Heartland Reverse Mortgage’s variable interest rate is 5.95% per annum from 1 December 2020.
The interest rate is variable and will change from time to time. This could be due to what is happening in the economy both in New Zealand and overseas, as well as changes to our own borrowing costs.
Default interest rates
If you do not meet the terms and conditions of your loan you could be charged a default interest rate of up to 2% p.a. above the current interest rate.
Effective as of 8th May 2020
The variable interest rate for loans settled between 1 November 2005 and 31 December 2009 is 4.26% p.a. This has changed from 5.25% p.a.
The variable interest rate for loans settled between 1 January 2010 and 1 April 2014 is 5.26% p.a. This has changed from 6.25% p.a.
Fees and legal requirements
Fees do apply to your Heartland Reverse Mortgage, including when you set up your loan or set up further top-up loans (however, in most cases these fees can be added to your loan amount). For full information about our fees and when they are charged, see our fee schedule.
Independent legal and financial advice
To protect your own interests, you will be required to seek advice from your own legal adviser, who will provide you with the necessary independent legal advice you need before making any decisions. They will advise you about their fees, and you will be responsible for any costs that arise through your engagement with them in regards to your reverse mortgage application.
In order for us to keep our promises to you, you also have a number of legal obligations to us. This includes continuing to look after your home, making necessary repairs, and adequately protecting it from damage. You also must continue to pay your rates, and insure your property.
To help you monitor your loan, we send you a statement every six months, with details of your loan over the previous period, including interest.
Code of Banking Practice
The Code of Banking Practice sets out standards for good banking practice. We adhere to the Code (as a member of the New Zealand Bankers' Association) and see it as a minimum standard to maintain good relationships and communications with our customers.