Heartland Seniors Finance
A reverse mortgage is useful for seniors looking to utilise the equity in their property to help with the expenses that come with advancing age.
Heartland Seniors Finance is one of Australia’s leading reverse mortgages lenders. A reverse mortgage enables seniors to access the equity in their property to help them live comfortably in retirement without having to sell their home.
You can read our guide to learn more about reverse mortgages and how they work.
Reverse mortgage products from Heartland Seniors Finance
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Heartland Seniors Finance offers three different reverse mortgages
Standard Reverse Mortgage
This is the lender's basic reverse mortgage. Borrowers over 60 should look at this loan if they wish to access equity in their property for retirement. This loan will be suitable for most reverse mortgage customers, unless you want to use the equity from an investment property or you're trying to cover your aged care costs.
Heartland Seniors Finance Secondary Property Reverse Mortgage
This is a reverse mortgage option for borrowers over 60 who wish to unlock equity in their second property, whether that's a holiday home or an investment property.
Heartland Seniors Finance Aged Care Option
Aged care can be expensive. Using an Aged Care Option allows you to take equity from your home to cover the costs of your aged care.
What to consider before taking out a Heartland Seniors Finance reverse mortgage
Due to the unique nature of a reverse mortgage, there are a lot features and aspects that you should consider before you decide to go ahead with it.
- Customer lending criteria. You must be aged 60 years or over. A maximum of two customers are allowed to apply for the same loan. A power of attorney can apply for a reverse mortgage, subject to the lender’s approval.
- Property lending criteria. The property must be mortgage-free, residential, of conventional construction and in good condition. It cannot be a property within a retirement village. There can be a mortgage on the property if you intend to use the reverse mortgage to pay off this original home loan. The property must be valued at at least $200,000, depending on the location.
- Loan term. This loan can be taken out for a period of 5-10 years. If you opt for the Aged Care option you are restricted to a loan term of 5 years only.
- Payment options. You can draw the total amount of your property, or just a partial amount, however, what you draw will affect the equity of the property in the years to come. You are not required to draw all the funds upon taking out the loan. A minimum amount of $10,000 must be initially drawn and then you can opt for either regular payments of $2,500 per year (with quarterly or annual options) or $500 per month. The other option is to have the funds held in a cash reserve that you can apply to access at any time, but may you may not always be approved. Alternatively, you can mix and match how you access your funds.
- Loan repayments. Loan repayments are not mandatory as long as you are not in default and you have not opted for the Aged Care option. The only time you will be asked to repay the loan is when the final named applicant passes away, moves into a permanent long-term care facility or the property is sold.
- Equity protection. You can choose to protect a percentage of the net proceeds from the sale of the property. This allows you to retain complete ownership of that percentage of the property no matter the loan amount upon the discharge of the loan. However, this will reduce the loan amount available by the percentage that you choose to protect, either 10%, 20% or 50%.
Fees to consider
- Settlement fee: $495. This is a standard fee charged for the creation of your loan accounts with the lender.
- Valuation fee: $350. This fee is charged if the property is valued at less than $2 million. It will be waived if the loan proceeds to settlement. If the property is valued at above $2 million, you will be quoted a valuation fee.
- Cash reserve drawdown fee: $60 per drawdown. This fee is charged every time you are approved to draw upon the funds you have put into a cash reserve.
- Regular cash advance option fee: $295. This is charged when you opt to take a cash advance on your loan amount.
- Mortgage discharge fee: $395. This is charged upon the closure of your loan accounts.
- Variation fee: $295. This is charged if, after approval, you ask to have your loan structure changed.
- Reissue of loan documentation fee: $295. This is charged if you request for your loan documentation be sent to you again (after it has initially been issued to you).
- Equity protection option fee: $295. This is charged if you opt to utilise the equity protection option.
Need more help? Chat to a mortgage broker
A mortgage broker is a licensed professional who can help you get a mortgage for your situation. They specialise in helping borrowers in unique or challenging situations.
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