Will a reverse mortgage affect my Age Pension?

A reverse mortgage does not automatically cancel your Age Pension. The effect depends on how you receive and use the money, including whether you keep it as cash, invest it or give it away. Check your circumstances with Services Australia before drawing funds.

A reverse mortgage does not automatically cancel your Age Pension.

The effect depends on:

• how the money is paid


• how much you receive


• whether it remains in a bank account


• whether it is invested


• what assets you purchase


• whether money is given to another person.

Your principal home is generally exempt from the Age Pension assets test. Money released from the home and retained as cash or used to buy assessable assets may be treated differently. Financial investments can be included under the assets test and subject to deeming under the income test.