Which Banks Offer Reverse Mortgages in Australia?

If you are searching for which banks offer reverse mortgages in Australia, the answer may surprise you: most of the major banks no longer offer new reverse mortgage loans directly.

In the past, Australians could find products such as a NAB reverse mortgage, Commonwealth Bank reverse mortgage, Bankwest reverse mortgage or reverse mortgage Westpac option. Today, the market looks different. Reverse mortgages in Australia are now mostly offered by specialist lenders, smaller banks, mutual banks, credit unions and non-bank reverse mortgage providers.

That does not mean reverse mortgage options have disappeared. It means borrowers need to compare the right lenders, understand the rules, and speak with someone who works in this specialised area every day.

At Reverse Mortgages NSW, we help older homeowners and families understand who offers reverse mortgages in Australia, how these loans work, and what to consider before using home equity in retirement.

Quick Answer: Which Banks Do Reverse Mortgages in Australia?

The short answer is that Australia’s big four banks — NAB, Commonwealth Bank, Westpac and ANZ — generally do not offer new reverse mortgages directly to new borrowers.

Instead, current reverse mortgage loans are more commonly available through:

specialist reverse mortgage lenders
non-bank reverse mortgage companies
selected smaller banks
mutual banks and credit unions
government-backed alternatives such as the Home Equity Access Scheme

So, if you are asking “what banks do reverse mortgages?” or “which banks do reverse mortgages?”, the better question today is:

Which reverse mortgage lenders in Australia still offer suitable home equity release options for seniors?

That distinction matters because the best reverse mortgage lenders are not always household-name banks.

What Is a Reverse Mortgage in Australia?

A reverse mortgage is a type of home loan designed mainly for older homeowners. It allows you to access part of the equity in your home without having to sell the property or make regular monthly repayments.

Instead of paying the loan down each month, the interest is usually added to the loan balance. This means the debt can grow over time. The loan is usually repaid later, commonly when the property is sold, the borrower moves into aged care, or the borrower passes away and the estate is finalised.

A reverse mortgage may be used for things such as:

supplementing retirement income
paying for home repairs or renovations
clearing existing debts
funding medical, mobility or in-home care costs
helping with aged care costs
replacing a car
supporting day-to-day living expenses
assisting family, where appropriate and carefully considered

Reverse mortgages can be useful, but they are not simple. They affect your home equity, your estate, and potentially your long-term retirement plans. That is why independent advice and careful comparison are important.

Who Offers Reverse Mortgages in Australia?

If you are searching “who offers reverse mortgages in Australia” or “who does reverse mortgages in Australia”, you will find that the market includes a mix of lender types.

The main categories are:

1. Specialist Reverse Mortgage Lenders

These are lenders or finance companies that focus heavily on retirement lending and home equity release. They may offer more specialised reverse mortgage products than mainstream banks.

Specialist reverse mortgage providers often understand the needs of older borrowers better than general home loan lenders because they deal with retirement lending every day.

2. Mutual Banks and Credit Unions

Some smaller banks, mutual banks and credit unions may offer reverse mortgage loans or similar equity release products. These can vary by state, property location, borrower age and lending policy.

Availability can change, so it is important not to rely on old information found online.

3. Non-Bank Reverse Mortgage Companies

Some reverse mortgage companies are not traditional banks. These lenders may still be regulated and may provide legitimate reverse mortgage options, but the product structure, rates, fees and policies can differ.

This is where proper comparison becomes important.

4. Government Home Equity Access Scheme

The Australian Government’s Home Equity Access Scheme is not the same as a commercial reverse mortgage, but it is often compared with reverse mortgage loans. It may allow eligible older Australians to access a government loan using property equity.

This can be worth considering alongside commercial reverse mortgage lenders, especially for people who want a government-backed option.

Do the Big Four Banks Offer Reverse Mortgages?

Many Australians still search for major bank reverse mortgage products because these banks offered or discussed them in the past. However, most legacy pages and old product names are no longer useful for new borrowers.

Here is the current practical picture.

NAB Reverse Mortgage

Many people search for NAB reverse mortgage or NAB reverse mortgage rates, but NAB is not generally known as an active provider of new reverse mortgage loans today.

If you find old references to NAB reverse mortgage rates, treat them carefully. They may relate to historical products, old market commentary or outdated comparison pages.

For borrowers, the key point is this:

Do not assume NAB currently offers a reverse mortgage just because older search results mention one.

Instead, compare current reverse mortgage lenders Australia-wide and ask a specialist to check what is actually available now.

Westpac Reverse Mortgage

Searches for reverse mortgage Westpac are also common. Westpac and related brands have historically been associated with seniors equity release products, but Westpac is not generally considered a current direct provider of new reverse mortgages for new borrowers.

If you are a former customer with an old facility, your situation may be different from a new borrower applying today. Existing borrowers should speak directly with their lender about their current loan.

New borrowers should compare current reverse mortgage providers rather than relying on legacy Westpac product information.

Commonwealth Bank Reverse Mortgage

A common question is: does Commonwealth Bank do reverse mortgages?

Commonwealth Bank previously had a product known as an equity unlock or seniors equity release style loan. However, for new borrowers, Commonwealth Bank is not generally considered an active provider of new reverse mortgage loans today.

Searches such as Commonwealth Bank reverse mortgages for seniors may bring up old fact sheets or historical pages. These can explain how products once worked, but they should not be treated as proof that the product is currently available.

Bankwest Reverse Mortgage

Bankwest reverse mortgage is another common search term. Bankwest, which is part of the Commonwealth Bank group, previously had seniors equity release lending. However, like Commonwealth Bank, it is not generally treated as an active new reverse mortgage provider today.

Again, existing borrowers should contact the lender directly. New borrowers should compare current reverse mortgage options.

ANZ Reverse Mortgage

ANZ is sometimes included in searches around reverse mortgage banks, but it is not generally considered a current mainstream provider of new reverse mortgage loans.

Why Did Major Banks Leave the Reverse Mortgage Market?

The withdrawal of major banks from reverse mortgages did not mean the product disappeared. It meant the market became more specialised.

Reverse mortgages are different from standard home loans. They require:

age-based lending rules
long-term equity projections
careful suitability checks
protection for older borrowers
clear explanations of compounding interest
estate and family considerations
strict compliance obligations

For large banks, reverse mortgages became a more specialised product area. As major banks stepped back, specialist lenders and non-bank providers became more prominent.

For consumers, this creates both opportunity and risk.

The opportunity is that specialist reverse mortgage lenders may understand retirement lending better. The risk is that borrowers need to compare carefully because not every product is the same.

Reverse Mortgage Lenders Australia: What to Compare

When comparing reverse mortgage lenders in Australia, do not choose based only on brand recognition.

A well-known bank is not automatically better, and a specialist lender is not automatically right for every borrower. The best option depends on your age, property, goals, location, loan amount and future plans.

Here are the main things to compare.

1. Eligibility Age

Most reverse mortgage lenders set a minimum age of eligibility. Some may begin from 60, while others may have different criteria.

If there are two borrowers, lenders often assess the loan based on the younger borrower’s age. This can affect how much equity can be released.

2. Property Location

Some lenders operate nationally, while others may have restrictions based on state, postcode, property type or metropolitan location.

For homeowners in Sydney, regional NSW or coastal NSW, property location can affect lender choice.

3. Property Type

Lenders may treat houses, units, townhouses, retirement village properties, rural properties and high-density apartments differently.

Some properties may be acceptable to one lender but not another.

4. Loan Amount

Reverse mortgage borrowing limits are usually based on your age and property value. Older borrowers may generally be able to access a higher percentage of equity than younger borrowers.

However, the maximum amount is not always the right amount. Borrowing more than needed can increase long-term interest costs.

5. Interest Rate

Reverse mortgage rates are usually higher than standard owner-occupied home loan rates because the loan may not require regular repayments and may remain in place for many years.

When comparing rates, look at:

variable rate
fixed rate options, if available
comparison rate
compounding effect over time
whether voluntary repayments are allowed
whether interest-only payments are possible

People often search for NAB reverse mortgage rates, but current rates should be compared across active reverse mortgage lenders, not old major-bank products.

6. Fees and Charges

Compare establishment fees, valuation fees, legal fees, discharge fees, ongoing fees and any early repayment conditions.

A slightly lower rate may not always mean a better overall product if the fees or restrictions are unsuitable.

7. Drawdown Options

Some borrowers want a lump sum. Others want a regular income stream or a cash reserve they can access later.

Common reverse mortgage drawdown options may include:

lump sum payment
regular monthly payments
line of credit or cash reserve
combination structure

The right structure depends on why you need the money.

8. Repayment Flexibility

Most reverse mortgages do not require regular repayments, but some lenders allow voluntary repayments.

This can be useful if you want to reduce the impact of compounding interest over time.

9. Protections and Conditions

Modern reverse mortgage loans in Australia include important borrower protections, including negative equity protection. This means borrowers should not end up owing more than the market value of the property when the loan is repaid, provided the loan conditions are met.

Still, borrowers must understand their obligations. These may include maintaining the property, keeping insurance in place, paying council rates and not leaving the property vacant beyond allowed periods.

Are Reverse Mortgages Safe?

Reverse mortgages in Australia are regulated, and modern loans include important protections. However, “regulated” does not mean “right for everyone.”

The main risk is not usually losing the home overnight. The bigger issue is the long-term effect on equity.

Because interest compounds, the loan balance can grow over time. This may reduce how much equity remains later for aged care, downsizing, inheritance or future financial needs.

A reverse mortgage may be suitable when it is carefully structured. It may be unsuitable if the borrower does not understand the long-term cost or borrows more than necessary.

Before applying, it is wise to ask:

How much equity could remain in 5, 10, 15 or 20 years?
What happens if I move into aged care?
Can I make voluntary repayments?
Will this affect my Age Pension or benefits?
What happens if my spouse or partner remains in the home?
How will this affect my estate?
Have I discussed this with my family or adviser?
Are there cheaper or safer alternatives?

Best Reverse Mortgage Lenders: What “Best” Really Means

Many people search for the best reverse mortgage lenders or reverse mortgage reviews Australia. Reviews can be helpful, but they should not be the only basis for choosing a lender.

The best reverse mortgage lender is the one whose product fits your situation.

For example:

One lender may offer a higher loan amount.
Another may have better repayment flexibility.
Another may suit your property type.
Another may be better for regular income.
Another may be better if you want a cash reserve.
Another may suit borrowers who want to make voluntary payments.

A lender that is best for one homeowner may be wrong for another.

That is why Reverse Mortgages NSW focuses on suitability, not just lender names.

Reverse Mortgage Banks vs Specialist Lenders

Borrowers often feel more comfortable with banks because they recognise the name. But in today’s market, reverse mortgage banks are only part of the picture.

Specialist lenders may offer products that are more tailored to older homeowners. Non-bank lenders may also provide flexible structures that mainstream banks no longer offer.

The key is not whether the lender is a bank or non-bank. The key is whether the product is:

suitable
transparent
competitive
properly explained
legally compliant
structured around your long-term needs

For many borrowers, working with a specialist reverse mortgage broker can help identify options that may not be obvious from a simple Google search.

Reverse Mortgage Options in NSW

For homeowners in NSW, reverse mortgage options can depend on property location and lender policy.

A Sydney homeowner with a standard residential house may have different options from someone with a regional property, acreage, retirement village unit or coastal apartment.

At Reverse Mortgages NSW, we regularly speak with people who are not sure whether their property qualifies. Common scenarios include:

Sydney homeowners wanting to supplement retirement income
pensioners needing funds for repairs or medical costs
retirees wanting to stay in their home longer
adult children helping parents understand options
homeowners comparing downsizing with a reverse mortgage
borrowers looking to refinance an existing debt
people considering aged care funding

The right answer depends on the borrower’s goals, not just the lender list.

Alternatives to Reverse Mortgages

A reverse mortgage is only one way to access home equity. Before choosing one, consider alternatives.

Downsizing

Selling and moving to a smaller or cheaper home may release equity without taking on debt. However, it can involve stamp duty, moving costs, emotional stress and lifestyle changes.

Home Equity Access Scheme

The government Home Equity Access Scheme may suit some eligible older Australians. It has different rules, limits and repayment conditions from commercial reverse mortgage loans.

Family Support Agreement

Some families consider private arrangements where adult children help financially. This should always be documented properly with legal advice.

Renting Part of the Home

For some people, renting a room or secondary dwelling may create income without borrowing. This may not suit everyone and can have tax or lifestyle implications.

Standard Home Loan or Line of Credit

Some borrowers may consider a standard loan, but regular repayments and serviceability rules can make this difficult in retirement.

Superannuation or Pension Planning

A financial adviser may help assess whether superannuation, pension income, investments or annuities can meet the need without using home equity.

Questions to Ask Before Choosing a Reverse Mortgage Lender

Before choosing from reverse mortgage lenders, ask these questions:

Is the lender currently offering new reverse mortgage loans?
What is the minimum age?
How much can I borrow based on my age and property?
What is the interest rate and comparison rate?
Are there establishment or discharge fees?
Can I make voluntary repayments?
Can I take the funds as a lump sum, regular payment or cash reserve?
What happens if I move into aged care?
What happens if one borrower passes away?
What obligations do I have while living in the home?
How much equity may be left in future?
Could this affect my pension or aged care fees?
Should I get legal or financial advice first?

A good reverse mortgage provider or broker should welcome these questions.

Frequently Asked Questions

Which banks offer reverse mortgages in Australia?

Most major banks in Australia no longer offer new reverse mortgage loans directly. Reverse mortgages are now more commonly available through specialist lenders, selected smaller banks, mutual banks, credit unions and non-bank providers.

Does Commonwealth Bank do reverse mortgages?

Commonwealth Bank previously had a seniors equity release style product, but it is not generally considered an active provider of new reverse mortgages for new borrowers today. If you are an existing borrower, contact the bank directly.

Does NAB offer reverse mortgages?

NAB is not generally known as a current provider of new reverse mortgage loans. Searches for NAB reverse mortgage or NAB reverse mortgage rates often lead to older or historical information.

Does Westpac offer reverse mortgages?

Westpac and related brands were historically linked with seniors equity release products, but Westpac is not generally considered a current direct provider of new reverse mortgages for new borrowers.

Does Bankwest offer reverse mortgages?

Bankwest previously had a seniors equity release product, but it is not generally treated as an active new reverse mortgage provider today.

Who does reverse mortgages in Australia?

Reverse mortgages in Australia are mainly offered by specialist reverse mortgage lenders, selected smaller banks, mutual banks, credit unions and non-bank finance providers.

Are reverse mortgages only for pensioners?

No. Reverse mortgages may be used by Age Pension recipients, part-pensioners and self-funded retirees, depending on lender criteria. However, borrowing may affect pension or aged care considerations, so advice is important.

What is a reverse mortgage in Australia?

A reverse mortgage is a loan that allows older homeowners to access part of their home equity without making regular repayments. Interest is added to the loan and the debt is usually repaid when the property is sold or the borrower leaves the home permanently.

Are reverse mortgages expensive?

Reverse mortgage interest rates are often higher than standard home loan rates, and interest compounds over time. The total cost depends on the rate, loan amount, time period and whether any repayments are made.

What are the best reverse mortgage lenders?

The best reverse mortgage lender depends on your age, property, location, borrowing needs and long-term goals. The right lender is not always the biggest brand.

Final Thoughts: Compare Current Lenders, Not Old Bank Names

If you are researching which banks offer reverse mortgages in Australia, it is important to know that the market has changed.

The big banks are no longer the main place to look. Today, reverse mortgage loans are more commonly provided by specialist lenders, selected smaller banks, mutual banks, credit unions and non-bank providers.

That means borrowers need current information, careful comparison and clear guidance.

At Reverse Mortgages NSW, we help homeowners and families understand their reverse mortgage options in plain English. Whether you are comparing lenders, checking eligibility or trying to understand whether a reverse mortgage is right for you, getting the right guidance early can make a major difference.

Speak With Reverse Mortgages NSW

Not sure who offers reverse mortgages in Australia today?

Speak with Reverse Mortgages NSW to compare current reverse mortgage lenders, understand your options and make a more informed decision before using your home equity.

Disclaimer:

This guide provides general information only and does not constitute financial, legal or taxation advice. Reverse mortgage suitability depends on your personal circumstances, property, age, income, Centrelink position and long-term plans. You should consider seeking independent financial and legal advice before applying for a reverse mortgage.