Reverse mortgages
The golden years are looking bright.
A reverse mortgage gives you the opportunity to live life on your terms. Enjoy the financial flexibility, independence and a lifestyle you love.
What is a reverse mortgage?
A reverse mortgage is like a normal home loan that has been designed for the needs of seniors. It allows people aged 60 and over to release home equity to live a more comfortable retirement. Importantly, you continue to own and live in your home.
What are some of the benefits?
Maintain ownership of your home
You remain the registered owner of the property, and you can continue to enjoy living in your own home for as long as you want.
Flexible finances
The funds from your home can be used for almost anything you like to make your lifestyle more enjoyable, or for unexpected expenses.
No regular payments required
There is no need for regular loan repayments. Interest is calculated on the balance outstanding and added to your loan.
Designed to last as long as you need
Importantly, you continue to own and live in your home for as long as you wish, continuing to enjoy the benefits of your community.
What can I do with my loan?
You can use your reverse mortgage for almost any purpose that may make life easier, more comfortable, or more enjoyable in retirement. Below are some examples of what our customers have used their reverse mortgages for.
A Heartland reverse mortgage could provide a regular income stream supplement. Paid monthly for up to 10 years, this could help you gain freedom from stress and comfortably cover all the necessities, while also enjoying more of the opportunities retirement affords.
It could help you plan deserved getaways, without feeling restrained by budget. Create memories, tick off those dream destinations from your bucket list or visit loved ones overseas.
A Heartland reverse mortgage could allow you to continue to live in the place you call home, while making improvements that could not only add value, but ensure your comfort, safety and enjoyment for the years ahead.
With an interest rate that is often lower than credit cards or personal loans, a Heartland reverse mortgage could allow you to access equity in your home to pay off higher-interest debt and give yourself the freedom and confidence to make plans for the future, so you can enjoy more of what life has to offer.
I would like to apply, what should I do next?
Talk to our team
To find out if a Heartland Reverse Mortgage is right for you, one of our specialists can talk you through the process to make sure you can make an informed decision. From there, we take you through the application process while explaining what could work best for you. There’s no commitment, and you can change your mind at any time.
Property valuation
The amount you can borrow does depend on the value of your home. After you’ve completed your application, we’ll request a valuation to be undertaken on your property to determine its current value, condition,and how much you will be eligible for.
Your approval
Once your valuation is completed, we will review this report and your application. Provided this meets our criteria we will make you a loan offer. Eligibility includes your age, what you require from the loan, and that your property meets Heartland’s guidelines.
Settlement
Heartland will then send your loan documents to your solicitor, who will need to provide you with the necessary independent legal advice. You will sign the loan documents with your solicitor and the documents will be returned for settlement the next business day after all requirements are met.
What are other people saying about our reverse mortgages?
Over 15,000 Kiwis aged 60+ have used the value of their home to access cash for a well-earned and comfortable lifestyle. See how a reverse mortgage is working for them.
Your questions, answered
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.
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.
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 will then make funds available to you now, and can establish an Express Top Up facility or monthly payment to manage your future requirements.
Our Express Top Up 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 45, and the ages below are shown as examples.
| Age of youngest borrower | Maximum % of home's value available* |
|---|---|
| 60 | 15% |
| 65 | 20% |
| 70 | 25% |
| 75 | 30% |
| 80 | 35% |
| 85 | 40% |
Would you like to know more?
If you’d like more information, or would like to talk through the application process, our New Zealand based team are available to answer any questions you have about reverse mortgages, and how you can get started.
call free: 0800 488 740