Complete breakdown of all fees, interest rates, and long-term costs for reverse mortgages and home reversion
Fees and interest rates shown here are illustrative examples only and vary between lenders and over time. Confirm current rates and fees with the lender or your Evolve adviser before making any decision.
| Fee Type | Typical Cost | Details |
|---|---|---|
| Application Fee | $500 - $2,000 | Processing and assessment costs |
| Property Valuation | $800 - $1,500 | Independent registered valuer |
| Legal Fees | $1,000 - $2,500 | Mandatory independent legal advice |
| Administration Fee | $0 - $1,000 | Some providers charge, others don't |
| TOTAL UPFRONT | $3,000 - $6,000 | Can be added to loan amount |
Indicative Interest Rates (as of 2026, figures vary by lender):
Some providers charge ongoing fees. The figures below are indicative only and can change:
For current, sourced provider figures, see our Heartland vs SBS comparison.
The main cost of a reverse mortgage is compound interest. The table below is an illustrative example only, showing how a $100,000 loan could grow at different indicative interest rates. Actual figures vary by lender and over time.
| Years | 6% Interest | 7% Interest | 8% Interest |
|---|---|---|---|
| 5 years | $133,823 | $140,255 | $146,933 |
| 10 years | $179,085 | $196,715 | $215,892 |
| 15 years | $239,656 | $275,903 | $317,217 |
| 20 years | $320,714 | $386,968 | $466,096 |
| 25 years | $429,187 | $542,743 | $684,848 |
Important: The no negative equity guarantee means you'll never owe more than your home's sale value, regardless of how much the debt grows.
Home reversion has similar upfront fees to reverse mortgages. The following ranges are indicative only and vary by provider:
Instead of interest charges, home reversion's cost comes from receiving less than market value for the share you sell:
The figures below are an illustrative example only and vary by provider.
• Market value of 30%: $210,000
• Typical payout (indicatively 40-60% of share value): $84,000 - $126,000
• "Discount": $84,000 - $126,000
This discount compensates the company for waiting until you sell or move to receive their share.
Benefits of Home Reversion:
The following is an illustrative example only, using hypothetical figures. "Sarah", age 70, owns an $800,000 home and wants to access $150,000 for renovations. Here's how the two options might compare (actual figures vary by lender and market conditions):
Initial
Borrow: $150,000
Plus fees: $4,500
Total loan: $154,500
After 10 years (7% interest)
Debt: ~$304,000
Home value (assume 3% growth): $1,075,000
Remaining equity: $771,000
After 20 years
Debt: ~$598,000
Home value: $1,445,000
Remaining equity: $847,000
Initial
Sell 30% share
Receive: ~$150,000
Less fees: $145,500
After 10 years (3% growth)
Company owns: 30% of $1,075,000 = $322,500
You own: 70% = $752,500
Your equity: $752,500
After 20 years
Company owns: 30% of $1,445,000 = $433,500
You own: 70% = $1,011,500
Your equity: $1,011,500
Use our free calculator to see exactly how much equity release would cost you based on your age, home value, and borrowing needs.