When was the last time you reviewed your equity release loan?

Here’s some good news many retirees may have missed. While interest rates on many forms of borrowing have climbed in recent years, some equity release lenders have been moving in the opposite direction.

For Australians over 60, it’s a timely reminder that an equity release loan arranged several years ago may no longer be the most competitive option available.

What this means for you

The Reserve Bank cash rate sits at 4.35 per cent in May 2026 following a period of increases. Ordinarily, higher cash rates place upward pressure on borrowing costs.

However, the equity release market has become increasingly competitive. While broader borrowing costs have remained elevated, some specialist equity release lenders have recently reduced rates or kept them stable, creating a more competitive environment for borrowers.

If you own your home and have ever wondered whether the wealth tied up in it could help support a more comfortable retirement, now may be a worthwhile time to explore your options. If you already have a reverse mortgage, it’s also an opportunity to check whether your current arrangement remains competitive.

What you need to know

The market has shifted in recent years. Heartland, which holds a significant share of Australia’s equity release market, has reduced its advertised rate for new customers during 2026.

Competition appears to be playing a role. Deloitte estimates Australians over 60 hold around $3 trillion in residential home equity, yet only a small fraction has been accessed through equity release products.

That level of untapped equity has attracted increased interest from lenders looking to grow their presence in the sector. For newer entrants, competitive pricing can be one way to differentiate themselves.

Reverse mortgages are long-term financial commitments and may not suit everyone. Understanding the potential impact on future borrowing capacity, estate planning and aged care considerations is important before making any decision.

If you’d like to explore your options, our e‑book breaks down the different ways to access home equity and what each one means for your long‑term finances.

If you took out your equity release loan years ago

There is a large group of borrowers for whom this may be particularly relevant.

Several major banks, including Commonwealth Bank, Westpac, Macquarie and Bankwest, previously offered reverse mortgages before withdrawing from the market between 2017 and 2019.

If your loan remains with one of these lenders, your existing facility continues under the agreed terms. However, there are two important considerations.

First, because these institutions are no longer actively participating in the market, you may have limited ability to access additional funds if your circumstances change.

Second, a rate established several years ago may no longer reflect today’s more competitive market. As with any financial product, it can be worthwhile checking whether your current arrangement still represents good value.

Why it’s worth checking your loan

Most Australians periodically compare electricity, insurance and phone plans to make sure they’re still getting value for money. Yet many people never revisit a loan they’ve held for years.

A reverse mortgage should be no different. Circumstances change, products evolve and lenders adjust their pricing.

Sometimes a review confirms your existing arrangement remains the best fit for your needs. Other times it highlights alternative options that may be worth considering. Either way, you gain a clearer understanding of where you stand.

It’s also important to remember that switching is not always the right answer. Moving a reverse mortgage can involve establishment fees, discharge costs and other considerations. Any decision should be based on your individual circumstances, costs and long-term objectives.

Talk it through with someone who understands the market

You don’t have to navigate the process alone.

Money at 60 is a licensed broker regulated by ASIC and operates under a Best Interests Duty. That means any recommendation provided must be in the client’s best interests. It was established by Starts at 60 to help Australians better understand their retirement funding options. Our specialists compare products across major lenders and have helped hundreds of Australians explore whether accessing home equity may support their retirement goals.

Whether you’re considering a reverse mortgage for the first time or already have one in place, understanding the options available today can help you make more informed decisions. A simple review may provide valuable clarity about whether your current arrangement remains competitive and aligned with your needs.

The conversation is free, there is no obligation, and you remain in control of every decision.

Explore your options, our e‑book breaks down the different ways to access home equity and what each one means for your long‑term finances.

Chris Moutzikis is the CEO & Principal Retirement Funding Specialist, Money at 60

Compliance disclosure

Money at 60 Pty Ltd, ABN 23 694 415 337. Authorised Credit Representative CRN 577820 under Invictus Finance Solutions Pty Ltd, Australian Credit Licence 392962. AFCA member.

This content contains general information only and is not personal financial advice.