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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 for as long as you wish, continuing to enjoy the benefits of your community, social network, and family memories.

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Heartland Bank Reverse Mortgage

How does it work?

Unlike a standard mortgage, you don’t need to make regular repayments. Instead, interest is calculated on the balance outstanding, 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 aged 60 or over, 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.

Secondary Property Loan

Heartland offers a Secondary Property Loan which allows you to take a reverse mortgage against a secondary property, such as an investment property or holiday home.

A Secondary Property Loan can help you to live a more comfortable retirement, while continuing to benefit from the protection a Heartland Reverse Mortgage provides.

Specific lending criteria apply for a Secondary Property Loan.

What can I do with my loan?

A Heartland Reverse Mortgage is designed to give you access to the finances you need to make life easier, more comfortable and enjoyable in retirement. You may choose to use your reverse mortgage for:

  • Home Improvements
  • Day to day expenses
  • Travel and Holidays
  • Medical and Healthcare
  • Car purchase
  • Debt consolidation

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How am I protected?

Heartland understands that each and every customer places their trust in us when we provide them with finance, and we take this duty of care seriously. Heartland has put safeguards in place to ensure you make an informed decision and are well protected*. These include:

Lifetime Occupancy promise

Your home will remain the place you live in 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

There is no requirement to make any loan repayment until the end of the loan.

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, so if you change your mind within 30 days, you 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.

*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 about the costs?

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. You can find out more about our fees and mortgage rates on the resources page.

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.

Ready to apply?

Heartland Bank Reverse Mortgage Team

We are proud to be Kiwi locals and have a strong heritage in helping New Zealand’s aged 60+ live a more comfortable retirement. As New Zealand’s largest reverse mortgage provider, we put our customers first and go that extra mile to provide you advice and guidance through each step of the process.
Meet the team

Reverse Mortgages – what are your thoughts?

Get started online now

Are you ready to apply? We’ve put together a few simple questions that will help us know whether a reverse mortgage is going to be right for you. Once you’ve submitted your answers, a specialist will get in touch with you directly.


Tell us a bit about yourself.


Let us know the number of people you are applying for.


Tell us the amount you require and what you’d like to use your loan for.

Start your application

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

Get your free reverse mortgage insights guide

Fill in your details and we will send you a straightforward, information-rich guide to reverse mortgages.

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How much can I borrow?

Use our Reverse Mortgage Calculator to work out how much you could be eligible to borrow.

Minimum age is 60 years
Minimum property value is $250,000

*This calculation does not constitute an approval but provides an indicator of how much you could possibly borrow. Applications for a Reverse Mortgage are subject to our normal lending criteria, which includes a valuation. Full terms and conditions will be included in any loan offer.

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Let’s get started. Answer these simple questions then we’ll get in touch with you directly.

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If the information you need isn’t covered here, get in touch and we’ll be happy to answer any questions you have.

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