Is a reverse mortgage the only way to stay in my home?

No. A boarder, the Rates Rebate, spending less, or help from family can bridge a gap. A reverse mortgage is for when those do not cover what you need and a loan with repayments does not fit.

Is home reversion the same as a reverse mortgage?

No. Reversion is a sale of a share of the home. A reverse mortgage is a loan you still owe, with interest added. They have different costs and different effects on what you leave behind.

Where do I start if I can afford repayments?

A top up or a refinance is the usual place to start. You can read about topping up a mortgage on this site, and a broker or lender can talk through a loan you repay.

Reverse mortgages

Alternatives to a reverse mortgage

A reverse mortgage is one option for a homeowner who wants to stay put and cannot comfortably make repayments. It is not the only one, and it is not a fit for everybody.

Downsizing

Selling and buying a cheaper home turns equity into cash without a compounding loan. The costs are the sale, the purchase, the move, and finding a home you actually want. Our next home page covers the lending side of a move.

A top up

If your income covers repayments, a standard top up is usually a lower interest rate than a reverse mortgage, and you pay the interest as you go so the balance does not compound in the same way. It does mean a payment each fortnight or month. Our top up page is the place to start if that fits.

Home reversion

Home reversion means selling a share of your home, rather than borrowing against it. You receive cash or an income, and you no longer own that share. There is no interest compounding on a loan, but you have given up part of any future rise in value. It is not widely offered in New Zealand.

A 2024 Retirement Commission briefing used an illustration in which about 35% of the home was sold, and the payments came to about 25% of the starting value, before fees, spread over time. That was an illustration, not a product on offer. Ask your lawyer to read the documents of any real scheme.

Rates Rebate, boarders, subdividing

The Rates Rebate can reduce the rates bill for a low-income household. You apply through your council. It does not release a lump sum, and it does not suit every income.

A boarder brings rent, and also sharing your home. That income can affect tax and some forms of extra help. It is reversible in a way a loan is not.

Subdividing, or selling a section, can release money if the title and the council allow it. It takes time, consent costs, and it changes the property. It is a project, not a loan.

Family can help, by gift or by a private loan. Write it down, and ask your lawyer to look at it if the house is involved. Help that is really pressure is a reason to slow down, not a reason to sign.

The decision is yours as the homeowner. Family may have a view, and it is worth talking it through, but the choice is yours.

Get in touch about a reverse mortgage

General information only, not advice. We're a referral service and may receive a commission. If a reverse mortgage settles, the lender may pay us a referral fee.

Questions

Is a reverse mortgage the only way to stay in my home?: No. A boarder, the Rates Rebate, spending less, or help from family can bridge a gap. A reverse mortgage is for when those do not cover what you need and a loan with repayments does not fit.
Is home reversion the same as a reverse mortgage?: No. Reversion is a sale of a share of the home. A reverse mortgage is a loan you still owe, with interest added. They have different costs and different effects on what you leave behind.
Where do I start if I can afford repayments?: A top up or a refinance is the usual place to start. You can read about topping up a mortgage on this site, and a broker or lender can talk through a loan you repay.