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See how the balance and your equity could change over time.
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Reverse Loans projection (estimate only). Inputs: Home value today: $1,000,000; Amount borrowed at the start: $100,000; Interest rate (per year): 8%; Years to project: 20 yrs; Home value growth (per year): 3%; Upfront fee: $0; Monthly fee: $0; Extra borrowed each month: $0; Voluntary repayment each month: $0.
After 20 years, estimated
- Amount owed
- $492,680
- Home value
- $1,806,111
- Equity left
- $1,313,431
- 73% of home value
- Total borrowed
- $100,000
- Total interest
- $392,680
- Total fees
- $0
- Total repaid
- $0
Year by year
| Year | Amount owed | Home value | Equity left | Equity % | Shortfall | Interest so far |
|---|---|---|---|---|---|---|
| Start | $100,000 | $1,000,000 | $900,000 | 90% | None | $0 |
| 1 | $108,300 | $1,030,000 | $921,700 | 89% | None | $8,300 |
| 2 | $117,289 | $1,060,900 | $943,611 | 89% | None | $17,289 |
| 3 | $127,024 | $1,092,727 | $965,703 | 88% | None | $27,024 |
| 4 | $137,567 | $1,125,509 | $987,942 | 88% | None | $37,567 |
| 5 | $148,985 | $1,159,274 | $1,010,290 | 87% | None | $48,985 |
| 6 | $161,350 | $1,194,052 | $1,032,702 | 86% | None | $61,350 |
| 7 | $174,742 | $1,229,874 | $1,055,132 | 86% | None | $74,742 |
| 8 | $189,246 | $1,266,770 | $1,077,524 | 85% | None | $89,246 |
| 9 | $204,953 | $1,304,773 | $1,099,820 | 84% | None | $104,953 |
| 10 | $221,964 | $1,343,916 | $1,121,952 | 83% | None | $121,964 |
| 11 | $240,387 | $1,384,234 | $1,143,847 | 83% | None | $140,387 |
| 12 | $260,339 | $1,425,761 | $1,165,422 | 82% | None | $160,339 |
| 13 | $281,947 | $1,468,534 | $1,186,587 | 81% | None | $181,947 |
| 14 | $305,348 | $1,512,590 | $1,207,241 | 80% | None | $205,348 |
| 15 | $330,692 | $1,557,967 | $1,227,275 | 79% | None | $230,692 |
| 16 | $358,139 | $1,604,706 | $1,246,567 | 78% | None | $258,139 |
| 17 | $387,865 | $1,652,848 | $1,264,983 | 77% | None | $287,865 |
| 18 | $420,057 | $1,702,433 | $1,282,376 | 75% | None | $320,057 |
| 19 | $454,922 | $1,753,506 | $1,298,584 | 74% | None | $354,922 |
| 20 | $492,680 | $1,806,111 | $1,313,431 | 73% | None | $392,680 |
What this estimate assumes
- The annual interest rate is divided by 12 and applied monthly to the previous balance, before month-end fees, drawdowns and repayments. It is held constant; actual rates and lender calculation methods may differ.
- The upfront fee is borrowed at the start. Monthly fees stop after the loan is paid off if there are no further drawdowns. Repayments cannot reduce the balance below zero.
- The home grows (or falls) by the same percentage every year. Real prices move unevenly.
- Fees start at zero only as an example. Real loans usually have fees, so enter the ones you have been quoted.
- No other withdrawals, costs, sale of the home, tax or Age Pension effects are included.
- It does not check eligibility, how much you could borrow, approval, or how long you will live in the home.
- The balance is not capped at the home value, so any shortfall is shown rather than hidden.
This is a general estimate, not a quote, a lender projection or financial advice, and no future outcome is guaranteed. Figures are worked out in your browser and are not saved or sent to us.
Where to go next
Read how reverse mortgages work, browse answers about costs and interest, or read real stories from people who have been through it. For independent information, see ASIC Moneysmart: Reverse mortgages.