Estimate how much you could draw from your home with a reverse mortgage, and see how a compounding balance changes the equity you keep over time.
What this tool estimates
A reverse mortgage lets an older homeowner borrow against the home without making regular repayments. The interest is added to the balance and compounds, and the loan is usually repaid when the home is sold. The calculator above estimates two things: how much you could draw now, and what the debt and your remaining equity might look like years down the track. Enter your home value, the age of the youngest borrower, the amount you want to draw, an interest rate, and a projection period.
What drives the number
Two forces pull in opposite directions. The amount you can access is set by a loan-to-value cap that rises with age — the older the youngest borrower, the larger the share of the home a lender will release. Working against that is compounding: with no repayments, the balance grows every month at a rate that typically sits above standard home-loan rates. Over fifteen or twenty years that can consume a meaningful slice of your equity, even as the home itself appreciates. The projection makes that trade-off visible so it is a decision, not a surprise.
Use it as a starting point
Treat the result as a conversation-opener. The right question is not only how much you can draw, but how a reverse mortgage sits alongside your pension, aged-care position and the estate you intend to leave — and whether another structure serves you better. Book a strategy session and we will work through it properly.
General information only — not personal financial product or credit advice. A reverse mortgage carries a statutory no-negative-equity guarantee, but the compounding balance, lender caps and rates vary and the estimate is indicative only. Drawdowns can affect pension and aged-care entitlements; confirm your position with your licensed financial adviser. AeFin is an Australian Credit Representative (CR 464548) of Finsure (ACL 384704).