Retiring with a mortgage in Australia: older home owners ...

Mortgage debt remained part of later life for 971,500 owner-occupier households aged 55 and over in 2019–20, including 225,700 where the reference person was 65 or older. These figures show that mortgage debt is not limited to working-age households. For some older Australians, home loan repayments continue into the years when employment income may fall, and retirement income becomes more important.

Key findings

971,500

Households aged 55 and over had a mortgage in 2019–20, including 225,700 households aged 65 and over.

43%

Of households aged 55–64 were owner-occupiers with a mortgage in 2019–20, falling to 13.4% at ages 65–74.

$405/wk

Average weekly housing costs for mortgaged households aged 55–64 in 2019–20, vs $61/wk for outright owners.

$1.835m

Average household net worth at ages 65–69 in 2019–20, while average weekly income fell to $1,564.

Section 01Mortgage debt

How many Australians retire with mortgage debt?

In 2019–20, 971,500 owner-occupier households aged 55 and over carried a mortgage, including 225,700 where the reference person was 65 or older. This shows that mortgage debt is no longer limited to working-age households and remains part of later life for a significant number of older Australians.

Outright ownership remains the most common arrangement in later life, and most older Australians reach retirement without a mortgage. However, national home ownership rates have declined over time. Home ownership fell from 70% of all households in 2006 to 66.0% in 2021. Of that 66.0%, 35% owned with a mortgage and 31% owned outright.

This shift matters because mortgage debt is lasting longer for some older households. Buyers entering the market later can carry home loan debt further into older age, changing the mortgage profile of pre-retirement and retirement-age households.

Close to 9.8 million households were counted nationally in the 2021 Census. That dataset captures tenure patterns but not housing costs, which is why the age-by-cost comparisons in this article are drawn from the ABS Survey of Income and Housing 2019–20.

Mortgaged households aged 55 and over, 2019–20

Owner-occupier household counts by age band, Australia, 2019–20

The count falls from 743,100 at ages 55–64 to 39,800 at ages 75 and over, with the 55–64 group accounting for more than three-quarters of the total.

Source: ABS Housing Occupancy and Costs 2019–20, table 2.

About the data

The ABS Survey of Income and Housing provides the most detailed official breakdown of housing tenure by age. The most recent available microdata with full age-by-cost breakdowns covers 2019–20. ABS stated that 2023–24 survey outputs were not released. The 2021 Census captures tenure patterns at a national level but does not include housing costs.

Section 02Mortgage debt by age

Mortgage debt by age group in Australia

Mortgage debt was most common among households aged 55–64 in 2019–20, when 43% were owner-occupiers with a mortgage. That share fell to 13.4% at ages 65–74 and 3.7% at ages 75 and over. The proportion declines sharply with age, but it does not disappear entirely.

Outright ownership rises across the same age bands. At ages 55–64, 36.1% of households owned without a mortgage. By ages 65–74, that share had risen to 68.1%, and for households aged 75 and over it reached 79.4%. Total home ownership remained high across all three age groups, at 79.1%, 81.7% and 83% respectively.

Most older Australians own outright, but the 55–64 age group still has the highest mortgage exposure among older age groups. This makes the pre-retirement decade an important part of the mortgage debt story.

The longer-run trend also shows a decline in outright ownership among older households. The share of households aged 65 and over owning outright fell from 79% in 2003–04 to 74% in 2017–18, a five-percentage-point decline over 14 years. Among older couple households in 2017–18, 11% still carried a mortgage, compared with 6% of older lone-person households.

Mortgage incidence falls sharply with age

Percentage of households in each age band that are owner-occupiers, by tenure type, 2019–20

Owner with mortgage
Owner without mortgage

Mortgage incidence falls from 43.0% at ages 55–64 to 3.7% at ages 75 and over, while outright ownership rises with age.

Source: ABS Housing Occupancy and Costs 2019–20, table 6.

Mortgage debt by age group, Australia, 2019–20

Owner-occupier households with a mortgage, as a share of all households and by count

Age band	Owner with mortgage	Owner without mortgage	Total ownership	Mortgaged households
55–64	43.0%	36.1%	79.1%	743,100
65–74	13.4%	68.1%	81.7%	188,600
75 and over	3.7%	79.4%	83.0%	39,800
55 and over (total)	—	—	—	971,500

Percentages are shares of all households in each age band, not just home owners. Sub-band figures have been independently perturbed by the ABS and may not sum exactly to published aggregates.

Source: ABS Housing Occupancy and Costs 2019–20, table 6.

Outright ownership among older households has declined

The share of households aged 65 and over owning outright fell from 79% in 2003–04 to 74% in 2017–18, a five-percentage-point decline over 14 years. Outright ownership remains common in later life, but has become less dominant among older households over time.

Section 03Retiring with a mortgage

Why are more Australians retiring with mortgage debt?

Home ownership among 50–54-year-olds fell from 80% in 1996 to 72% in 2021, a drop of eight percentage points over 25 years. This means households approaching retirement are entering their later working years with lower ownership rates than earlier generations. Those who buy later may also carry mortgage debt further into later life.

The national picture shows a similar shift. The share of all Australian households owning with a mortgage rose from 32.1% in 1999–00 to 36.8% in 2019–20, while the share owning outright fell from 38.6% to 29.5% over the same period.

Later home purchase can extend mortgage debt into older age. A borrower entering the market at 38 rather than 28 with a 25- or 30-year loan term may not clear that loan until their mid-to-late 60s. This example does not claim an average mortgage payoff age, but shows why later entry into home ownership can shift mortgage debt closer to retirement.

Together, lower ownership rates among people approaching retirement and the higher share of mortgaged ownership across all households help explain why more Australians are carrying home loan debt into older age.

Outright ownership has declined, 1999–2020

National household tenure shares (%), all households, selected years 1999–00 to 2019–20

Owner without mortgage
Owner with mortgage
Private rental

Outright ownership declined between 1999–00 and 2019–20, while mortgaged ownership and private rental became more common. Government rental is excluded but accounted for approximately 3 to 5% throughout.

Source: ABS Housing Occupancy and Costs, time series, 1999–00 to 2019–20.

About the data: mortgage payoff age is not directly published

No official source reviewed for this article publishes a national time series showing the age at which borrowers pay off their mortgages. This article does not claim a specific payoff age. Instead, it uses official cohort and tenure evidence, including declining outright ownership among 50–54-year-olds and the rising share of households carrying mortgage debt into older age.

Section 04Repayments in retirement

Retirees with mortgages face higher weekly housing costs

Mortgaged owner-occupiers aged 55–64 had mean weekly housing costs of $405 in 2019–20, compared with $61 for outright owners in the same age group. That created a gap of $344 per week. At ages 65 and over, the gap was $229 per week, with mortgaged owners paying $279 per week compared with $50 for outright owners. At ages 75 and over, the gap narrowed to $130 per week, based on $177 for mortgaged owners and $47 for outright owners.

These figures cover total housing costs, not mortgage repayments alone. They include loan repayments, rates, insurance, maintenance and body corporate fees. The all-tenure averages, at $263, $99 and $73 per week across the three age bands, are lower than the mortgaged-owner figures because they include households that own outright and have much lower weekly housing costs.

The cost gap has also widened over time. Mean weekly housing costs for mortgaged owners across all Australian households rose from $351 in 1999–00 to $493 in 2019–20. For outright owners, costs rose from $36 to $54 over the same period. The difference between the two groups widened from $315 per week to $439 per week.

Mortgaged households face higher weekly housing costs in retirement

Mean weekly housing costs by age band and tenure type, owner-occupiers, 2019–20

Outright owner
Mortgaged owner
All tenure types

The gap between mortgaged and outright owners narrows with age, but mortgaged owners aged 65 and over still paid $229 more per week than outright owners.

Source: ABS Housing Occupancy and Costs 2019–20, table 3.

Weekly housing cost by age and tenure, 2019–20

55–64, outright owner

$61

per week

55–64, mortgaged owner

$405

per week

55–64, all tenures

$263

per week

65+, outright owner

$50

per week

65+, mortgaged owner

$279

per week

75+, mortgaged owner

$177

per week

The wider long-term gap is also clear in the time series. Mean weekly costs for mortgaged owners peaked at $500 in 2011–12 before easing to $493 in 2019–20. Outright owner costs remained much lower throughout, ending at $54 per week.

Weekly housing costs for mortgaged owners have risen since 1999

Mean weekly housing costs ($), all Australian households, by tenure type, 1999–00 to 2019–20

Owner with mortgage
Private rental
Owner without mortgage

Figures cover total housing costs for all Australian households in each tenure type. The gap between mortgaged and outright owner costs grew from $315 to $439 per week between 1999–00 and 2019–20.

Source: ABS Housing Occupancy and Costs, time series, 1999–00 to 2019–20.

Section 05Housing costs after 55

How housing costs change after age 55 in Australia

Housing-cost pressure was highest among lower-income households aged 55–64, with 25% spending more than 30% of their gross income on housing costs in 2019–20. That proportion fell to 13% at ages 65–74 and rose slightly to 9% at ages 75 and over.

The all-tenure averages of $263, $99 and $73 per week for the three age bands do not show the full cost difference for households still carrying a mortgage. Those averages are weighted toward households that own outright and have lower weekly housing costs.

For mortgaged households, the cost gap was $344 per week at ages 55–64, based on $405 for mortgaged owners compared with $61 for outright owners. At ages 65 and over, the gap was $229 per week, and at ages 75 and over it narrowed to $130 per week. The gap narrows with age, but it remains visible for older households that still have a mortgage.

Housing cost gap: outright vs mortgaged owners, by age, 2019–20

Mean weekly housing costs ($), owner-occupier households, by tenure and age band

Outright owner costs
Additional cost from mortgage

The gap narrows from $344 per week at ages 55–64 to $130 per week at ages 75 and over. All figures cover total housing costs.

Source: ABS Housing Occupancy and Costs 2019–20, table 3.

25%

Of lower-income households aged 55–64 spent more than 30% of gross income on housing costs in 2019–20.

13%

Of lower-income households aged 65–74 spent more than 30% of gross income on housing costs in 2019–20.

Of lower-income households aged 75 and over spent more than 30% of gross income on housing costs in 2019–20.

Section 06Superannuation and mortgage debt

Mortgage debt affects super and pension income in retirement

Government pension or allowance was the most common main income source for retirees in 2024–25. It was the primary income source for 42.4% of retired men and 41% of retired women. Superannuation was the main source for 34.6% of retired men and 23.1% of retired women.

The share of retirees relying mainly on superannuation has increased over time, rising from 20% in 2014–15 to 28% in 2024–25.

There were 4.5 million retirees aged 45 and over in 2024–25. People who retired during that year left the workforce at an average age of 63.8 years, while those still working expected to retire at 65.6 years on average.

The maximum Age Pension from 20 March 2026 was $1,200.90 per fortnight for a single person and $1,810.40 per fortnight for a couple combined. Mean weekly housing costs for a mortgaged owner aged 65 and over were $279 in 2019–20 — equivalent to roughly 46% of the weekly equivalent of the maximum single Age Pension.

Total superannuation assets stood at $4.4 trillion as at March 2026, with benefit payments of $143.5 billion over the preceding year. These payments comprised $79.7 billion in lump sums and $63.8 billion in pension payments.

Main income source for retirees, by sex, 2024–25

Proportion of retired persons aged 45 and over citing each source as their main income

Men
Women

Government pension or allowance was the most common source for both men and women. 'Other' includes own business income, investments and other income sources not shown separately.

Source: ABS Retirement and Retirement Intentions, Australia, 2024–25.

Super as the main income source has grown over the past decade

The proportion of retirees nominating superannuation as their main income rose from 20% in 2014–15 to 28% in 2024–25. This shows the growing role of superannuation in retirement income as the compulsory superannuation system matures. The Superannuation Guarantee rate reached 12% on 1 July 2025.

Section 07Retirement income

Mortgage costs take up more pension income for older home owners

Mean weekly housing costs for a mortgaged owner aged 65 and over were $279 in 2019–20, compared with $50 for an outright owner in the same age group. Using the maximum single Age Pension from 20 March 2026 as a current income benchmark, those housing costs were equivalent to roughly 46% of the weekly pension amount before other expenses. For an outright owner, the equivalent housing-cost share was around 8%.

The all-tenure average of $99 per week for households aged 65 and over does not show the position of households still carrying a mortgage. Mortgaged owners aged 65 and over had weekly housing costs around 2.8 times the all-tenure average.

Superannuation was the main income source for 23.1% of retired women in 2024–25, compared with 34.6% of retired men. Where retirement income is lower or more reliant on government pension payments, ongoing mortgage-related housing costs can take up a larger share of income.

Australians born after 30 June 1964 can generally access superannuation from age 60, either as a lump sum or through a transition-to-retirement income stream while still working. Those born earlier have a preservation age between 55 and 59, depending on birth year.

Age Pension income versus weekly housing costs, ages 65 and over

Maximum fortnightly Age Pension rate (from 20 March 2026) and weekly housing cost comparisons

Mortgaged owners had housing costs of $279 per week, equal to about 46% of the weekly pension amount. Outright owners had housing costs of $50 per week, equal to about 8%. This is a scale comparison, not a current household budget model.

Source: ABS Housing Occupancy and Costs 2019–20, table 3; Services Australia, Age Pension rates from 20 March 2026.

Section 08Home equity and retirement income

Home equity rises as retirement income falls

Average household net worth peaked at $1.835 million for households aged 65–69 in 2019–20, the highest of any age group. For households aged 60–64, it was $1.601 million, before falling to $1.509 million at ages 70–74 and $1.167 million at ages 75 and over.

Average weekly gross household income moved in the opposite direction. It was $2,245 per week at ages 60–64, then fell to $1,564 at ages 65–69, $1,330 at ages 70–74 and $1,045 at ages 75 and over.

Housing equity forms the largest component of net worth for many households in these age groups. This creates a gap between household wealth and weekly income, particularly for older home owners with high property wealth but lower retirement income.

The family home is generally exempt from the Age Pension assets test. A household with substantial home equity may still receive a full or partial pension, depending on other assets and income. For a household still carrying a mortgage, the outstanding loan reduces net equity, but the principal home is treated differently from other real estate under the assets test.

Net worth peaks while income falls, 2019–20

Average household net worth (left axis, $million) and average weekly gross household income (right axis, $) by age band

Average net worth
Average weekly income

Net worth includes all assets minus liabilities, including the primary residence. Weekly income refers to average gross household income from all sources. Net worth peaks at $1.835 million at ages 65–69.

Source: ABS Household Income and Wealth, Australia, 2019–20.

$1.835m

Average household net worth at ages 65–69 in 2019–20, the highest of any age band.

$1,564

Average weekly gross household income at ages 65–69 in 2019–20, down from $2,245 at ages 60–64.

$1,045

Average weekly gross household income at ages 75 and over in 2019–20, the lowest of the older age groups shown.

Section 09Reverse mortgages and equity release

Reverse mortgages and home equity release in Australia

Under the Home Equity Access Scheme (HEAS), combined pension and loan payments can reach up to 150% of the maximum pension rate. For a single person on the full Age Pension of $1,200.90 per fortnight, the maximum additional HEAS loan payment is $600.45 per fortnight. The interest rate on HEAS loans is 3.95% per year, compounded fortnightly.

The scheme is available to people of Age Pension age or older who own Australian real estate. It provides a voluntary, non-taxable loan secured against the property. Up to two lump-sum advances are allowed in any 26-fortnight period, with each advance capped at up to 50% of the maximum annual pension rate.

Private reverse mortgages are separate products offered by private lenders. ASIC's Moneysmart guidance states that a person aged 60 can typically borrow around 15 to 20% of their home's value, with the limit increasing by approximately one percentage point for each year over age 60.

Reverse mortgages taken out from 18 September 2012 include negative equity protection. This means the amount owed under the loan cannot exceed the value of the home.

No official source publishes a comprehensive national volume series for private reverse mortgages in Australia. The available official and regulator information focuses on scheme rules, borrowing limits and consumer protections, rather than the scale of private-market activity.

Home Equity Access Scheme (HEAS)

$600.45

Maximum fortnightly loan for single person (from March 2026)

Available from Age Pension age
Secured against Australian real estate
Non-taxable voluntary loan
Interest rate: 3.95% p.a., compounded fortnightly
Combined pension + loan capped at 150% of maximum pension
Up to 2 lump-sum advances per 26-fortnight period

Private reverse mortgage

15–20%

Typical borrowing limit as a share of home value at age 60

Available through private lenders
Loan secured against the home
Borrowing limit generally increases by ~1 percentage point for each year over age 60
Negative equity protection applies from 18 September 2012
Borrower cannot owe more than the home is worth
No comprehensive official national volume series published

What is the Home Equity Access Scheme and who is eligible?+

The Home Equity Access Scheme is a voluntary loan scheme for people of Age Pension age or older who own Australian real estate. It is secured against property and can be used by people who receive a qualifying pension, or by some people who do not receive a pension because of income or assets test settings. Combined pension and HEAS loan payments can reach up to 150% of the maximum pension rate. The interest rate is 3.95% per year, compounded fortnightly.

What is negative equity protection on a reverse mortgage?+

Negative equity protection applies to reverse mortgages taken out from 18 September 2012. It means the amount owed under the reverse mortgage cannot be more than the value of the home. ASIC's Moneysmart states that the borrower, or their estate, will not have to repay more than the proceeds from the eventual sale of the property.

How much can someone borrow through a reverse mortgage?+

ASIC's Moneysmart guidance states that a person aged 60 can typically borrow around 15 to 20% of the value of their home through a private reverse mortgage. As a rough guide, the limit increases by approximately one percentage point for each year over age 60. For example, the borrowing range for a 70-year-old may be around 25 to 30% of the home's value, depending on lender settings.

Section 10Downsizing trends

Downsizing trends and super contributions in Australia

Since the downsizer contribution scheme began in 2018–19, 98,500 individuals have contributed $25.255 billion to superannuation from home sale proceeds. That equals an average contribution of approximately $256,400 per person.

In 2024–25, 15,800 individuals made downsizer contributions, with total contributions of $4.165 billion. The average contribution was approximately $263,600 per person.

The scheme applies to people aged 55 and over and allows contributions of up to $300,000 per person, or $600,000 per couple, from the sale of an eligible home into superannuation outside the usual contribution caps.

Downsizer contribution data does not capture all downsizing activity. Not everyone who sells a larger home and moves to a smaller property makes a formal downsizer contribution to superannuation.

98,500

Individuals who have made downsizer contributions to superannuation since the scheme began in 2018–19.

$25.255b

Total downsizer contributions allocated to superannuation funds since 2018–19.

$263,600

Average downsizer contribution per person in 2024–25 (15,800 individuals contributing $4.165 billion).

Source: ATO, Downsizer super contributions data, released September 2025.

Eligibility rules for downsizer contributions

Eligibility rules require a person to be aged 55 or over, to have owned the property for at least 10 years, and to make the contribution within 90 days of settlement. The maximum contribution is $300,000 per person, or $600,000 per couple. Downsizer contributions are not tax-deductible, but they count toward the tax-free component of superannuation and do not count toward the usual concessional or non-concessional contribution caps.

General information only

This article is for general informational purposes only. All data is drawn from official Australian sources and is accurate for the dates specified. Housing costs, pension rates, superannuation rules and scheme settings can change over time. This article does not constitute financial advice. Readers seeking personal guidance on retirement income, equity release or mortgage management should refer to a qualified financial adviser, Services Australia, the ATO or ASIC's Moneysmart.