Coastal retirees are drawing on home equity rather than selling as superannuation shortfalls drive demand
Four of New South Wales' five highest-ranking postcodes for reverse mortgage rates are coastal locations, according to new data from broker Seniors First.
Wamberal (2259) and The Entrance (2261) on the Central Coast, Byron Shire (2486) and Jervis Bay (2540) on the South Coast, and Northbridge (2068) on Sydney's Upper North Shore make up the state's top five postcodes by reverse mortgage activity.
"These are the places many Australians dream of retiring to, the Central Coast, Byron Shire, the South Coast, so it makes sense homeowners there are finding ways to stay and make the most of it, rather than cashing out and moving on," said Darren Moffatt, chief executive of Seniors First.
Moffatt (pictured right) attributed the growing uptake partly to a widening gap between superannuation balances and the actual costs of retirement.
"We are seeing people who have worked hard, paid off their home and built significant equity who now find superannuation alone doesn't match the reality of retirement," he said.
Rather than sell, many retirees are opting to release equity to remain in their homes and communities. Recent house price falls, linked to federal tax changes, have also led some owners to defer selling and consider equity release instead.
The broader market opportunity is substantial. Deloitte's 2026 Australian Reverse Mortgage Survey found the sector has drawn on only around 1% of the estimated $3 trillion in housing equity held by Australians aged 60 and over — a figure that points to significant room for brokers with expertise in the product.
Gateway Bank reports a similar pattern among its customers. "We're hearing this again and again. They would rather stay in the home and the community they love than sell up and start over somewhere new," said Lexi Airey, chief executive of Gateway Bank.
More than 5.5 million Australian homeowners are aged over 55, with almost 2.5 million expected to retire within the next decade. The number of Australians currently holding a reverse mortgage stands at more than 40,000, with over 8,000 new products taken out in the past year.
Moffatt highlighted the No Negative Equity Guarantee as the principal borrower protection, which ensures that borrowers can never owe more than the value of their home.
ASIC reinforced these protections in April, formally mandating the guarantee across all reverse mortgage contracts and introducing a 45% loan-to-value cap for borrowers aged 90 and over.
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