A fresh Deloitte survey points to a major advice gap in reverse mortgages, as older clients seek new ways to fund retirement, help first-home buyers in the family, and manage traditional mortgage debt.
The 2026 Australian Reverse Mortgage Survey estimates that Australians over 60 hold about $3 trillion in home equity, with around $600 billion realistically accessible through structured equity-release products.
Yet the report finds that “reverse mortgages are used to access just 1% of the potential equity available via equity release products to eligible Australian households.”
For brokers facing softer purchase volumes, tighter borrowing capacity, and sensitive mortgage rates, that underuse signals a significant, largely untapped service and revenue stream.
That picture is echoed in broader industry data, which also show that Australia’s reverse mortgage market, while still modest, is growing, with market research pointing to year‑on‑year increases in loan volumes and one major provider reporting a double‑digit rise in its portfolio over the year to June 2025.
Deloitte stresses that reverse mortgages remain tightly regulated under the National Consumer Credit Protection Act, with private‑sector lenders required to hold appropriate licences and comply with ASIC’s product design and distribution obligations.
For clients wary of compounding balances, the survey data is also reassuring. Around 12% of reverse mortgages by balance were repaid in full in the year to 30 June 2025, with most of these pay‑outs initiated by borrowers rather than mandatory events.
Deloitte partner James Hickey said “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.”
That behaviour may help brokers position reverse mortgages as a flexible tool alongside superannuation, the age pension, and other investments, rather than a last‑resort option.
Across private lenders and the federal government’s Home Equity Access Scheme, outstanding reverse mortgage balances reached about $5.5 billion as of 30 June 2025, spread across more than 40,000 households. New drawdowns over the previous year totalled roughly $750 million, with more than 8,000 households entering the market for the first time.
Borrowers using participating private‑sector lenders accessed on average $150,000 at around a 15% loan‑to‑value ratio.
Heartland Australia Bank chief commercial officer Medina Cicak said the figures show “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.”
Common uses include home improvements, debt consolidation, vehicles, travel and income support.
The survey also highlights a shift towards earlier take‑up. A substantial share of new customers were under 70, with some lenders accepting applications from 55, while only a smaller portion were aged 80 or over.
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 of these households are entering retirement still carrying mortgage or investment debt, and are using equity release to remove regular repayments, support adult children entering the market as first-home buyers or property investors, and smooth cash flow during the transition out of full‑time work.
Vanguard’s How Australia Retires 2025 report suggests this trend is set to continue, with more Australians expecting to carry mortgage debt into retirement.
Awareness gap leaves room for broker leadership
Deloitte notes that specialist brokers are generally familiar with reverse mortgages, but awareness across the broader broking industry remains patchy.
With ASIC’s MoneySmart website providing independent consumer guidance and major lenders active in the space, the survey suggests there is scope for more brokers to incorporate equity‑release conversations into their retirement, refinancing, and estate‑planning discussions, and to position themselves as long‑term advisers to ageing clients and their families.
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