Consumer Protections

Reverse mortgages are widely recognised as among the most heavily regulated and legislated credit products in Australia.

Reverse mortgages in Australia are regulated under the Federal Government’s National Consumer Credit Protection Act 2009 and the National Credit Code, regulated by the Australian Securities and Investment Commission (ASIC)

These set out the legal safeguards lenders and brokers must follow.

Below is a breakdown of each regulation, what it protects, and how it applies to borrowers aged 60 and over.

No Negative Equity Guarantee

By statutory law, you or your estate can never owe more than what the home is worth when it is sold. If the property market dips and the loan balance exceeds the home’s value, the lender absorbs the losses – never your family. Your other assets (such as savings, superannuation, or other properties) are fully protected.

Payments

A Reverse Mortgage does not need to be repaid until the last borrower permanently leaves the home. This includes death, sale, moving in with children or moving into aged care. The lender can never request payment before this time. However, if a client wishes to make payments, they can do so at no extra cost.

Best Interest Duty

The Reverse Mortgage borrower is also protected by the broker’s Best Interest Duty (BID), introduced after the Banking Royal Commission. This means we must act in the best interests of the consumer when providing credit assistance. This can be audited by ASIC, and we are required to justify that our lending choices actively serve the customer and achieve the best available outcome.

Centrelink Integration:

Reverse mortgage proceeds in Australia are specifically structured to interact with the Age Pension assets test. For example, if funds are used for home improvements on a primary residence, they may not affect pension eligibility, a feature deeply tied to the Australian welfare system.

ASIC-Regulated Equity Forecasts

We are legally required to use official ASIC Moneysmart calculators to simulate your loan. We will hand you a visual roadmap showing exactly how your loan balance and remaining home equity are projected to change over 5, 10, and 20 years.

Guaranteed Lifetime Tenancy

You have the absolute right to live in your home for as long as you choose. As long as the property remains your primary residence and you meet basic council rates and insurance obligations, no lender can ever evict you.

Mandatory Independent Reviews

To guarantee your choices are truly informed, Australian credit laws require that you obtain independent legal advice before entering into a contract, ensuring your family’s interests are completely safeguarded. A solicitor reviews the loan contract and ensures you aren’t being coerced.

Standardised Information Statements

Before you make any commitments, you will receive a formal Reverse Mortgage Information Statement. This document clearly outlines the exact interest structures, fees, and conditions in a regulated, easy-to-read format.

Equity Preservation (LVR Limits)

Strict, government-regulated Loan-to-Value Ratio (LVR) limits are tiered based on your age. This restriction actively prevents borrowing too much equity too early in retirement, safeguarding your wealth for the long term.

AFCA: Australian Financial Complaints Authority.

As brokers, we participate in the ASIC-approved External Dispute Resolution Scheme

Retain Full Home Ownership

You remain the sole registered owner on the property title, not the bank. Any remaining equity left over after the loan is eventually repaid belongs entirely to you or your designated beneficiaries.

Regulatory Suitability

Under Australia’s strict Responsible Lending Obligations, we are legally required to verify that the loan is “not unsuitable” for both your current circumstances and your future needs.

Reverse Mortgages Australia
Your Trusted Source of Reverse Mortgage Advice, Delivery and Support

From the first consultation with us, you can expect experienced, empathetic, specialist advice and a solution tailored to finance your retirement living and personal objectives.

We will ensure any reverse mortgage is sourced from trusted reverse mortgage lenders in Australia and meets your unique goals and your situation every time.

Reverse Mortgages Australia
Your Trusted Source of Reverse Mortgage Advice, Delivery and Support

From the first consultation with us, you can expect experienced, empathetic, specialist advice and a solution tailored to finance your retirement living and personal objectives.

We will ensure any reverse mortgage is sourced from trusted reverse mortgage lenders in Australia and meets your unique goals and your situation every time.