- Who can apply?
- What types of property are eligible?
- How much can you borrow?
- Will I still own my home?
- Can I rent out my home?
- How do you value my home?
- How and when is my loan repaid?
- Can I increase my loan amount?
- Do I need to be the property owner?
- What if I move house?
- What if I want to make a compliment or complaint?
Who can apply?
Anyone aged 60 or over who owns their own home can apply for a Heartland Reverse Mortgage. Your home must be your principal residence and the amount you can borrow depends on a number of factors, such as your age and the value of your home. Fees and lending criteria apply.
What types of property are eligible?
Your home must be your principal residence, built using conventional construction. It must also meet our minimum property value criteria.
The property should be mortgage free, or if there is a small mortgage outstanding, it must be repaid when the Heartland Reverse Mortgage begins. This can be done by using part of your loan.
As security for your loan, Heartland Bank must be the first and only mortgage on your property. This means you will be unable to take out another mortgage or charge on your home from a different company.
How much can you borrow?
Only you know how much money you may need at any given time. We want to make sure you are comfortable with whatever arrangements you make.
You do not have to take your whole entitlement immediately. When you set up your Heartland Reverse Mortgage, simply tell us how much you would like to draw down initially, and then how much you may need to borrow in the future. We will then give you the funds you need now, and establish an Express Top Up facility to manage your future requirements. Our Express Top Up facility is designed to make it quick and easy to draw further funds, as and when you require them.
The following table shows the maximum percentage of your home’s value you can borrow at various ages. The percentage is based on the age of the youngest borrower minus 45, and the ages below are shown as examples.
Will I still own my home?
Yes, you will always own your home and continue to live in it just as you do now. 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 repaid, usually from the proceeds of the sale of your home, leaving the balance to you or your beneficiaries. You can stay in your home as long as you wish and continue to benefit from any capital growth of your home.
Can I rent out my home?
Once you have a Heartland Reverse Mortgage you are not able to rent out your home full time, or provide a tenant with a long term lease. Your home should remain your place of residence.
How do you value my home?
To allow us to establish the value of your home, and therefore calculate how much you will be entitled to borrow, we will need to assess the value and condition of your home. We will arrange for a registered valuer to visit your home to assess its value, and a copy of this assessment will be provided to you. You will need to pay for the cost of this valuation, which will depend on the location and value of your property. Contact us for further details of this valuation cost.
|Age of youngest borrower||Maximum % of home's value available|
How and when is my loan repaid?
With a Heartland Reverse Mortgage you do not need to make regular repayments. The value of your Heartland Reverse Mortgage, plus interest, is only due to be repaid when you move permanently from your home - usually when you sell your property, move into long-term care or pass away. The loan is usually repaid from the sale proceeds of your home, and the balance is then retained by you or your estate.
Although the Heartland Reverse Mortgage is designed to last for as long as you are able to remain in your home, you may repay all or part of your Heartland Reverse Mortgage at any time without penalty, providing you with flexibility to manage your finances in the way that suits you best.
Can I increase my loan amount?
When your Express Top Up facility 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. A Further Advance Fee will apply and a review of the value of your home may be required.
Do I need to be the property owner?
Some applicants (called Nominated Residents) may not be the sole owners of the home they live in. For example, the home might be in a family trust, or in the case of a couple, owned by only one person.
As long as the Nominated Residents of the home meet the age criteria, and all residents are recorded on the loan, you can still apply for a Heartland Reverse Mortgage providing all the owners agree to sign the application form and legal documents.
What if I move house?
If you move into another house, you can apply to transfer your Heartland Reverse Mortgage to your new home. If we agree to this transfer, fees will apply and be added to your loan balance.
What if I want to make a compliment or complaint?
At Heartland, we are proud to offer our customers a high level of customer service, and your satisfaction is very important to us. If you would like to make a complaint or offer a compliment, we encourage you to contact us here.