How would a reverse mortgage affect my age pension?

By George Cochrane
Updated June 6 2017 - 10:10am, first published May 20 2017 - 1:47am

I am 69 and am considering obtaining a reverse mortgage lump sum with a bank and would like to understand the impacts on the age pension tests. As this is effectively me taking on debt, how does Centrelink treat the money? My questions: 1. Is the lump sum considered an asset? 2. Is any interest earned on the lump sum considered as income? 3. If I give part of the lump sum as a present to my son is it considered a gift? 4. If a gift, how does Centrelink deem the gift? As income or assets, or both? I am not interested in the government reverse mortgage scheme. Mine would be privately arranged. F.F.

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