Heartland Bank Reverse Mortgage

The maximum loan amount you may be eligible for is calculated by applying a Loan to Value Ratio (LVR), which is based on the age of the youngest person applying for the loan and increases by 1% for each year starting from age 60.

To work out the maximum loan amount applicable for your property:

• Find the age of the youngest borrower below and make note of the percentage next to this.
• Start with the value of your property and multiply this by the relevant percentage.

For example:
A 70 year old borrower has property with a value of $2,000,000.

The calculation is 2,000,000 X 30% = $600,000.

$600,000 is the maximum loan they may be eligible for and represents an LVR of 30%.

Click here to calculate how much I can borrow.

Standard Heartland Bank Reverse Mortgage*

*Subject to lending criteria, property location and change. If the security property is an investment property or holiday home, the maximum amount available is reduced by 10%.
**The minimum age for a Heartland Bank Standard Reverse Mortgage is 55. Where the borrower will be residing in Aged Care, the minimum age is 60.

The aged pension can affect everyone differently. You can access some of the equity in your family home usually without impacting Government entitlements. However, this will be dependent on your financial situation and assets. Heartland Bank recommends that you contact Centrelink to discuss your individual circumstances when applying for a reverse mortgage. 

Anyone aged 55 or over who owns their own home can apply for a Heartland Bank Reverse Mortgage.

Property criteria
Your property must be residential, of conventional construction and in good repair. It must also meet our minimum property criteria, including valuation, size and location.

The property should be mortgage-free, or if there is a mortgage outstanding, it must be repaid with your Heartland Bank Reverse Mortgage.

Yes, you will always own your home and continue to live in it as long as you wish, while benefiting from any capital growth. Only when you move permanently from your home (or in the case of joint applicants, when both of you have moved permanently from your home) will the loan be repayable.

Heartland Bank understands that some customers (who we call nominated borrowers) may not be the sole owners of the home they live in. In these circumstances Heartland Bank will need to be contacted to ensure the application can proceed. 

Funds can be used for almost anything that helps you live a more comfortable retirement.

Many people use the loan to fund home repairs or improvements, repay debt, travel to visit family, pay for medical procedures, upgrade to a more reliable car, assist with in-home care, or a host of other uses to make life easier and more comfortable. Fundamentally, a Heartland Bank Reverse Mortgage is designed to help you live a better retirement. 

Yes. At Heartland Bank we want you to make an informed decision, taking into consideration your future needs and objectives, as taking out a reverse mortgage may affect equity available later down the track. This includes considering aged care costs and how you intend to pay for them, along with your desire to leave an inheritance.

You should also consider any other options which may be available, such as downsizing, to ensure a reverse mortgage is right for you.

Heartland Bank assists you in doing this as part of our thorough application process. 

If you move into another house, you can apply to transfer your Heartland Bank Reverse Mortgage to your new home. If we agree to transfer the loan, fees will apply and will be added to your loan balance. 

If the loan is initially taken out over your investment property, you are able to rent out your home, subject to the lease meeting Heartland Bank’s requirements.

If you wish to lease out your owner-occupied home, please contact Heartland Bank to discuss your situation. This is not always possible and is based on your specific circumstances and loan conditions. 

When your cash reserve (if any) is fully drawn you can apply to increase your total loan amount. Increases are based on the age of the youngest person, the current property value and the total loan balance at the time of application.

Any increase is subject to approval. Fees may apply and a new valuation of your home may be required. This will be confirmed at the time of application. 

Yes. You can take out a Heartland Bank Investment Property Loan. This type of loan comes with all the benefits of a Heartland Bank Reverse Mortgage, but with the added flexibility of using your residential investment property or holiday home as the security.

Please note that under a Heartland Bank Investment Property Loan, the loan balance will become due and payable when the security property (in this case the investment property) is sold or the last nominated borrower no longer resides in their owner-occupied home (or primary residence). This could be due to moving house, moving into a retirement village, aged care or passing away. 

Yes, you can use a reverse mortgage to pay for aged care.

If a member of a couple is still residing in their home (security property), a Heartland Bank Reverse Mortgage can be used to pay for their partner’s entry into care.

Our Aged Care Option also allows for a higher LVR, with examples as follows:

Our Aged Care Guide provides more detail regarding Heartland's reverse mortgage for aged care finance offerings.