Using a reverse mortgage to help the kids
Give a hand without giving everything away
Most parents never stop wanting to help their children. Whether it’s a house deposit, school fees for the grandkids or just a bit of breathing space, that urge to lend a hand doesn’t fade with age. A reverse mortgage can make it possible by letting you use some of the equity in your home to support your family – without selling or dipping deeply into savings.
You’ve spent years building value in your home. Now, you can use part of it to give your loved ones a head start while still protecting your own comfort and independence.
How it works
If you’re over 60 and own your home, a reverse mortgage allows you to access some of the equity you’ve built up over time. You can choose to draw a lump sum or smaller amounts as needed, depending on your plans and how much you’d like to contribute.
The loan doesn’t require regular repayments. Interest is added to the balance over time, and the total is repaid later – usually when you sell your home, move into aged care or pass away. You remain the owner of your property and can stay in it for as long as you like.
Why use a reverse mortgage to help your family?
For many, it’s about timing. You can help your children when it matters most – buying their first home, covering education costs or navigating a tough patch – rather than waiting to leave an inheritance.
It’s rewarding to see your support make a difference now, while you’re around to share in it.
Pros and cons
For parents wanting to lend a hand, a reverse mortgage offers a flexible way to do it without stretching your budget. You decide how much to release, when to use it, and how best to help – without the pressure of regular repayments. Unlike withdrawing from super or selling investments, it allows you to maintain your long-term financial position while still giving meaningful support.
That said, over time, interest is added to the balance, which means the amount you owe can increase and the equity in your home can decrease. This might leave a smaller estate later and could affect government benefits such as the Age Pension. If you plan to gift a larger amount, Centrelink’s gifting rules may also apply, so it’s worth considering the timing.
Compared to options like personal loans, redrawing on a mortgage or dipping into super, a reverse mortgage is often simpler and less stressful – particularly for those on fixed incomes. It lets you help family without taking on new repayments or compromising your own security.
It’s best to have open conversations with loved ones and get professional guidance before proceeding. A good broker will help you structure everything carefully so you can share the rewards of your hard work now while keeping your own future secure. Helping the kids shouldn’t mean handing over your peace of mind.
Why choose 808 Seniors Finance
We’ve been helping Australians use reverse mortgages to support their families for more than 20 years. Our job is to keep things clear, comfortable and pressure-free, so everyone understands how it works before moving ahead.
We know that helping family is as emotional as it is financial. That’s why we listen first, guide gently and focus on keeping you secure while helping those you care about most.