Reverse mortgage calculators

How to fund your living expenses after retirement is a difficult decision to make with more Australians turning to the capital in their home as a means of income.

Reverse mortgages are on the rise, with more lenders offering this type of borrowing. With the financial markets taking a hit, cashing in on your largest asset may seem like a clever move. But just how much will it cost you? There are many things to be considered that will all have an effect whether a reverse mortgage is the correct choice for you.

The Australian Securities & Investments Commission (ASICS) have a reverse mortgage calculator that will show the different outcomes depending on how much you borrow and how long you borrow it for, whether you take a lump sum payment on regular income payments and varying interest rates and various fees. It will also show how your home equity may be affected by future changes in the value of your home.

This is only a guideline and should be used to give you an idea of how much you can borrow, what it will costs and how it will affect the capital in your home. If you are considering a reverse mortgage, you should consult an individual financial advisor.

To try the reverse mortgage calculator, visit FIDO.

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