Australians Access Minimal Home Equity Despite Significant Availability

The 2026 Australian Reverse Mortgage Survey, conducted in collaboration with Heartland Australia Bank, Gateway Bank, and Inviva, found that reverse mortgages are used to access just $5.5 billion, representing about 1% of the potential equity available to eligible Australian households. This suggests a lack of awareness or understanding of these financial products.

Reverse mortgages allow homeowners, typically aged 60 and over, to access the equity in their homes without the need to sell. The average amount accessed by households with a reverse mortgage was $150,000, with most new reverse mortgages having a loan-to-value ratio of 15%.

James Hickey, Deloitte Australia partner and survey lead, highlighted the need for increased awareness of equity release products. He noted that while these products can significantly boost retirement income and support retirees' standard of living, their current low uptake indicates many Australians are unaware of how they can help meet financial goals.

For homeowners approaching retirement, it's essential to consider all financial resources available, including superannuation, savings, and home equity. Exploring options like reverse mortgages can provide additional financial flexibility and support a comfortable retirement.