Can you pay off a reverse mortgage early? Learn if there are any charges for paying off a reverse mortgage early and how it affects your finances.
You will be required to pay the outstanding balance and interest or government charges applicable if you choose to repay or terminate your loan before the end of the term. We will provide you with a loan payout estimate so you are fully informed of any potential costs ahead of terminating your loan.
Can you pay off a reverse mortgage early if you sell your home?
Yes. If you sell your home, the reverse mortgage is typically repaid from the sale proceeds. You will need to pay the outstanding balance, including accrued interest and any applicable fees and government charges, at settlement.
Can you pay back a reverse mortgage at any time?
In most cases, yes. You can generally repay a reverse mortgage at any time by paying the outstanding loan balance and interest. A loan payout estimate will be provided so you understand the amount required.
Who can I speak to if I’m considering paying off my reverse mortgage early?
If you’re thinking of repaying your reverse mortgage early, the Inviva team can help explain how the process works and provide a loan payout estimate.
When paying off a reverse mortgage early may not be suitable
Paying off a reverse mortgage early is not always the right option for everyone. In some cases, retaining the loan may help preserve access to funds for future expenses such as healthcare, aged care or ongoing living costs. Repaying the loan early may also reduce available savings or limit financial flexibility later on. Before deciding to repay a reverse mortgage early, consider your broader financial position and how the change may affect your long-term plans.