Unlock the equity in your home to finance your retirement.
If you're over the age of 60, a reverse mortgage from Heartland Seniors Finance could help you fund your retirement by using the equity in your family home.
A note on fees
While this loan has no application fee, there is a settlement fee. And if your application is not succesful you will be charged a valuation fee.
| Product Name | Heartland Seniors Finance Standard Reverse Mortgage |
|---|---|
| Interest Rate Type | Variable |
| Interest Rate (p.a.) | 5.80% |
| Comp Rate^ (p.a.) | 5.82% |
| Minimum Loan Amount | $5,000 |
| Minimum Loan Term | 1 year |
| Maximum LVR | 45% |
| Maximum Insured LVR | 45% |
| Loan Redraw Facility | Yes |
| Fixed Interest Option | No |
| Loan Portable | Yes |
| Suitable for Investment | No |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | Yes |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $0 |
|---|---|
| Valuation Fee | $350 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $495 |
| Discharge Fee | $395 |
Pros
- Lump sum option
- No application or ongoing fees
Cons
- Settlement fee of $495
- Discharge fee of $395
What do I need to know about this loan?
A reverse mortgage works by offering you funds based on the equity you've built up in your home. This product offers you either a line of credit or a set regular income.
Unlike traditional mortgage products, you won't have to make regular repayments. Instead, interest is calculated and added to the original loan amount, then the total amount is due when the last customer permanently moves from their home. This could be due to passing away, moving into aged care or selling the home and downsizing.
Before taking out a reverse mortgage, it's important to seek independent financial advice on your retirement objectives and needs.
How do reverse mortgages work?
What are the features and benefits of the Heartland Seniors Finance Standard Reverse Mortgage?
- Loan amount and loan to value ratio. The Heartland Seniors Finance Standard Reverse Mortgage carries a minimum borrowing amount of $5,000 There is no maximum borrowing amount. The maximum loan to value ratio is 45% of the equity in your home.
- Eligibility. You must be at least 60 years of age to qualify for a reverse mortgage through Heartland Senior Finance.
- Repayment flexibility. While a reverse mortgage does not require you to make regular repayments, the Heartland Seniors Finance Standard Reverse Mortgage allows unlimited optional repayments.
- Payment type. You can choose to receive your payments as either a line of credit to access as you need it or a regular fixed income.
What fees and charges come with this loan?
- Valuation fee: $350. This fee is waived for properties valued under $2 million.
- Settlement fee: $495. This one-time fee covers the administrative costs associated with funding your home loan.
- Discharge fee: $395. This fee is charged when the loan account is closed after you've repaid your reverse mortgage.
How do I apply for this loan?
If you've done the research, compared reverse mortgages and think the Heartland Seniors Finance Standard Reverse Mortgage is the right product for you, click the green button above. You'll be directed to the Heartland Seniors Finance website, where you'll be guided through your application.
