Reverse mortgage loan calculator

Thinking of retiring but not sure you have enough superannuation saved to live comfortably? Use this reverse mortgage calculator to find out how many years you will be able to live off the equity in your home before it returns to a zero value. You may also be interested in the principle and interest / interest only loan calculator.

NB: If you take out a reverse mortgage for the total value of your home and then sell it for less than you calculated it was worth there could be a short fall – and you will need to find additional funds to cover the gap.

Instructions

Enter the current value of the home, and, if needed, the additional lump sum payment you want to draw off your equity. If you wish to receive an ongoing payment from your home, fill in the field for required payments each month. Use the sliders to indicate how many years you will need these monthly payments and the current loan interest rate. If there are regular fees involved complete the fees field and any upfront costs. Your home may increase in value while it has a reverse mortgage over it so this is taken into account. Indicate your expected pace of value increase – low, medium or high. You can also set your own if you wish.

Your results will show you how many years it will take before your equity falls to zero. You can also adjust the slider to see how much you will owe on the reverse mortgage at a certain year, how much equity remains in your home and the estimated total value of your home.

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Disclaimer: Calculator is not intended to be relied on for the purposes of making a decision in relation to a financial product. Whilst every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. Advice should be obtained from a financial services licensee before making financial decisions. Calculator does not assume changes in the cost of living over time. Default assumptions: For the purpose of this calculator, all months are assumed to be of equal length. One year is assumed to comprise 52 weeks and therefore 364 days (as opposed to the actual 365 days or 366 days).