How much home equity could Australians access?

While older Australians hold around $3 trillion in housing equity, Deloitte estimates that roughly $600 billion could potentially be accessed through equity release products.

Despite this large pool of available wealth, reverse mortgages are currently used to access only about 1% of that potential equity.

This highlights a significant gap between the wealth Australians hold in property and the financial resources they use to support their retirement lifestyle.

What is a reverse mortgage?

A reverse mortgage is a type of loan available to older homeowners that allows them to borrow against the equity in their home.

Unlike a traditional mortgage:

• Borrowers don’t need to make regular repayments

• Interest is typically added to the loan balance over time

• The loan is repaid when the home is sold or when the borrower permanently leaves the property

This allows retirees to access part of their home equity while continuing to live in their home.

For some households, it can provide additional financial flexibility during retirement.

Reverse mortgages in Australia: a small but growing market

Although awareness is improving, reverse mortgages remain a relatively small part of Australia’s retirement funding landscape.

The Deloitte survey found that:

• Around 40,000 Australian households currently have a reverse mortgage

• The total reverse mortgage market is worth approximately $5.5 billion

• In the 12 months to June 2025, about 8,000 households took out a reverse mortgage

• New lending during that period totalled around $750 million

Compared with the potential $600 billion in accessible housing equity, the market remains significantly underutilised.

How Australians are using their home equity

Most homeowners who take out a reverse mortgage access modest amounts rather than large lump sums.

The survey found the average amount accessed is about $150,000, typically representing around 15% of a property’s value.

Common reasons Australians access their home equity include:

• Home renovations or maintenance

• Paying off existing debt

• Supplementing retirement income

• Funding lifestyle expenses, such as travel or cars

These smaller withdrawals can help retirees manage unexpected expenses and maintain their desired standard of living.

A shift toward accessing equity earlier in retirement

Traditionally, reverse mortgages were often associated with older retirees later in life. However, recent data suggests this may be changing.

According to the Deloitte survey, around one-third of new borrowers are under the age of 70, indicating that some Australians are starting to consider home equity earlier in retirement.

Andre Karney, Co-CEO of Inviva, says this reflects broader changes in retirement patterns.

“Reverse mortgages are increasingly being used earlier in retirement, not just later in life,” he said.

Many Australians now transition gradually into retirement, often reducing working hours in their late 50s or early 60s.

“Accessing a portion of housing equity can provide valuable flexibility during that transition, allowing retirees to use their housing wealth alongside superannuation and other assets.”

Why home equity may play a bigger role in retirement

With Australians living longer and retirement potentially lasting 20 to 30 years, managing income and savings over time has become increasingly important.

For many households, housing represents their largest asset. As awareness grows, more retirees may begin to consider home equity as part of a broader retirement income strategy, alongside superannuation and the Age Pension.

While reverse mortgages are not suitable for everyone, they are becoming a more widely discussed option for homeowners looking to unlock some of the wealth tied up in their property.

Key takeaway

Australia’s retirees hold trillions of dollars in home equity, yet only a small fraction of it is currently being used.

As retirement lifestyles evolve and financial pressures increase, home equity release solutions like Inviva’s reverse mortgage could become an increasingly important part of the retirement funding conversation.

See how much you could borrow with our home equity release calculator.  

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_{The information provided here is general in nature and does not take into account your personal circumstances, objectives or financial situation. Before acting on any information and for legal, tax, or financial questions, you should consult with an appropriate professional.  
Loans are subject to eligibility and lending criteria. Fees, interest rates and terms and conditions apply. Loans are serviced and distributed by Inviva Services Pty Ltd. Australian Credit Licence 533319.}

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