Deloitte Australian Reverse Mortgage Survey - 2026

9 March 2026: Australians over 60 are sitting on $3 trillion in home equity, including around $600 billion that could be unlocked through structured equity release products to boost retirement incomes and help older Australians stay in their homes, a new report has found.

Produced in collaboration with lenders Heartland Australia Bank, Gateway Bank and Inviva, Deloitte’s 2026 Australian Reverse Mortgage Survey found reverse mortgages are used to access just 1% of the potential equity available via equity release products to eligible Australian households.

That’s despite home equity release products being identified by the Federal Government’s 2020 Retirement Income Review as an underutilised way to boost retirement incomes while reducing the budgetary burden of the age pension.

The full survey is available upon request to Deloitte.

Key takeaways include:

• Reverse mortgage volumes across the private and public sector (which includes the Federal Government’s Home Equity Access Scheme) totalled around $5.5bn as at 30 June 2025, representing more than 40,000 households with a reverse mortgage product.
• The volume of new reverse mortgages taken out by Australian households in the 12 months to 30 June 2025 was around $750m, with more than 8,000 households accessing a reverse mortgage product for the first time during this period. 
• Reverse mortgages are used to access only about 1% of the potential equity available to eligible Australian households. Australians aged 60 and over collectively hold about $3 trillion in home equity. Applying typical loan-to-value ratios and lender criteria, an estimated $600 billion could be accessed via reverse mortgages.

Deloitte Australia Partner and survey lead James Hickey said: “The Federal Government’s 2020 Retirement Income Review identified voluntary savings, including home equity, as the third pillar of the retirement income system alongside the age pension and superannuation savings.”

“Equity release products such as reverse mortgages and the government’s own Home Equity Access Scheme were identified as being able to significantly boost retirement income and support retirees’ standard of living. However, it noted that usage of such products was, as it is now, low.”

“It is clear that an established market already exists for Australians to use equity release products like a reverse mortgage to access the equity in their homes without needing to sell their home. However, current low uptake indicates many don’t know about the product or understand how it may help them meet their financial goals.”

How households use reverse mortgages

To understand how households use reverse mortgages, Deloitte conducted a survey of the leading lenders currently offering the product. Those lenders that participated in the survey were Heartland Australia Bank, Gateway Bank and Inviva, who represent a majority of the volumes currently being written in the reverse mortgage market.

The average amount of equity accessed by households that took out a reverse mortgage with one of the participating private sector lenders in the 12 months to June 2025 was $150,000. This ranged from $125,000 for those aged 65 years or younger, up to around $220,000 for older borrowers aged 80+ years. Expressed as a loan-to-value ratio (LVR), most new reverse mortgages entered into by households using a private sector lender were 15%.

Heartland Australia Bank Chief Commercial Officer Medina Cicak said: “The Deloitte survey clearly shows that customers are using reverse mortgages for specific, defined needs. Older Australians are not drawing more than required; on average, they access around 50% or less of their available equity. This indicates a considered and prudent approach to how the product is used, allowing customers to retain flexibility and ensure their future needs can be met.”

The survey reveals that funds released through reverse mortgages are most commonly used for home improvement, debt servicing, lifestyle (e.g. vehicles or travel) and income support. 

Gateway Bank Chief Marketing Officer Adam Norman said: “Many of our customers use their borrowings for a combination of needs like renovations, or buying that new car which they had put off for some time. For others, especially younger retirees in their 60s, the opportunity to travel and enjoy new experiences or to supplement their income is always popular.

“Housing affordability challenges also mean that more households are entering retirement with traditional mortgage debt that requires servicing. These households are increasingly seeking to transfer this debt to a reverse mortgage which requires no ongoing servicing, although the account balance grows with interest.”

The survey also reveals that the plurality of reverse mortgage customers are in early retirement age: for new reverse mortgages entered into in the 12 months to 30 June 2025, some 34% of those were aged less than 70 years old (with some lenders allowing customers to enter into a reverse mortgage from as young as 55 years old), with only 15% aged 80+ years old.

Inviva Co-CEO Andre Karney said: “This data shows that reverse mortgages are increasingly being used earlier in retirement, not just later in life. Many Australians begin transitioning to retirement in their late 50s or early 60s, often reducing their working hours and income. Accessing a portion of housing equity can provide valuable flexibility during that transition, allowing retirees to use their housing wealth alongside superannuation and other assets.”

Reverse mortgage products are available to homeowners across Australia (subject to lender credit criteria). The Deloitte survey shows that most homeowners using the product are located in the eastern states of Queensland, New South Wales and Victoria, which together account for more than 80% of new reverse mortgages.

Another key feature of reverse mortgages from a borrower’s perspective is that they generally have no fixed loan term. The only mandatory repayment criteria are that they must be repaid upon the sale of the property or the passing away or permanent move to aged care of the last remaining applicant. However, borrowers are able to make voluntary repayments (in full or in part) at any time they wish.

Deloitte’s survey shows that about 12% of reverse mortgages (by balance) were repaid in full in the year to 30 June 2025. Of these, approximately 80% were due to voluntary repayments, while only 20% were due to mandatory triggers.

James Hickey added: “The high rate of voluntary repayments of around 10% per annum demonstrates that borrowers are proactively managing their loans, rather than simply leaving the balance to compound.”

Raising awareness

“Households approaching retirement should be aware of all financial resources available to support their lifestyle, including the age pension, superannuation, and voluntary savings such as home equity,” said Hickey.

“While downsizing is a common way to access home equity, retirees who wish to stay in their homes can consider reverse mortgages or other equity release options as alternatives.

“ASIC’s MoneySmart website provides consumer information on reverse mortgages, which are regulated under the National Consumer Credit Protection Act (2009). All private sector reverse mortgage lenders must comply with ASIC’s product and distribution rules and be licensed credit providers or mortgage brokers.

“However, while specialist brokers are familiar with reverse mortgages, awareness remains low among general mortgage brokers. There is an opportunity to improve broker accreditation and increase product awareness.

“Similarly, as superannuation funds develop retirement income strategies, considering housing equity as part of those strategies could further raise awareness and uptake of equity release products. Alongside private sector offerings, the Federal Government’s Home Equity Access Scheme continues to grow, providing a public sector alternative for eligible retirees.”

To receive a full copy of the 2026 Australian Reverse Mortgage Survey, please contact Deloitte using the details below.