Using a reverse mortgage for renovations
Make your home work better for you
Sometimes a home just needs a few updates to match the way you live now. A reverse mortgage can give you the funds to make those changes without dipping into your savings or selling the family home.
Common projects include: installing a walk-in shower or bathroom on the ground floor, widening doorways for mobility aids, adding air conditioning, creating a self-contained space for aging parents or adult children, or updating 1970s kitchens and bathrooms.
How it works
If you’re over 60 and own your home, a reverse mortgage lets you access some of the equity you’ve built up over the years. That money can go towards small updates or bigger projects, from a fresh coat of paint to a full remodel.
You stay in your home for as long as you like, and the loan is repaid when you sell or move out. There are no regular repayments unless you choose to make them, giving you flexibility and freedom.
It’s a simple way to make your home more comfortable and better suited to your lifestyle.
What can you actually borrow?
Most of our clients access between $30,000 and $150,000 for renovations, depending on their home's value and their age. The older you are and the more equity you have, the more you can typically access. We'll help you understand your specific borrowing capacity in plain English – no calculator required.
Why use a reverse mortgage for renovations?
Renovations are often about quality of life. For some people, that means modernising an older home or improving comfort; for others, it’s about making everyday living easier with features like wider doorways, ramps or energy-efficient upgrades.
A reverse mortgage means you don’t have to draw on super or rely on credit cards, which usually have higher interest rates and short repayment terms. It lets your home fund its own improvements, so you can keep your savings for what matters most.
Pros and cons
One of the best parts of using a reverse mortgage for renovations is being able to make the changes you want, right when you want them. You can update your home now – rather than waiting – and enjoy the results straight away. Because the loan is secured against your home, interest rates are generally lower than credit cards or personal loans, and you decide how much to draw and when.
The trade-off: Because there are no required repayments, interest compounds over time, which means your loan balance grows. This reduces your available equity and the inheritance you might leave. For a $50,000 renovation loan at 6.5% annual interest over 15 years, the total amount owing would be approximately $130,000. Many clients feel this is worthwhile because they're able to live comfortably in a home they love – but it's a decision worth making with family input and professional guidance.
For many homeowners, the lifestyle and comfort improvements today far outweigh that future cost – especially when the decision is made with clear, professional advice. A good broker can help you strike the right balance, ensuring your renovations add value to your home and peace of mind to your life.
Why choose 808 Seniors Finance
We’ve been helping Australians use reverse mortgages for home improvements for more than 20 years. We’ll explain your options clearly, involve your family if you’d like, and make sure the process feels simple and stress-free.
And we love hearing about your renovation plans – whether it’s a brighter kitchen, a safer bathroom or space for family to visit more often. After all, if you’ve spent decades looking after your home, it’s only fair it starts looking after you.
At 808 Seniors Finance, it’s about helping you feel comfortable and proud of the home you love.