A reverse mortgage is a loan that has been designed for the needs of people over 60. It allows you to release cash from the value of your home to help fund retirement. No regular repayments are required – the debt is repaid from the future sale of the property.

Importantly, you continue to own and live in your home for as long as you wish, continuing to enjoy the benefits of your community, social network, and family memories.

Standard Reverse Mortgage

With a reverse mortgage, you don't need to make regular repayments. Interest is calculated on the outstanding balance and added monthly to your loan. Voluntary repayments can be made at any time, which reduces the balance and interest charged.

The total loan amount, including accumulated interest, is repayable when you move permanently from your home. This could occur when you sell your property, move into long-term care or pass away.

To be eligible, you need to be over the age of 60, own your own home outright, or have a standard mortgage that can be paid off by the reverse mortgage. The amount you can access depends on your age and the value of your home.

Learn more in our Reverse Mortgage Fact Sheet

Secondary Property Loan

You can also take a reverse mortgage against a secondary property such as an investment property or holiday home. A Secondary Property Loan provides you the same benefits of a reverse mortgage on your primary home.

Specific lending criteria apply for Secondary Property Loans.

1. Get in touch
   A specialist will explain what a reverse mortgage is and take you through the application process. There’s no commitment, you can change your mind at any time.
2. Application
   To be eligible, you’ll need to meet certain criteria, including your age, and the location, construction and value of your property.
3. Approval
   We’ll review the valuation and your application. Provided they meet our criteria, we’ll make you a loan offer.
4. Settlement
   We’ll send your loan documents to your solicitor who must provide you with independent legal advice. If you proceed, the documents can be signed and returned for settlement.

Your home must be your principal residence, or your secondary property, built using conventional construction and in good repair. It must also meet our minimum property value criteria. Some locations and property types will have restrictions and, in some cases, may not qualify for a Heartland Reverse Mortgage.

The property should be mortgage free. If there is a small mortgage outstanding it must be repaid when the Heartland Reverse Mortgage begins - this can be done by using part of your loan.

As security for your loan, Heartland Bank must be the first and only mortgage on your property. This means you will be unable to take out another mortgage or charge on your home from a different company.

We have recently increased the size of the lifestyle blocks that we will consider lending on, and we will look at others outside of our criteria by exception. We would encourage you to contact our team for a discussion.

Heartland encourages you to only borrow what you need. We provide three flexible options to help you access the equity in your home when required, which can be used in combination.

When you set up your Heartland Reverse Mortgage, simply tell us how much you would like to access initially, and then how much you may need to borrow in the future. We can make funds available to you now, and you can establish a cash reserve facility or monthly payment to manage your future requirements.

Our cash reserve facility is designed to make it quick and easy to draw further funds, as and when you require them.

You can also complement your retirement income with a monthly advance. This can be taken for up to 10 years, is paid monthly, and helps many of our customers live a more comfortable retirement.

The following table shows the maximum percentage of your home’s value you can borrow at various ages. The percentage is based on the age of the youngest borrower minus 40, and the ages below are shown as examples.

Once you have a Heartland Reverse Mortgage you are not able to rent out your home full time, or provide a tenant with a long term lease. Your home should remain your place of residence.

If you have a Secondary Property Loan you are able to rent out your property.

To allow us to establish the value of your home, and therefore calculate how much you will be entitled to borrow, we will need to assess the value of your home. All applications will initially be assessed using an online valuation (i-val) which costs $17.41. Some applications may require a full market valuation (FMV), when certain criteria are met according to our valuations policy. In that case we will arrange for a registered valuer to visit your home to assess its value. You will need to pay for the cost of a FMV, which will depend on the location and value of your property. If an FMV is required, the i-val fee will not be charged. A copy of the i-val and the FMV report will be provided to you.

With a Heartland Reverse Mortgage you do not need to make regular repayments. The total loan amount, interest and fees charged is repayable when you move permanently from your home. Usually this is when you sell your property, move into long-term care, or pass away. The loan is usually repaid from the sale proceeds of your home, and the balance is then retained by you or your estate.

Although the Heartland Reverse Mortgage is designed to last for as long as you choose to stay in your home, you may repay all or part of your Heartland Reverse Mortgage at any time without penalty, providing you with the flexibility to manage your finances in the way that suits you best.

If you have a cash reserve facility, and it is fully drawn you can apply to increase your total loan amount. Increases are based on the age of the youngest borrower, the current property value and the total loan balance, at the time of request. Fees will apply and a new valuation of your home may be required. This will be confirmed at the time of request.

Some applicants (called nominated residents) may not be the sole owners of the home they live in. For example, the home might be in a family trust, or in the case of a couple, owned by only one person.

As long as the nominated residents of the home meet the age criteria, and all residents are recorded on the loan, you can still apply for a Heartland Reverse Mortgage providing all the owners agree to sign the application form and legal documents. Terms and conditions apply.

If you move into another house, you will repay your current reverse mortgage and you can re-apply on your new home. Fees will apply and your new home must meet our current lending and property criteria, including valuation, size and location. Please contact us for assistance.

At Heartland, we are proud to offer our customers a high level of customer service, and your satisfaction is very important to us. If you would like to make a complaint or offer a compliment, we encourage you to contact us here.