Calculators > Mortgages > Quick reverse mortgage calculator

Quick reverse mortgage calculator

This calculator provides indicative costs involved in taking out a reverse mortgage. It will estimate the:

  • effect of compound interest
  • effect on equity
  • impact of fees and charges.
 

Quick reverse mortgage calculator

 
$
years
years
Property value now
$
Reverse mortgage interest rate
%
Rate of property growth each year
%
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Prior to changing your personal finances as a result of this calculation we recommend you view our disclaimer. Points to note:
  1. A reverse mortgage can lock the borrower into the current property unless there is a right to transfer the arrangement to a new property.
  2. Any property transfers may incur additional fees and may not be possible if the next purchase is a licence to occupy (LTO) property in a retirement village.
  3. Reverse mortgages are best suited to the "final" home (or where the amount borrowed is relatively low in relation to the value of the home).
  4. Loan to value ratio: The amount you can borrow as a percentage of what your property is worth is dependent upon age and may differ amongst providers.
Notes on this calculator
  1. This calculator is designed to give you ballpark figures only - in other words, they won't be exact to the absolute dollars and cents.
  2. You don't need to use dollar signs or commas when inserting dollar amounts. Example: 10500 not $10,500. [back]

Assumptions
  1. You own 100% of your house now.
  2. Life expectancy is based on latest NZ population mortality.
  3. Set up fees and legal fees totalling $2,000 are included (based on market assessment provided by SHERPA).
  4. Annual fees of $170 each year are included (based on market assessment provided by SHERPA).