Reverse Mortgage Interest Rates
Inviva's current reverse mortgage interest rate
Inviva's current reverse mortgage interest rate is 9.20% p.a. (comparison rate 9.23% p.a.)*. This rate applies to our Home Equity Release Loan and is charged only on the funds you draw down, not on your total approved loan amount. Reverse mortgage rates can change over time, so we recommend checking with our team or using our calculator for the most current figure when you're ready to explore your options.
*Comparison rate based on a loan amount of $150,000 over a 25-year term. WARNING: comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
How interest works on a reverse mortgage
Unlike a standard home loan, a reverse mortgage doesn't require monthly repayments. Interest compounds over time and is added to your loan balance. In plain terms: if you draw down $50,000 and don't make any repayments, interest is calculated daily on that $50,000 and is then capitalised monthly.
This is why the amount you draw down and the time when you draw down have a meaningful effect on how your loan balance grows. Drawing smaller amounts as you need them, rather than as one lump sum, is one way many customers manage how the interest rate on their reverse mortgage affects their balance.
Weighing up the cost against other options
A reverse mortgage is one of several ways to access funds in retirement, and comparing the real costs can help you decide what suits your circumstances.
For example:
- Credit cards and personal loans often carry higher interest rates than reverse mortgage loan rates and require monthly repayments, which can be difficult to manage on a limited income.
- Downsizing can release equity without ongoing interest but comes with its own costs, including real estate agent fees, stamp duty on a new property, and the time and effort of moving.
- A reverse mortgage lets you stay in your home while accessing equity, with no monthly repayments required and interest charged only on funds you've drawn down.
The option that is best for you will depend on your goals, your property and your broader financial position. Speaking with our team or an independent financial advisor can help you weigh up your options or consider your options properly.
See how different drawdown strategies affect your interest
The way you draw down your funds can make a real difference to how interest grows over time. A lump sum starts accumulating interest on the full amount straight away, while drawing smaller amounts over time means interest only applies to what you've actually accessed at each point. Your circumstances, whether you need funds for a one-off cost like renovations or ongoing support for everyday expenses, will usually guide which approach makes more sense.
- Lump sum: drawing the full amount upfront
- Regular income payment: drawing smaller, regular amounts over time
As a general guide, drawing funds only as you need them typically results in less interest accumulating over the life of the loan compared with taking a full lump sum at the start, since interest is only charged once funds are accessed.
Want a clearer picture for your situation?
Inviva's Lending Specialists can talk you through how reverse mortgage interest rates in Australia apply to your specific circumstances, with no obligation. Learn more about how reverse mortgages work, or explore the full features of Inviva's Home Equity Release Loan.
