Picture a homeowner in their late 60s who has spent decades building equity in their home. The property is worth $800,000, the mortgage is long gone, and yet there is a nagging question sitting at the kitchen table: how much can I borrow with a reverse mortgage, and what actually decides the answer? It is the most common question we hear at Reverse Mortgages Australia, and after more than 20 years working exclusively in this space, we understand why the answer feels elusive. Nobody explains the moving parts clearly.

The amount you can borrow is not a single fixed figure. It depends on four factors that work together, and once you understand them, a realistic range becomes surprisingly straightforward to estimate. This article walks you through the age-based schedule, three real worked examples, and a free tool to get your personalised number.

The four factors that shape your borrowing capacity

Your age at application is the single biggest driver of how much you can access. Lenders use age as a proxy for the expected loan term: the older you are, the higher the percentage of your home’s value you can borrow. This makes sense from a lender’s perspective because the loan is repaid when the property is eventually sold, so a longer potential loan term means more caution early on.

Your property value also plays a central role, but the figure that counts is the lender’s independent market appraisal, not your own estimate. The appraiser uses recent comparable sales in your area, the condition and features of your home, and local market factors to arrive at a value. Properties that are rural, remote, or unusual in type can sometimes attract more conservative appraisals from certain lenders, so location genuinely matters.

The third factor is your chosen lender, and the difference between lenders is larger than most people realise. Some lenders cap the maximum loan amount regardless of property value, for example, P&N Bank caps loans at $300,000 with a maximum LVR of 35%. Other lenders are considerably more flexible. The fourth factor is your product choice, lump sum, line of credit, or regular advance, and how that choice interacts with your goals. Each option is explained in the worked examples below.

How much can I borrow? Australia’s age-based LVR schedule (2026)

LVR stands for loan-to-value ratio, which is simply the percentage of your home’s appraised value that you can borrow against. Consumer guidance from ASIC’s Moneysmart resource notes a typical band of 15, 20% for borrowers around age 60, reflecting the variation between lenders. The schedule most commonly referenced by Australian reverse mortgage calculators and lenders works on a progression of approximately 15% at age 55, reaching around 20% by age 60, then rising by roughly 1% for each additional year. Heartland Bank’s published table, one of the clearer examples in the market, runs from 20% at 60 through to 45, 50% at age 90 or older.

In practical terms, a 65-year-old can typically access around 25% of their home’s value, a 70-year-old around 30%, a 75-year-old around 35%, and an 80-year-old around 40%. These are indicative starting points, not guarantees, and individual lender policies can produce figures above or below this range. For couples, the LVR is always based on the younger borrower’s age, a detail that catches many couples off guard during planning.

Because lender policies vary meaningfully, comparing your options matters. A specialist broker with access to the full lender panel, including niche providers not available through mainstream banks, will surface a wider range of options than a single bank branch can offer.

How much can I borrow? Three worked examples for Australian homeowners

Margaret, age 65, home valued at $800,000

At a 25% LVR, Margaret could access around $200,000. She is weighing a lump sum to fund home modifications against a line of credit she can draw on as needed. The practical difference is significant: a lump sum starts accruing interest on the full amount immediately, while a line of credit only charges interest on what has actually been drawn down. For a renovation project with staged costs, a line of credit can save real money over time.

David, age 80, and Susan, age 75, home valued at $650,000

At approximately 35% LVR, David and Susan could access around $227,500. Because Susan is the younger borrower, the LVR calculation is based on her age, an important detail many couples miss when they first run the numbers. Regardless of how much older David is, Susan’s age always governs the LVR. Understanding this rule early helps couples plan more accurately.

Ron, age 80, home valued at $900,000

At around 40% LVR, Ron could access up to $360,000. His main concern is leaving something behind for his children. Under Australian law, all reverse mortgages issued since September 2012 carry a negative equity guarantee, which means Ron can never owe more than the home is worth at the time of sale. If the loan balance exceeds the eventual sale price, the lender absorbs the shortfall. His estate is protected by legislation, not just by a lender’s goodwill.

How fees and compounding interest affect your real balance

The borrowing limit is one number; the loan balance that grows over time is another. Upfront costs on Australian reverse mortgages typically include an establishment fee of $500 to $995, plus valuation, legal, and settlement costs that can add another $800 to $1,500. Some lenders also charge an ongoing service fee of up to $15 per month. These costs are often added to the loan balance rather than paid out of pocket, which means they immediately start accruing interest.

Current variable interest rates on Australian reverse mortgages run roughly 7.9% to 9.3% per annum, compared to around 6% for a standard owner-occupier home loan. Because no repayments are required, interest compounds monthly on the full outstanding balance. A $200,000 loan at 8.5% per annum with no repayments would grow to approximately $300,000 in around five years (compounded monthly). That is not a reason to avoid the product, but it is a strong reason to borrow only what you need and to go in with a clear purpose.

How to get your personalised estimate

The age-based schedule in this article gives you a useful starting range, but your actual figure will depend on your specific lender options, your property type, and what you want to use the funds for. Reverse Mortgages Australia provides a free equity calculator on its website that factors in your age and property value to produce a realistic estimate, no sign-up required. It is a practical first step for anyone exploring home equity release in Australia.

Once you have a range, the next step is comparing lenders, looking not just at the maximum LVR but also at interest rates, fee structures, and the flexibility of payout options. A specialist broker who works across the full lender panel, including niche providers, will surface options that a single bank or a generalist broker may not consider. It is also worth speaking with a financial adviser about reverse mortgage eligibility in Australia and how a loan interacts with your Age Pension entitlements and your broader estate plan; ASIC’s Moneysmart guidance on deeming rules and the assets test is a helpful starting point for those conversations.

Your number is the first step, find out how much you can borrow

Borrowing capacity starts with two things: your age and your property value. The typical range runs from around 15, 20% for a 60-year-old to roughly 40, 50% for someone in their mid-to-late 80s, and the worked examples above show what those percentages look like in real dollar terms. Fees and compound interest are part of the picture too, so borrowing with intention matters.

Getting a personalised estimate takes minutes and carries no obligation, once you know your number, you are no longer guessing. Knowing exactly what you can access puts you in control of the conversation, and that is exactly where you should be.