Picture “perfect” — A reverse mortgage customer story
With nearly 900,000 New Zealanders currently aged 65 and over – and projections showing this number will surpass 1 million by 2029 – our ageing population is growing rapidly. By the early 2050s, it’s expected to reach 1.5 million, and close to 2 million by 2070, according to Stats NZ.
Heartland Bank is pleased to have helped over 26,600 older New Zealanders remain in their home as they retire, by unlocking some of their equity with a Heartland Bank Reverse Mortgage
Delwyn and Dave have shared their story of how a Heartland Bank Reverse Mortgage enabled them to unlock financial freedom in their retirement. You can read their story below.
Picture “perfect”
Delwyn and Dave, aged 75 and 76 respectively, live in what they call their “perfect” home in New Plymouth. The couple purchased the 11-acre property in 2006, which includes 8 acres of protected native bush. They agreed their focus would be to pay off their mortgage and cover the necessary capital expenses to establish the property.
Both teachers, Delwyn has recently retired while Dave continues working part-time. Deciding when and how to retire together was stressful —although they have no debt, they need to preserve their savings for a rainy day.
The pair considered their options including downsizing and moving into the city centre or subdividing their current property. They looked at multiple alternative houses – 14 in one day! – but none were what they were looking for. Moving to town meant rates and heating would be more expensive, while investigating subdivision options was very costly with no guaranteed outcome.
Delwyn and Dave decided to discuss a way forward with their close friend and trusted advisor who is an accomplished businessman with deep knowledge of finance and banking. Ultimately, the couple did not want to leave their home – the native bush, flat section, cosy fireplace and sea views being just some of the elements they did not want to walk away from. These, coupled with the wonderful neighbourhood meant the best solution would enable them to stay in their home. Their friend encouraged them to explore all options, including a Heartland Bank Reverse Mortgage, which Delwyn admits was initially “bottom of their list.”
Delwyn decided to call Heartland Bank where she was put in contact with one of our New Business Consultants within the Reverse Mortgage team. From the beginning she felt confident in her communication and says she never once felt pressure to proceed but rather had the product and process clearly explained and was advised of the requirement to seek independent legal advice. This gave her confidence and an excellent understanding of how a reverse mortgage could benefit their situation which enabled her to discuss the prospect with Dave and in turn, their family – who were all supportive.
“We have known for some time that we would need to make a decision about where we would live for the next few years. Our life here is perfect for us and we dreaded moving away. Since arranging our reverse mortgage with Heartland Bank, we are relieved and at peace knowing that we can stay.
“As soon as the decision was made to follow through with a Heartland Reverse Mortgage, we felt settled knowing that we could stay in a peaceful place we love and still have the freedom to enjoy doing the things that we had planned.”
Delwyn believes the process was made easier because she and Dave had a clear understanding of what they wanted to achieve – staying in their home and having the funds to maintain it; doing a road trip through the South Island; travelling to Australia to see the Warriors play; while ensuring their rainy-day savings could be left untouched. Thanks to a Heartland Bank Reverse Mortgage Delwyn and Dave are now able to do all of this with peace of mind.
“This decision to take a reverse mortgage has taken the pressure right off us and it is a great feeling to know we can now do the things we really want to do.”
For more information on Heartland Bank’s Reverse Mortgages, visit https://www.heartland.co.nz/reverse-mortgage or contact us at [email protected] or 0800 488 740.
Heartland Bank Limited’s responsible lending criteria, fees and charges apply. This opinion piece is not financial advice and every person’s situation is different. We encourage you to get financial advice tailored to your circumstances, as well as legal advice, if you are considering a reverse mortgage.
