What is a reverse mortgage?
A reverse mortgage allows people over 60 to access some of the equity in their home, helping them fund 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.
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.
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 required
- lower upfront costs
- faster settlements.
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 promise
You continue to own and live in your home for as long as you choose.
No negative equity guarantee
The amount required to repay the loan will never exceed the net sale proceeds of the property.
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 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-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.
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.
You remain the registered owner of the property. You can continue to stay in your home and enjoy the benefits of your community for as long as you want.
No regular payments required
There is no need for regular loan repayments. Interest is calculated on the balance outstanding and added to your loan.
No negative equity guarantee
The amount required to repay your loan will never exceed the net sale proceeds of your property.
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.
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.
We’ll review the valuation and your application. Provided they meet our criteria, we’ll make you a loan offer.
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.