Reverse mortgage for aged care funding
Learn how families use home equity to fund aged care costs without rushing to sell the home. We compare options across 40+ lenders and tell you honestly when a reverse mortgage is not the right fit.
We compare your rates with 50+ lenders
How aged care reverse mortgage funding actually works
Aged care decisions land on a family during one of the hardest periods of life, often with weeks to act. The funding pathway is simpler than it looks once you see the steps in order.
The RAD payment deadline is 28 days from entry into care. Our process is designed to move quickly when it matters.
01
Confirm the funding goal
Step 1Pay the RAD upfront, fund ongoing daily accommodation payments, cover home modifications, or some combination. The drawdown structure follows the goal.
02
Compare across lenders
Step 2We compare aged care drawdown features across 40+ lenders. Our commission comes from the lender once your loan settles, not from you. We'll show you exactly how we're paid before you proceed.
03
Property valuation and approval
Step 3An independent valuer assesses the property at the lender's expense. Approval factors are equity, age of the borrower, and property type. Income and credit history are not the gate.
04
Drawdown structured around the deadline
Step 4A lump sum funds the RAD in time for the 28-day window. A line of credit covers DAPs and ongoing fees as they arise. Many families combine both.
05
No monthly repayments while care continues
Step 5Interest is added to the loan balance instead of being paid each month. The loan is settled when the property is sold, after the borrower permanently leaves the home.
Need a number for your situation?
The reverse mortgage calculator estimates how much equity you may be able to access for aged care funding.
Use the reverse mortgage calculatorWhat a reverse mortgage can fund in aged care
Reverse mortgage funds are flexible. Most aged care families use them for one or more of these four purposes.
Refundable Accommodation Deposit (RAD)
A lump-sum drawdown pays the RAD directly to the care home. The deposit is refunded to the estate when the resident leaves care, so the family preserves the capital.
Daily Accommodation Payments and ongoing fees
A line of credit covers DAPs and means-tested care fees as invoices arrive. Interest accrues only on the amount drawn so far, not the full approved limit.
Home modifications for ageing in place
A reverse mortgage can fund home modifications that help someone stay at home longer, including ramps, stairlifts, and bathroom changes. For many families, delaying residential care is the preferred outcome.
Medical and living expenses
A reverse mortgage can also cover in-home care, medical costs, mobility equipment, and day-to-day living expenses. Funds reach you alongside or instead of residential care funding.
A guarantee, by law
The debt can never exceed your home's sale price.
If the loan balance ever grows larger than the home's sale price, the lender absorbs the difference. Not you, not the family, not the estate. This is the No Negative Equity Guarantee, and it applies for the life of the loan no matter what the property market does.
Mandated by the National Consumer Credit Protection Act 2009 (Cth) for all reverse mortgages entered into after 18 September 2012. Moneysmart (ASIC) confirms borrowers can never owe more than the market value of the property at the time of sale.
HEAS vs private aged care reverse mortgage
HEAS and private reverse mortgages both release home equity, but they suit different aged care needs. The government scheme charges a lower interest rate; the private route is the only path to a lump sum.
When HEAS works: you need ongoing income to top up DAPs or care fees, and the lower rate compounds in your favour over a multi-year stay. When a private reverse mortgage works: you need a lump sum for a RAD inside the 28-day window, or you need flexible drawdowns that exceed HEAS limits. For the cost side of the comparison, see our current reverse mortgage rates page, and check reverse mortgage eligibility before you commit to either route.
| Services | HEAS (government scheme) | Private reverse mortgage |
|---|---|---|
| Lower interest rate | ||
| Lump sum available | ||
| Suitable for RAD payment | ||
| Ongoing fortnightly payments | ||
| Flexible line of credit | ||
| No negative equity guarantee | ||
| Wide range of property types accepted | ||
| Centrelink qualifying payment required |
What you get with HEAS (government scheme)
- Lower interest rate
- Ongoing fortnightly payments
- No negative equity guarantee
- Centrelink qualifying payment required
What you get with Private reverse mortgage
- Lump sum available
- Suitable for RAD payment
- Ongoing fortnightly payments
- Flexible line of credit
- No negative equity guarantee
- Wide range of property types accepted
When the borrower moves into permanent care
What happens to the loan, step by step
Permanent entry into residential aged care is a trigger event under every regulated reverse mortgage in Australia. It does not mean immediate repayment, and it does not mean a forced sale. The process follows clear steps with built-in protections.
For the wider mechanics, see how a reverse mortgage works.
12 months to sell the property
TimelineWhen the borrower permanently leaves to enter care, the lender is notified. The family typically has 12 months to prepare the home, choose an agent, and wait for a fair price. No panic sale, no forced auction.
If a partner remains in the home
Joint loansWhen both partners are named on the loan and one moves into care while the other stays, the loan is not repaid until the last remaining borrower permanently leaves. The surviving borrower's right to live there is protected.
What the estate receives
After settlementAny equity remaining after the loan, accrued interest, and fees are deducted belongs to the estate. If the RAD was paid via lump sum, the care home refunds that deposit to the estate as well.
Where Stryve fits in
Ongoing supportWe help families understand each of these steps before they commit, not after. The team is available by phone when a human voice helps, and our role does not end at settlement.
For the wider mechanics, see how a reverse mortgage works.
Property type and ownership
Aged care reverse mortgage approval depends on the property and on who lives there. Stryve compares across 40+ lenders, so the four checks below have more flexibility than they would with any single lender.
The family home
Houses, townhouses, and most strata-titled units are accepted across the lender panel. The property can be the borrower's primary residence or recently vacated to enter care, depending on the lender.
Retirement village title
Strata title retirement village units are accepted by most lenders, while lease and licence arrangements, common in many villages, do not qualify because the resident does not hold registered title.
Other residents in the home
If someone else lives in the property but is not on the title, lenders will need their written consent. It is a planning point, not an obstacle, and most households resolve it in one conversation with us.
Existing mortgage
An existing home loan is paid off from the reverse mortgage proceeds first, and the remaining equity is available for aged care funding. The criterion is whether enough equity remains after the existing loan is cleared.
Keep exploring
reverse mortgages
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Frequently asked questions about aged care and reverse mortgages
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