A Gateway Reverse Mortgage provides an alternative funding option for your retirement.

If you're over 60 years of age, a Gateway Reverse Mortgage allows you to access the value in your property without having to sell it or move out. Gateway's Reverse Mortgage provides the security of a No Negative Equity Guarantee ensuring you'll never owe more than your property is worth*.


Our Reverse Mortgage gives you the flexibility to draw down your funds when you need them. This helps to give you with the peace of mind of having approved funds available when required, while only paying interest on the money you use.


Improve your cash flow with our flexible Reverse Mortgage

Unlike a traditional mortgage, there are no ongoing repayments and the total loan amount, including accumulated interest, is only repayable when you move out of the property. You can choose to make repayments at any time, reducing the loan balance and interest charged.

How much can I borrow?

The amount you can borrow depends on two key factors: your age, and the value of your property.

At Gateway, the minimum age for a Reverse Mortgage is 60, at which we would lend a maximum of 15% of the value of the property (LVR). This amount would increase by 1% for every year thereafter, meaning a 75-year-old could borrow up to 30% of the property value.

Wide range of acceptable loan purposes

Our Reverse Mortgage can be used for a wide range of purposes, whether it be living costs, renovations, holidays, medical costs, refinance and/or consolidation of multiple debts.


Key benefits include:

We will require you to have received independent legal advice to ensure you understand all the elements of a reverse mortgage and we strongly recommend that you seek independent financial advice regarding the product. We also recommend discussing the product with your family and any beneficiaries as a reverse mortgage will impact any potential inheritance from the sale of the property.


Learn more about your reverse mortgage loan options

Want to know more about Reverse Mortgages? See our full explanation of what a Reverse Mortgage is and how it can help your financial situation.


Submit Your Application

Want to apply for a Reverse Mortgage? Simply download the application below or apply online. You’ll need to following supporting documents to complete this application:

  • Medicare Card PLUS Drivers Licence or Passport
  • Last 3 months’ of transactional account statements from the financial institutions where income is paid. The most recent should be no older than a month
  • The latest statement from any loan you currently have
  • If you have a credit card the last 3 months’ statements for the card(s)


Discover our competitive Reverse Mortgage interest rates

8.80 % p.a. Interest rate 8.88 % p.a. Comparison rate


Want to know more?

Product Features:

Reverse Mortgages
Settlement fee : $995
Additional valuation fee : At cost
Annual fee : $0
Monthly fee : $0
Mortgage discharge fee : $300
Additional repayments accepted : Yes
Additional repayments fee : $0
ATM/EFTPOS access : Yes
Online and Phone Banking access : Yes

The benefits of a reverse mortgage


A reverse mortgage is a way to access the equity in your home and free up more cash for everything from overseas holidays to everyday spending. Many retirees choose a reverse mortgage as part of their retirement plan to ensure they have ample cash flow for enjoying their golden years. There are a wide range of benefits to a reverse mortgage including:

  • Enjoy your retirement in the home you love. With a reverse mortgage, there’s no need to sell your home to free up its equity. You can essentially have your cake and eat it too, staying in the home you know and love and gaining access to your home’s equity at the same time.

  • Line of credit. Our Reverse Mortgage is established as a line of credit, rather than as a lump sum. This means you’ll only pay interest on the funds that you use, making it an affordable and desirable cash flow injection.

  • Flexible drawdowns and repayments. You can make repayments and drawdowns on your reverse mortgage whenever you need to, giving you greater control over your finances. You can make as many voluntary repayments as you like to minimise the amount of interest paid, but you are not required to pay anything before the end of your contract.

  • Easy access to your money. Access your reverse mortgage funds using the same convenient methods as your other Gateway accounts. You can access your money through online banking, phone banking and via your Visa Eco Debit Card.

  • No hidden fees. Your reverse mortgage will incur no annual fees and no ongoing loan administration fees, so more of your money stays in your account.

  • Borrow on your terms. With no minimum or maximum loan term, you control the length of your reverse mortgage.

  • Access up to $1 million. Gain access to credit of up to a maximum of $1,000,00. The minimum reverse mortgage amount is $50,000.

  • No Negative Equity Guarantee. A reverse mortgage with Gateway includes the “No Negative Equity Guarantee” which ensures you’ll never owe more on your loan than what your home or property is worth. If your property sells for less than the outstanding loan amount, we’ll cover the difference.


Please note that every individual is different and a reverse mortgage may not be the best choice for you. Read about our reverse mortgage alternatives below or talk to a financial advisor.

Home Equity Loan vs Reverse Mortgage


Home equity loans and reverse mortgages perform similar functions, leveraging existing equity in a home to free up cash for a homeowner. Here, we look at the similarities and differences between the two loan types, who can access them and how they can help homeowners manage their finances.


Are home equity loans and reverse mortgages the same thing?

No, while home equity loans and reverse mortgages both leverage mortgage equity as a form of home loan and share some similar features they are not the same thing. A home equity loan is paid as a lump sum and is available to any homeowners who have at least 20% equity in their mortgage. Meanwhile, a reverse mortgage is available only to retirees over the age of 60 and is paid as a line of credit, rather than a lump sum.


Want access to your home's equity but aged under 60? Learn more about the EquitiSmart Line of Credit home equity loan.


What is the No Negative Equity Guarantee?

Legally, lenders who offer reverse mortgages must guarantee that once your reverse mortgage contract comes to an end you will not be expected to pay back more than the value of the home. So, if for any reason your property sells for less than the amount borrowed for your Reverse Mortgage, you will only need to pay the amount that’s earned from the sale of your house. Your lender is obliged to cover any shortfall if the sale of your home doesn’t fulfil the cost of your Reverse Mortgage. This is called the No Negative Equity Guarantee.


The No Negative Equity Guarantee sets a Reverse Mortgage apart from regular home loans. A person who holds a regular mortgage will be liable to all costs, even if the loan price exceeds that of the sale price of the home in cases of real estate market decline.


Note: There are exceptions to the No Negative Equity Guarantee. At Gateway, the No Negative Equity Guarantee will not apply in cases where we determine that a borrower has provided fraudulent or material misrepresentation pertaining to their Reverse Mortgage loan before, during or after the contract was established. Minimum maintenance requirements are also required to be met for a borrower to qualify for the No Negative Equity Guarantee.


What can a Reverse Mortgage be used for?

A reverse mortgage can be used in the same way as any other home loan, to pay for large one-off purchases, or it can be used as an additional income stream for regular everyday purchases. Some common uses for reverse mortgages include:


  • Home renovations – Many retirees use a reverse mortgage to renovate their home to make it more comfortable for their retirement. They might add a pool and outdoor entertaining area or build a granny flat at their child’s home for when the time comes to downsize. Whether you need to upgrade your home with enhanced accessibility features or want to add some cosmetic upgrade, a reverse mortgage can help make it happen!

  • Holidays – Now that you’re retired it’s time to enjoy life more! Whether you’re heading to Europe on your dream trip or want to take off around Australia for a classic grey nomad adventure, a reverse mortgage can fund your holidays and help you make the most of your retirement.

  • Medical expenses – Unexpected medical expenses can have a crippling effect on your cash flow, especially when you’re on a tight budget. If your government pension doesn’t leave much room to manoeuvre, a reverse mortgage can free up extra cash to cover medical costs.

  • Refinancing or debt consolidation – Many retirees find themselves in a situation where they’re asset rich but cash poor. A reverse mortgage can give them access to up to $1,000,000 which can be used to cover existing debts and restructure their finances.

  • Peace of mind – Life often throws unexpected costs at us. Having a comfortable cash buffer can give you peace of mind in the case of unplanned medical bills, home repairs, legal fees or anything else life brings your way.

  • Supplement pension payments – Depending on where you live in Australia and how much you have in savings, your government pension might not cover all your living expenses. A reverse mortgage can supplement your government pension and help you keep up with everyday living costs. Note: your Reverse Mortgage loan may impact your pension payments. Read more about this below.

  • Quality of life – Your retirement should be a time of relaxation and enjoyment. A reverse mortgage can give you the quality of life that you want, with more money to spend on dining out, going to events, travelling and whatever else your heart desires.


In short, a reverse mortgage can be used for whatever you want! Learn more about Reverse Mortgages with Gateway.


Do I need to seek legal advice prior to obtaining a Reverse Mortgage?

Yes, you will need to seek independent legal advice prior to applying for a Reverse Mortgage. We highly recommend you seek out a professional financial advisor who can explain the aspects of a Reverse Mortgage and its impact on your overall financial situation. Reverse Mortgages aren’t a one-size-fits-all solution and it may not be the right option for you. We also highly recommend that you speak with your family members and any beneficiaries of your estate as a Reverse Mortgage will impact the inheritance they receive from the eventual sale of your property.


Do I have to be retired to get access to a Reverse Mortgage?

No, you don’t have to be retired to access a Reverse Mortgage, however, you must be aged over 60 years old and you must own your own home.


At Gateway Bank, you might qualify for a Reverse Mortgage if you meet the following criteria:

  • You own your own home
  • You are aged at least 60 years
  • You have sought independent legal advice prior to application


How does a Reverse Mortgage work?

A reverse mortgage is a type of loan which enables you to borrow a portion of your home’s value. Essentially it liquifies part of your property’s value and turns it to cash without the need to sell your home. As a Gateway member, you can access up to $1 million worth of your home’s value while still living in your home. So, how does it work?


  • Apply. You can apply for a Reverse Mortgage online or by printing and submitting a hard copy application.

  • Borrow. At Gateway bank you can borrow from $50,000 up to $1 million of your property’s value.

  • Line of Credit. Your funds will be released to you as a line of credit. Unlike other loan types which offer a lump sum, a line of credit means you can use the money you need as and when you need it, meaning you’ll only incur interest on the funds you actually use.

  • Repayments. There are no ongoing repayments to be made with a Reverse Mortgage. Instead, you will incur interest on the money that you use and the borrowed amount plus interest will be repaid when you sell your home, or upon the event of your death. You can also make additional early repayments to reduce the amount you’ll owe upon the loan’s conclusion.


What repayment options are available for a Reverse Mortgage?

Unlike a typical loan, you won’t need to make regular ongoing loan repayments. Your Reverse Mortgage will only need to be paid in full under the following circumstances:


  • You sell your property
  • You move out of your property (e.g. if you downsize or move into a nursing home)
  • After you’ve passed away


The sale of your home will cover the cost of your Reverse Mortgage. The No Negative Equity Guarantee will ensure the overall cost of your Reverse Mortgage will not exceed the sale price of your property.


You are also welcome to make voluntary repayments prior to the above events. At Gateway we allow unlimited penalty-free voluntary repayments on Reverse Mortgages to help minimise the interest paid at the conclusion of your loan.


Is a reverse mortgage right for me?

Reverse mortgages are a popular choice for asset rich and cash poor homeowners and for those who want to supplement their pension. A flexible reverse mortgage can be an effective way to improve your cash flow during your retirement, however, there are lots of complex factors to consider before deciding if a reverse mortgage is right for you. At Gateway Bank we require all Members applying for a Reverse Mortgage to first seek independent professional financial advice. We also strongly recommend consulting your family prior to choosing a reverse mortgage. Here are some factors to consider when deciding if a reverse mortgage is right for you.


  • Consider your future needs – Before choosing a reverse mortgage, take into account how your needs might change in 10, 20 or 30 years’ time. You may have additional healthcare costs, may be required to move into care or may need to modify your home. If you use too much of your home’s equity too soon you may be caught short.

  • Think of your family’s inheritance – A reverse mortgage will reduce the amount your family will make from the sale of your home after you pass away. It’s important to discuss your family’s needs and make an informed decision before applying for a reverse mortgage.

  • Plan your purchases – It can be tempting to splash out and use your reverse mortgage line of credit to purchase lavish holidays, new vehicles and other big-ticket items. While this is a perfectly suitable way to spend your money, it’s also important to pace yourself and make strategic decisions with your funds to ensure you have enough to last throughout your retirement.


Is a reverse mortgage expensive?

While there is no 100% accurate way to estimate how much you will end up owing on your reverse mortgage, a financial advisor can help you work out whether a reverse mortgage is a cost-effective option for you. Calculating the overall cost of a reverse mortgage is complicated as it’s dependent on a number of variables including interest rates, the value of your home, the length of your loan and how much you borrow.


As with any other loan, your reverse mortgage will incur interest. The longer your loan and the more you borrow, the higher the amount of interest to pay. To get a detailed cost estimate on your reverse mortgage get in touch today for a quote.


What if I have other people living in my home?

If you are the sole borrower of the reverse mortgage your partner and other family members may have to leave the home when the reverse mortgage ends, i.e. after you move out, move into a retirement home or pass away. To ensure your partner or other family members can stay living in your home you may want to consider entering into your reverse mortgage with them as a joint borrower. It’s important to note that all borrowers must meet the basic age requirements and other reverse mortgage borrowing criteria.


How will a reverse mortgage impact my children’s inheritance?

The amount of equity in your home will be reduced by a reverse mortgage, meaning there will be less equity to leave for your family or other inheritors. The amount borrowed coupled with the amount of time the loan is held will influence the cost of the loan and impact the amount of equity remaining. However, your family is guaranteed not to be liable for costs from your reverse mortgage thanks to our No Negative Equity Guarantee which ensures that if the sale price of your property doesn’t cover the amount owed on your reverse mortgage, the balance will be covered by Gateway.


We recommend talking to your family and other beneficiaries before applying for a reverse mortgage as well as seeking independent professional legal advice and financial advice.


What alternatives are there to a reverse mortgage?

A reverse mortgage allows you to remain in your home while accessing its equity. However, a reverse mortgage may not be the best solution for you. There are a number of alternatives which may better suit your financial situation.


  • Downsizing – Moving nearer to family or moving into a more low-maintenance and accessible home can be a simple solution. Some retirees choose to downsize in conjunction with obtaining a Reverse Mortgage, using the funds to help with the cost of renovating or moving home.

  • Moving in with family – Moving in with family members or building a granny flat on their property may offer financial and physical security during your retirement. Again, a Reverse Mortgage can be used in conjunction with moving in with family to fund renovations or the construction of a granny flat.

  • Selling assets – Selling off assets other than your home, such as cars, boats, holiday homes or shares, can free up cash for your retirement.

  • Using savings – If you have sufficient savings and/or superannuation you may be able to self-fund your retirement and live off your savings rather than accessing the equity in your home.


Will a Reverse Mortgage impact my pension?

A reverse mortgage might impact your pension or other Australian Government payments. When your Reverse Mortgage payments are used to purchase an asset such as a car or are left sitting in savings it may impact your eligibility for Government payments. We recommend contacting Centrelink on 132 300 and asking a Financial Information Service Officer how a reverse mortgage could impact your entitlements. You will also need to obtain independent advice from a professional financial advisor to assess the potential impact of a reverse mortgage on your overall financial situation.


How much equity will I have left after my Reverse Mortgage is repaid?

It’s difficult to calculate the amount of equity you will have left after your reverse mortgage is repaid as there are a number of variables involved. It will depend on the amount of equity you’ve borrowed, the length of the loan, the interest rate and the amount your home makes when it is sold. If the value of your home increases during the length of your reverse mortgage, you will have more equity remaining than if it remains the same or decreases during the lifetime of your loan. Your equity will never go into negative figures thanks to the No Negative Equity Guarantee – if your home decreases in value and the sale of your property isn’t enough to cover the loan, the balance will be paid by Gateway.


What are the benefits of having a line of credit rather than a lump sum for my reverse mortgage?

A lump sum provides instantaneous access to a large sum of money, while a line of credit allows you to draw down a predetermined amount of money. A flexible Reverse Mortgage line of credit allows you to access your money as and when you need it, whereas a lump sum leaves funds sitting in your account you may not necessarily need. The benefit of a line of credit is that it prevents you from paying unnecessary interest on the money you don’t need or use.


At Gateway, we provide the best of both worlds with easy access to your money and no unnecessary interest paid on unused money. You can access your line of credit via a Visa Eco Debit Card, online banking, telephone banking and via the Gateway app, meaning you can use your reverse mortgage funds as easily as an everyday savings account


How much can I borrow?

At Gateway our minimum loan amount for a reverse mortgage is $50,000 with a maximum of $1,000,000 and a top up minimum of $20,000.


You must be at least 60-years-old to borrow money using a reverse mortgage – the older you are, the greater the percentage of your home’s equity you’re eligible to borrow.  A 60-year-old may borrow up to 15% of their home’s value with an additional 1% able to be borrowed for each subsequent year, for example, a 75-year-old may borrow 30% of their home’s equity. If there are multiple borrowers on the reverse mortgage, the borrowing amount is based on the youngest borrower.


How can I access my money via a reverse mortgage?

With our convenient line of credit, you’ll have flexible on-demand access to your reverse mortgage funds. You’ll be able to use your money using the following banking channels:


  • Online banking – access your funds, view your balance and perform other tasks in our online banking portal.

  • Visa Eco Debit Card – make online payments, take out money at ATMs and pay at EFTPOS using a Visa Eco Debit Card.

  • Phone banking – pay bills, transfer money and more using our handy phone banking service.

  • Gateway app – view your Gateway Bank accounts, transfer money to billers and payees, move money between your accounts and more using the Gateway 2go app.


How high are reverse mortgage interest rates?

Reverse mortgage interest rates are typically higher than other loans, however, with our Line of Credit Reverse Mortgage, you only pay interest on the funds you use, potentially saving thousands in interest over the course of your loan.


Unlike some traditional reverse mortgage lenders, Gateway Bank focuses on flexibility and reducing the amount of interest you need to pay by offering a convenient Line of Credit and unlimited fee-free voluntary repayments.

Having trouble deciding what's right for you?

Use our comparison tool to help find the best home loan for you.

Gateway reserves the right to vary these interest rates at any time. Interest rates quoted are for new lending only. Existing borrowers should contact Gateway to discuss their requirements. Applications for finance are subject to our standard credit assessment criteria. Full terms and conditions are included in the loan offer. Fees and charges apply.

Comparison rates are calculated based on a loan amount of $150,000 over a 25-year term. WARNING: Comparison rates are true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Applies to standard single residential dwellings to $1 million in Metro locations and $500,000 in Regional locations (maximum land area 2.2ha/5 acres). An additional valuation fee may apply for non-standard properties.

* Negative equity protection will not apply if we determine, acting reasonably, that you engaged in fraud, or made a material misrepresentation, relating to your loan before, at, or after the time your loan contract was made.

2  Refer to our General Fees, Charges and Transaction limits. You should consider if a; Visa Debit Card, Online Banking, or Reverse Mortgage is right for you.

3 If property valued at under $1m in metro locations and $500k in regional locations with a maximum land area of 2.2ha/5 acres. Any additional valuation costs incurred for a non-standard property are payable in addition to the Settlement Fee.

4 Loan variation fees may apply when changing the structure of an existing Gateway Loan, such as a top up.

5 A Discharge fee is payable when discharging your mortgage with Gateway.

6 For other fees, view our Loan Accounts Fees and Charges.