Reverse Mortgage vs Selling Your Home: Frequently Asked Questions
When you need access to money later in life, selling your home often feels like the default option. A reverse mortgage can offer an alternative — but it naturally raises a lot of questions.
Below are the most common questions people ask when comparing a reverse mortgage to selling their home.
Do I have to sell my home to access its value?
No.
A reverse mortgage allows you to access some of your home’s equity while continuing to live in it. Selling is one option — but it’s not the only way to unlock value.
Why would someone choose a reverse mortgage instead of selling?
Many people want to stay in their home for as long as possible.
A reverse mortgage can allow you to:
- Remain in a familiar home and community
- Avoid the stress and cost of moving
- Access funds gradually rather than all at once
Is selling always the cheaper option?
Not necessarily.
Selling involves agent fees, legal costs, moving expenses, and potentially stamp duty on a new purchase. When these are taken into account, the net benefit of selling may be less than expected.
What are the main downsides of choosing a reverse mortgage?
The biggest trade-off is that interest compounds over time, which usually reduces the equity left in the home.
This can affect future flexibility and inheritance, which is why the decision needs careful consideration.
Can I still sell my home later if I take a reverse mortgage?
Yes.
A reverse mortgage doesn’t lock you in forever. If you sell the home later, the loan is repaid from the sale proceeds and any remaining equity is yours.
Does a reverse mortgage mean I lose ownership of my home?
No.
You remain the legal owner of the property and stay on the title. You’re still responsible for maintenance, insurance, and council rates.
How does a reverse mortgage affect inheritance?
Because the loan balance grows over time, there is usually less equity left for beneficiaries.
This doesn’t mean there will be nothing left — but it does mean expectations should be discussed early.
What happens if the loan grows larger than the value of the home?
In Australia, reverse mortgages include a no negative equity guarantee.
This means you or your estate will never owe more than the property’s value when it’s sold.
Is a reverse mortgage a short-term solution?
Generally, no.
Reverse mortgages tend to work better as a medium-to-long-term strategy. If you expect to sell in the near future, selling outright may make more sense.
Are reverse mortgages the only alternative to selling?
No.
Other options may include downsizing later, refinancing, renting out part of the home, government support, or family arrangements. A reverse mortgage is usually one option among several.
How do I know which option is right for me?
The right choice depends on:
- How long you want to stay in your home
- Your cash flow needs
- Your comfort with using home equity
- Your lifestyle and family considerations
There’s no one-size-fits-all answer.
Should I get advice before deciding?
Yes.
Because both selling and reverse mortgages have long-term implications, talking through the options before making a decision can help you avoid pressure-driven choices and future regret.
Want to Talk Through Reverse Mortgage vs Selling?
If you’re weighing up whether to sell or explore a reverse mortgage — for yourself or a family member — a conversation can help you compare the options clearly and decide with confidence.
Book a Reverse Mortgage vs Selling Strategy Discussion
You don’t have to decide today — understanding your options is the first step.
