News

Heartland Bank, New Zealand’s leading provider of reverse mortgages, is experiencing an increase in demand as retirees seek alternative ways to meet their financial needs. Heartland Bank has reported a 15%* rise in Reverse Mortgage lending over the six months to 31 December 2025 – a clear signal that older New Zealanders are embracing this flexible finance solution to supplement their income and unlock the value tied up in their homes.

Will White, General Manager Retail & Reverse Mortgages, says: “In 2025, Heartland Bank Reverse Mortgage customers used their loan for home renovations, debt consolidation, healthcare, car upgrades and travel. Many borrowers allocate funds to several uses, reflecting the varied financial needs in retirement.”

The demand increase comes as Heartland Bank strengthens its commitment to retirement finance solutions and awareness, appointing respected broadcaster Judy Bailey as its brand ambassador. With over 26,000 New Zealanders already using Heartland Bank’s Reverse Mortgage and research showing superannuation often falls short, Heartland Bank’s growth reflects a broader national conversation about living well in retirement as cost of living pressures can outstrip income.

Massey University research shows that average weekly expenses for a two-person household far exceed the fortnightly NZ Super payment for a couple of $1,656.68 after tax, whether living in a metropolitan or provincial area. To bridge the gap, retirees must supplement their income with savings or other sources.

Judy Bailey says: “Retirement can be a tricky time for a lot of people. My generation was always told work hard, save hard to own your own home, if you’re lucky enough to have some savings, all to the good – but superannuation will have your back.

“Today, that’s so often not the case. So many people are asset rich and cash poor. Retirement can be expensive, costs come out of left field,” she says.

On her decision to partner with Heartland Bank, Judy says: “I recently finished writing a book about ageing. While researching a chapter on financial matters, I gained a whole new understanding of Reverse Mortgages. So, when the team at Heartland Bank asked me to help promote their Reverse Mortgage product, it was an easy yes. Anything that enables people to live life to the full in their retirement is a win.

As part of her decision-making process, Judy met with team members and observed customer interactions.

“It has been a delight to travel the country and chat with customers who say this product has genuinely changed their lives, giving them peace of mind, freedom and dignity. They told me how much they value that human connection they get at Heartland Bank. Talking to someone who takes time to listen and genuinely understand their circumstances is priceless,” says Judy Bailey.

“A thoughtfully designed reverse mortgage can change lives.”

Heartland Bank’s Reverse Mortgage includes a comprehensive application process and several safeguards to protect customers, including a no negative equity guarantee, 30-day cooling-off period, a lifetime occupancy promise, and no required repayments until the loan ends (with optional penalty-free repayments). Customers can protect a portion of their home’s value with equity protection, and independent legal advice is mandatory to ensure full understanding of the agreement.

For further information and insights on Heartland Bank’s Reverse Mortgage product, refer to the attached Reverse Mortgage Factsheet, and visit www.heartland.co.nz/reverse-mortgage.

Responsible lending criteria, fees and charges apply.

*Annualised growth for the six month period ended 31 December 2025.