Concerns over reverse mortgage complexities surge

Yasmine Raso

Senior Journalist, Financial Newswire

1 August 2025

Older Australians are finding it increasingly difficult to navigate the reverse mortgage market according to new research and enquiry data from national brokerage, Seniors First.

The reverse mortgage broker said it had seen a 300 per cent increase in the volume of enquiries received from Australians over the age of 60 in the past two years, with the most common concerns raised including cost of living pressures, product misconceptions and a lack of access to quality information.

This comes as new research from Seniors First confirmed there were over 150 “points of difference” in the reverse mortgage offerings from Australia’s top four lenders, varying across eligibility criteria, loan features, loan amounts, total fees and costs, and lender policies.

“The reverse mortgage landscape in Australia is more complex than ever,” Darren Moffatt, CEO of Seniors First, said.

“Our research uncovered over 150 variables across just four lenders. That level of complexity is overwhelming for many over-60s who are simply trying to access the equity in their homes for cash, without making a costly mistake.

“From differences in drawdown limits and interest rates, to rules around property types and age-based loan eligibility — it’s a minefield.

“For example, one lender might impose restrictions around the cash reserve feature that another doesn’t, or they might scale back the available loan amount based on property type or location.”

Moffatt said the availability of clear and detailed information about reverse mortgages has not kept up with the product’s popularity among older Australians, marking a clear divide in levels of financial confidence and uncertainty.

“This isn’t a one-size-fits-all loan. Unless you’re a specialist broker, comparing reverse mortgages is almost impossible because most of the eligibility criteria is not public,” Moffatt said.

“Retirees need personalised support from people who know the ‘hidden’ rules — not a generic sales pitch. That’s where specialist brokers like Seniors First can make a real difference.”