What is a reverse mortgage?

A reverse mortgage is like a normal home loan that has been designed for the needs of people over 60. It allows you to release equity from your home to live a more comfortable retirement. Importantly, with a reverse mortgage you continue to own and live in your home and community for as long as you choose.

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Heartland Bank Reverse Mortgage

How does it work?

Unlike a standard home loan, 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.

Reverse Mortgage - Streamline Application

If you’re looking to release less than $100,000 equity from your home our Reverse Mortgage - Streamline Application may be right for you. It has all the protections of our regular Reverse Mortgage with a few added benefits including:

  • no registered valuation requirement
  • lower upfront costs
  • faster settlements.

Specific lending criteria apply for Secondary Property Loans and Reverse Mortgage - Streamline Application.

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 applies.

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How am I protected?

We take our duty of care seriously and have a range of safeguards in place to ensure you make an informed decision and are well protected*.

Lifetime occupancy

Lifetime occupancy promise

You continue to own and live in your home for as long as you choose.

No negative equity

No negative equity guarantee

The amount required to repay the loan will never exceed the net sale proceeds of the property.

Loan repayment guarantee

Loan repayment promise

You do not need to make any loan repayments until the end of the loan. Although you can choose to make repayments at any time with no penalty.

Equity protection

Equity protection option

You can choose to protect a percentage of the eventual net sale proceeds of your home. When your loan is repaid, you’re guaranteed to have this chosen percentage returned to you (up to 50%).

30 days cooling off period

30-day cooling off period

It’s important you feel comfortable with your decision. If you change your mind within 30 days, simply repay your loan (including interest and valuation fee), and we’ll refund the application fee in full.

Independant legal advice

Independent legal advice

It is important that you are completely happy with all aspects of your Heartland Reverse Mortgage. To ensure this, the legal advice on your loan agreement must be carried out by a solicitor of your choice, who will represent your interests and work with you to explain and discuss your loan.

*Subject to complying with the terms and conditions of the Heartland Reverse Mortgage, you will not owe more than the net sale proceeds of your home and you can keep your home for as long as you choose.

What is the interest rate and fees?

In addition to the interest on your loan, there will be fees and charges for setting up the loan, which are dependent on what options you select. These can be paid out of your loan at settlement.

It is a requirement that you seek and receive independent legal advice on the loan agreement issued by Heartland from a solicitor of your choice. The cost for this could also be paid out of your loan.

There are no ongoing servicing fees

What do Kiwis think about reverse mortgages?

Your reverse mortgage journey

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Let’s chat

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.

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Property valuation

After you’ve completed your application, we’ll request a valuation of your property, unless it meets our Reverse Mortgage - Streamline Application criteria. This will help us determine how much you can borrow.

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We’ll review the valuation and your application. Provided they meet our criteria, we’ll make you a loan offer.

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We will 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.

Prefer to talk to someone first?

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

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