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Open the original Reverse mortgage calculator on MoneySmart
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Reverse mortgage calculator
Estimate how a reverse mortgage could change your loan balance and remaining home equity over time. The side-by-side comparison helps you see how higher rates or lower property growth can change the outcome.
Best for
- Understanding how equity may change under different scenarios
- Comparing a baseline outlook with a tougher case
- Seeing the effect of fees, drawdowns and compounding interest
Your projection inputs
Use the same core information as the imported calculator, then compare your base case with a tougher scenario using different property-growth and interest-rate settings.
Results
The baseline and comparison summaries below show how home equity changes over time under different interest-rate and property-growth assumptions.
In 15 years, when the youngest borrower is 82, the baseline scenario projects a home value of $1,332,317, a contractual loan balance of $766,572, and remaining equity of $565,745.
Remaining equity over time
Compare the baseline and tougher scenario across the projection horizon.
Baseline
Year 15
Comparison
Year 15
First native cut: lender-specific borrowing caps, product dropdowns, introductory-rate branches and multiple future lump sums are intentionally deferred. The reusable projection engine is the priority in this pass.
At least one scenario projects the contractual loan balance above the future property value. The settlement amount shown is capped at the projected home value to reflect no-negative-equity protection.
Scenario comparison
At the end of the selected projection window| Line item | Baseline | Comparison |
|---|---|---|
| Property growth rate | 3% | 0% |
| Interest rate | 7.5% | 9.5% |
| Projected home value | $1,332,317 | $850,000 |
| Borrowed to date | $300,000 | $300,000 |
| Interest accrued | $463,272 | $686,128 |
| Fees added | $3,300 | $3,300 |
| Contractual loan balance | $766,572 | $989,428 |
| Settlement balance after guarantee | $766,572 | $850,000 |
| Remaining equity | $565,745 | $0 |
| Equity as % of home | 42 % | 0 % |
| Estimated equity depletion age | 95 | 81 |
Final five yearly snapshots
Baseline scenario only| Year | Age | Home value | Total owing | Remaining equity |
|---|---|---|---|---|
| 11 | 78 | $1,181,836 | $568,005 | $613,831 |
| 12 | 79 | $1,217,783 | $612,226 | $605,557 |
| 13 | 80 | $1,254,823 | $659,879 | $594,944 |
| 14 | 81 | $1,292,989 | $711,232 | $581,757 |
| 15 | 82 | $1,332,317 | $766,572 | $565,745 |
What to watch
- Higher rates or slower property growth can reduce remaining equity much faster than many borrowers expect.
- Regular drawdowns and ongoing fees compound the balance over time, not just the original lump sum.
- No negative equity protection helps at settlement, but it does not stop equity from shrinking during the loan.
How these estimates work
- Interest rates and property growth stay constant for each scenario rather than changing year by year.
- Regular payments and ongoing fees are spread into monthly steps for the projection.
- Settlement exposure is capped at the projected home value to reflect no negative equity protection.
- This is a general estimate and does not apply lender-specific age, LVR or product rules.
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