Four of New South Wales' five postcodes with the highest reverse mortgage rates are on the coast, according to new figures from Seniors First.
Wamberal (2259) and The Entrance (2261) on the Central Coast, along with Byron Shire (2486) and Jervis Bay (2540) on the South Coast, all rank among the state's top five, alongside Northbridge (2068) on Sydney's Upper North Shore.
Seniors First chief executive Darren Moffatt (pictured) said the trend reflects where Australians want to spend their retirement.
"These are the places many Australians dream of retiring to, the Central Coast, Byron Shire, the South Coast, so it makes sense homeowners there are finding ways to stay and make the most of it, rather than cashing out and moving on," Moffatt said.
Moffatt pointed to a widening shortfall between superannuation balances and the actual cost of retirement as a key driver.
"We are seeing people who have worked hard, paid off their home and built significant equity who now find superannuation alone doesn't match the reality of retirement," he said.
Rather than sell up, he said many retirees are choosing to release equity so they can remain in their homes and communities. Recent falls in house prices, linked to federal tax changes, are also prompting some owners to hold off selling and consider equity release instead.
That opportunity extends beyond individual borrowers: Deloitte's 2026 Australian Reverse Mortgage Survey found the market has tapped only around 1% of the estimated $3 trillion in housing equity held by Australians aged 60 and over, pointing to a significant opportunity for brokers who build expertise in the category.
Gateway Bank is seeing the same pattern among its own customers.
"We're hearing this again and again. They would rather stay in the home and the community they love than sell up and start over somewhere new," said chief executive Lexi Airey.
More than 5.5 million Australian homeowners are aged over 55, with almost 2.5 million set to retire within the next decade. More than 40,000 Australians currently hold a reverse mortgage, with over 8,000 taken out in the past year alone.
Moffatt said the No Negative Equity Guarantee remains the key safeguard for borrowers, ensuring they can never owe more than their home is worth.
ASIC strengthened these protections further in April, formally mandating the guarantee across all reverse mortgage contracts and introducing a 45% loan-to-value cap for borrowers aged 90 and over.
Seniors First, which originates one in five reverse mortgages nationally, has also launched SERAH, an online portal connecting older Australians with brokers and educational resources on equity release.
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