Reverse Mortgage vs Selling Your Home: Practical Tips & Tricks to Help You Decide
When you need access to money later in life, selling your home often feels like the obvious move. But it’s not the only option — and it’s not always the right one.
A reverse mortgage can sometimes offer a way to stay in your home while accessing equity. These tips and tricks are designed to help you compare the two options clearly, calmly, and without pressure.
Tip #1: Separate the Emotional Decision From the Financial One
Start by acknowledging that selling a home isn’t just about numbers.
There’s comfort, familiarity, and independence tied to staying put. Recognising the emotional side helps you make a clearer financial decision — rather than rushing because selling feels “logical”.
Tip #2: Look at the Net Cost of Selling (Not the Sale Price)
Selling comes with real costs.
Agent fees, legal costs, moving expenses, and potential stamp duty on a new home can significantly reduce what you actually walk away with.
Comparing a reverse mortgage to the net proceeds of selling gives a far more accurate picture.
Tip #3: Think in Years, Not Months
Reverse mortgages generally work better when you plan to stay in your home for several years.
If selling is likely in the near future, the costs of a reverse mortgage may outweigh the benefit. A longer time horizon often tips the balance the other way.
Tip #4: Use Equity Gradually Where Possible
If you’re considering a reverse mortgage, avoid taking a large lump sum upfront unless it’s necessary.
Using a line of credit or staged access can reduce interest growth and preserve flexibility.
Tip #5: Compare Lifestyle Outcomes, Not Just Dollars
Ask yourself:
- Would staying improve my quality of life?
- Would moving reduce stress — or increase it?
Sometimes a choice that costs more financially delivers far more value day-to-day.
Tip #6: Stress-Test Future Scenarios
Good decisions consider future changes.
Think about:
- Health changes
- Aged care needs
- Family support
Understanding how each option performs under different scenarios helps manage risk.
Tip #7: Be Honest About Ongoing Home Costs
With a reverse mortgage, you still pay:
- Council rates
- Insurance
- Maintenance
If maintaining the home will become difficult or costly, selling may still be the better long-term option.
Tip #8: Talk to Family Early
Both selling and reverse mortgages affect inheritance.
Open conversations early can prevent misunderstandings and make future decisions smoother.
Tip #9: Compare All Options Side by Side
Selling and reverse mortgages aren’t the only paths.
Downsizing later, renting part of the home, refinancing, or accessing government support may also be viable.
Clarity comes from comparison, not assumptions.
Tip #10: Use Time as an Advantage
One of the biggest benefits of a reverse mortgage can be time.
Time to stay where you are, time to plan, and time to make decisions without pressure.
The Smart Approach
The best decisions are rarely rushed.
Whether you sell now, later, or explore a reverse mortgage, understanding the trade-offs helps you move forward confidently.
Want Help Comparing Reverse Mortgage vs Selling?
A short conversation can help you lay out the numbers, lifestyle impacts, and long-term effects side by side — so you can decide what truly works for you.
Book a Reverse Mortgage vs Selling Strategy Discussion
You don’t have to choose today — but understanding your options now puts you back in control.
