on their pension entitlements.

Talk to Paul to establish how much you can gift – It will often be more that you thought!

The Difference? – You are talking to an Expert – Not a Call Centre!

Pension and Aged Care

Mon, 19 Oct 2026 03:53:29 GMT

Paul has helped thousands of Senior Victorians to successfully negotiate the complex rules that apply to both Pension Entitlements and Aged Care costs and fees.

Many senior Australians have limited resources to improve their financial position.

Many are on a fixed income, either from Superannuation or the Aged Pension.

Paul will discuss your loan structure and advise whether there may be any pension impact. It is important to consider that a pensioner couple may one day have their pension income reduced from couple to single rate ( from $1,458 a fortnight to $967.50) should one of them pass away!

Paul will discuss ways you can prepare for this and other ‘Later Life’ expenses.

From 1 ^st July 2022, homeowners selling their home that has been owned for more than 10 years, can contribute up to $300,000 (per person) into a superannuation fund. But is it a financial advantage?

Are your Age Pension payments correct?

The HEAS v Reverse Mortgage

Reverse Mortgages & age pension

Reverse Mortgage & Aged Care

You can talk to Paul on 03 9563 3442

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The Difference? – You are talking to an Expert – Not a Call Centre!

Downsizing for Seniors

Mon, 19 Oct 2026 03:24:29 GMT

The first consideration is the age pension and the second is property growth rates. Any amount contributing to a super fund for an age pensioner will be considered as an asset. This may affect pension entitlements.

Let’s look at the following 2 scenarios.

A 69 year old Single lady wants to fulfil her retirement years and is looking to use the equity in her home to enhance her later years. She is planning to sell her home for $1.4m and currently receives the full aged pension of $987.60 (eff. 21 ^st March 2022). She intends to buy a two bedroom unit for $1.1m including costs. She would be left with $300,000 – the maximum she can contribute to super. Her current assets are home contents $10,000, car valued at $18,000, cash at bank of $25,000 and $65,000 remaining in super.

Whilst her super will give her additional access to living out her dreams, there are two adverse effects in making this decision

The growth in her future unit home will be far lower than the current freehold property. If the freehold family home grows at 5% per annum, after 10 years the property is forecast to be valued at $2.28m. If the growth in a unit is around 2%, the property is forecast to be valued at $1.34m. For comparison purposes, the difference between the options is forecast to be $940k.
Age pension impact – As super would become an assessable asset, it is forecast that the current age pension of $987 p/f would become $545 p/f – a reduction of $442 p/f ($11,492 per annum). This lower payment would reduce further, when deeming rates are increased into the future.

A Couple aged 69 and 67 are retired, have a home valued at $2.0m and looking to downsize and buy an apartment valued at $1.4m including stamp duty of around $65k. This sale would allow them to put the maximum of $300k each into super. They currently have $340k in super, cars valued at $28k, home contents of $10,000 and cash reserves of $22,000. They each receive the full age pension of $744.40 p/f. ($38,708 per annum)

Whilst their super will give them additional access to living out their dreams, there are two adverse effects in making this decision.

The growth in the future apartment will be far lower than the current freehold property.

At 2% growth, the apartment would be valued at $1.63m in 10 years. The freehold family home, increasing by 5% per annum, would be valued at $3.26m in 10 years.

As the contribution to super takes their assets over the threshold, they lose their total age pension payments of $38,708 per annum.

Whilst a decision to downsize may be formed around suitable accommodation for “ageing in place” needs, the financial results may lead to a lower asset position into the future.

A reverse mortgage is a strong option in these scenarios. If the purpose of downsizing is for providing additional income, consideration should be given to a reverse mortgage income stream to meet those needs. The result may lead to greater growth in an asset that is not assessable for age pension entitlements.

These scenarios are for illustration purposes only, and readers should contact Reverse Mortgages Victoria to discuss their own circumstances.

From 1 ^st July 2022, homeowners selling their home that has been owned for more than 10 years, can contribute up to $300,000 (per person) into a superannuation fund. But is it a financial advantage?

Across three decades we have helped thousands of Australian seniors with a full range of reverse mortgage products; helping them find the best reverse mortgage to finance their personal retirement and later life needs.

Are you receiving the correct Age Pension Payments?

Mon, 19 Oct 2026 03:18:17 GMT

Age pension Income assessment

Recipients are able to earn $204.00 per fortnight for singles ($360.00 for couples) before a reduction can be applied to payments. Payments are reduced to zero when annual income reached $60,632 for singles and $92.768 for couples.

Age pension Assets assessment

Home-owners can have a maximum of $314,000 assessable assets ($470,000 for a couple) before pension payments are reduced. Payments are reduced to zero when assessable assets reach $686,250 for a single ($1,031,000 per couple)

Applicants who fail the income test for any pension payment may qualify for the Commonwealth Seniors Health Card if the income is between $60,632 and $90,000 for a single. ($144,000 combined income for a couple)

Are you receiving your correct payments?

Age Pension amounts and Age Pension eligibility are calculated by a means test assessment.

Both income and assets are assessed by Centrelink/DVA in order to determine eligibility and payment amounts.

The current maximum age pension payments are

Single $1144.40 per fortnight

Couple $862.60 each per fortnight

From a client,

“Thank you Paul for reviewing our age pension payments – our information at Centrelink was wrong and we now have $3500 more per year”

… M&G, Hartwell

Retired with debts

Mon, 19 Oct 2026 03:07:24 GMT

In fact, a properly structured reverse mortgage loan can free up the income they are currently required to repay to those loans, leaving more of their retirement income to meet your costs of living.

Paul can assist you to identify all the issues and arrange the most suitable loan for your situation.

Often, as well as ‘freeing up’ the income currently committed to loan repayments, Paul will recommend a monthly instalment from your loan, to supplement your retirement income.

Paul believes you should Enjoy your retirement, not merely Endure it !

Many of our clients have retired whilst still having a mortgage loan, credit card and other debts. This does not prevent them from arranging a reverse mortgage loan.

The Difference? – You are talking to an Expert – Not a Call Centre!

Pay out or refinance your mortgage and feel free to enjoy your retirement

Mon, 19 Oct 2026 02:49:17 GMT

How Does It Work to Refinance your Mortgage?

If you still owe money on your current mortgage, a reverse mortgage can be used to pay off the remaining balance. Here’s how it works:

Access Your Home’s Equity : A reverse mortgage lets you tap into a portion of your home’s value.
Pay Out Your Existing Mortgage : The funds from the reverse mortgage are used to pay off your current loan in full.
Eliminate Monthly Repayments : With no repayments required on the reverse mortgage, you free up your monthly income for other expenses.

This approach allows you to stay in your home without the financial pressure of regular mortgage payments.

Benefits of Refinancing with a Reverse Mortgage

Increase Cash Flow
Without monthly mortgage repayments, you’ll have more disposable income to cover living expenses, medical care, or hobbies and travel.
Stay in Your Home
A reverse mortgage enables you to remain in the home you love while accessing its value to support your retirement.
Flexible Loan Options
Reverse mortgages are designed with flexibility in mind. You can choose a lump sum payment, an income stream, or a combination of both to suit your needs.
No Need to Downsize
By refinancing with a reverse mortgage, you avoid the stress and costs associated with selling your home and moving to a smaller property.

Things to Consider

While reverse mortgages offer many advantages, it’s essential to understand the details:

Loan Balance Growth : The loan balance grows over time due to accrued interest. However, reverse mortgages come with protections, such as a “ no negative equity guarantee ,” ensuring you’ll never owe more than the value of your home.
Impact on Inheritance : Accessing your home’s equity may reduce the amount left for your heirs. It’s important to discuss your plans with family and a financial advisor.
Eligibility Criteria : The amount you can borrow depends on your age, the value of your property, and lender policies.

Is a Reverse Mortgage Right for You?

Using a reverse mortgage to pay out or refinance your current mortgage can provide significant financial relief, but it’s not a one-size-fits-all solution. It’s crucial to seek professional advice tailored to your circumstances. At Reverse Mortgages Victoria we specialize in helping seniors explore reverse mortgage options that align with their goals and lifestyle.

Take the First Step Toward Financial Freedom

Choosing to refinance your mortgage with a reverse mortgage can open the door to a more secure and enjoyable retirement. Contact us today to arrange a free consultation and discover how a reverse mortgage could work for you.

Many Australians approach retirement with the burden of an existing mortgage. For seniors, making regular repayments on a traditional home loan can place significant strain on a fixed income, reducing financial flexibility and peace of mind. A reverse mortgage offers a smart, tailored solution for refinancing or paying off your mortgage, allowing you to use the equity in your home to secure a more comfortable retirement.

Here’s what you need to know about using a reverse mortgage to manage your existing mortgage.

What Is a Reverse Mortgage?

A reverse mortgage is a type of loan that allows homeowners aged 60 and older to access the equity in their home without the need for regular repayments. Instead, the loan balance, including accrued interest, is repaid when the property is sold or you move into permanent care. This unique structure provides financial freedom while allowing you to stay in your home for as long as you choose.

The Revised Pension Loans Scheme compared to a conventional reverse mortgage

Mon, 19 Oct 2026 02:40:50 GMT

Much has been written about the recently revised Centrelink Home Equity Access Scheme (HEAS). It is a government-funded reverse mortgage loan that offers eligible seniors (not necessarily pension recipients) increased pension payments advanced as a reverse mortgage loan.

About the Home Equity Access Scheme

Borrowers must be property owners and the loan is secured by a caveat over their home, or an investment property.

Some articles have incorrectly stated that eligibility is restricted to Australians of Age Pension age who are currently receiving an eligible pension. This is not the case – You do not have to be receiving a pension to be eligible for the HEAS.

The loans are administered by Centrelink and are offered at a low interest rate, (currently 3.95%) and the loan funds are advanced as extra payments on a fortnightly basis. For a single person a borrower could access $538.35 p/f, whilst a couple could access $826.70 p/f. (as at 20 th Sept 2023).

Access to a Home Equity Access Scheme (Centrelink Reverse Mortgage loan) is now available as a lump sum, but cannot be greater than the combination of 26 fortnightly payments – $13,997.10 for singles and a combined $21,494.20 for a couple. As with conventional reverse mortgage loans, the loan amounts received are not taxable. Centrelink regards reverse mortgage funding as a drawdown on capital, and assesses the funds on what use is made. They can be assessed in both assets and deemed income calculations.

Conventional Reverse Mortgage

The maximum loan amount with a conventional reverse mortgage is based on a formula of age and property value, starting at 15% of property value at age 55 and increasing by 1% per year of age, up to 45% at age 90. There is no maximum dollar amount on conventional reverse mortgage loans. Both loans require a property valuation and borrowers pay for establishment fees and charges.

Summary.

The Home Equity Access Scheme offers pensioners (who only require extra income on a fortnightly basis, or a small lump sum), a lower cost option to obtain those funds. Payments are limited to the difference between the amount of pension they are currently receiving and 150% of the full pension rate.

People requiring higher income funding (i.e. more than the fortnightly payment available for the HEAS, or the small lump sum) or larger lump sum payments will need to apply for a Conventional Reverse Mortgage loan.

Would you like to find out the options available to you? Contact Reverse Mortgages Victoria today for a free discussion on how you can better meet your financial requirements in retirement.

Reverse Mortgage and Age Pension Entitlements

Mon, 19 Oct 2026 02:22:06 GMT

Many older Australians value their age pension payments. For the majority of recipients, the use of a reverse mortgage will have no effect on current entitlements.

Each age pension recipient is assessed on both their assets and income to determine their pension payment.

Maximum assets for Full pension

From 20th September 2024, allowances and full age pensions reduce when your assets are more than the limit for your situation.

Maximum assets for Part pensions

From 20th September 2024, part pensions cancel when your assets are more than the limit for your situation.

With a Reverse Mortgage, up to $40,000 is exempt from the assets test for up to 90 days, so the money needs to be spent within this time limit to avoid it becoming an assessable asset. If $50,000 is used for home repairs/maintenance on the principle place of residence, (an exempt asset), the monies spent will not be included as an asset. If the $50,000 is to pay for a new car, the value of that car then becomes a non-deemed asset.

Advisers are required to have a discussion with potential borrowers about future needs and many discussions lead to having a Line of Credit structure into the loan facility to meet any future needs, if and when they may occur. From an age pension perspective, it is important to know that a Line of Credit is not regarded as an asset.

Assessable income on financial assets

The Government has amended deeming rates from 1st July 2024).

Deeming rate

Situation

Situation

Lower rat e : 0.25% on the first $62,600 of your investment assets, plus
Upper rate : 2.25% on your investment assets over the amount of $103,800

If you are a member of a Couplewhere at least one of you gets a pension

Lower rate : 0.25% on the first $103,800 of your combined investment assets, plus
Upper rate : 2.25% on your investment assets over the amount of $62,600 Single OR $103,800 Couple

Centrelink is the ultimate source for determining age pension entitlements, but Paul will assist potential borrowers with basic information about their qualifications.

It is important to ensure age pension recipients regularly update their information with Centrelink. In the first 3 months of 2024, our advisers have met 3 clients whose details have not been updated to reflect their circumstances, and have missed out on between $16,000 and $30,000 over the past 3 years.

Are you eligible for the full age pension?

From 20th September 2024, the full age pension is $1144.40 p/f for a single and $862.60 each per couple.

We recommend recipients check their payments to reflect their current asset and income position.