Customer FAQs
Understanding reverse mortgages
What is a reverse mortgage?
A reverse mortgage is a home loan that allows you to access some of the equity in your home without needing to make regular repayments. The Reverse Mortgage is a loan on your property which you are able to use to fund your retirement needs. The loan is typically repaid when you move permanently from your home, sell the property, or pass away.
How much can I borrow?
The maximum loan amount you may be eligible for is based on the value of your property and the percentage you can borrow based on your age. This is called a Loan to Value Ratio (LVR), calculated using the age of the youngest borrower. The older you are, the higher the percentage you may be able to access.
Example:
For a 70-year-old borrower with a home valued at $2,000,000, the calculation is $2,000,000 x 30% = $600,000. The maximum they may be eligible for represents an LVR of 30%.
Try our calculator or use the table below to find out how much you could borrow.
| Age of youngest borrower |
Maximum % of home's value available |
| 55** | 15% |
| 60 | 20% |
| 65 | 25% |
| 70 | 30% |
| 75 | 35% |
| 80 | 40% |
| 85 | 45% |
| 90 | 50% |
*Subject to lending criteria, property location and change.
**The minimum age for a Heartland Bank Equity Access Loan (Reverse Mortgage) is 55. Where the borrower will be residing in aged care, the minimum age is 60.
How much will I get when my loan settles?
The establishment and any other fees associated with setting up your reverse mortgage will come out of the amount you've requested. We suggest factoring in $1,500-$2,000 to cover these costs and make sure you receive the full amount at settlement. If the fees are less, you can make a repayment afterwards so you're not paying interest on any amount you don't require.
Will I still own my home?
Yes. You remain the owner of your home and can live in it for as long as you choose, provided you meet the terms of your loan.
How and when is my loan repaid?
You do not need to make any repayments. The loan is repaid when you sell your home, move into long-term care, or pass away. The loan is typically repaid from the sale of your home. You may however choose to make payments.
Will I owe more than my home is worth?
No. A no negative equity guarantee means you will never owe more than the net sale proceeds of your home.
What can I do with my money?
You can use the funds in a way that suits your needs - such as home improvements, covering expenses, supporting family, or funding lifestyle choices.
Can a reverse mortgage affect my pension?
A reverse mortgage may affect your pension or other Government entitlements depending on your financial situation. We recommend speaking with Centrelink.
Is a reverse mortgage safe?
Reverse mortgages in Australia are regulated and include important protections such as the no negative equity guarantee. We also require independent legal advice to help ensure you fully understand the loan.
Your Home. Your Security →
Your Home. Your Security →
Applying for a loan
Who can apply, and what criteria does my home need to meet?
Anyone aged 55 or over who owns their own home (even if it has an existing mortgage) may be eligible. The property must meet criteria such as condition, location, and valuation.
How do you value my home?
We arrange for a registered valuer to assess your property's value and condition. We use the same valuers that would do if for any normal home loan. A copy of the valuation will be shared with you.
What happens after I apply?
Once you apply, we will assess your application, arrange a property valuation, and provide you with an indicative outcome, explaining the product and features you are applying for. If approved, you will receive loan documents, obtain independent legal advice, and proceed to settlement.
How long does it take to get approved?
We are able to work to your timeline, we can ensure we meet most deadlines and your needs. Timeframes vary depending on your circumstances, valuation, and documentation. We will keep you informed throughout the process.
What can affect how long my application takes?
Delays can occur due to incomplete information or documentation. As we require a valuation, organising a valuer to attend your property at your availability may impact the application timeframe, or additional checks required. We will let you know if anything is needed to progress your application and you are able to check the progress anytime on your internet banking or mobile application.
Understanding future impact
How much will I have to repay?
The amount depends on how much you borrow, the interest rate, and how long you keep the loan. We will provide estimates during the application process, however the final amount payable is not known until the loan ends.
How will the loan affect my future choices?
Borrowing earlier or taking larger amounts may reduce the equity available later for future needs such as aged care or medical expenses.
How will my loan balance grow over time?
Interest accrues and is added to the balance monthly, meaning your loan will increase over time (this is referred to as 'capitalising interest'). The longer you hold the loan, the more interest you will need to pay.
Can I see an example of what my loan might look like in the future?
Yes. We provide a personalised projection showing how your loan and remaining equity may change during the application process. This projection is tailored to your individual situation so that you can understand how your loan will change over time.
How much equity could I have left in the future?
This depends on factors such as how much you borrow, how long you have the loan, interest rates, and property value changes. Your personalised projection will provide you with this detail. You are also covered by the no negative equity guarantee.
How does interest calculate on my loan?
Interest is calculated daily and added monthly. This is known as 'compound interest'. This means that interest is charged on both the original loan amount and the interest that has already been added to it.
Accessing and using your money
Can I increase my loan amount?
Yes. You can apply for an increase via internet banking or mobile app, which will be assessed based on your circumstances, property value, and lending criteria.
Do I have access to redraw?
Yes, if available, redraw funds will be shown in your internet banking, mobile app or on your statement and can be requested through your internet banking or the mobile app.
How long does it take to receive funds after I request them?
Once approved, funds are usually processed promptly. Timing may vary depending on the request type.
How will I know my request has been processed?
You will receive confirmation once your request has been approved and processed. We will also keep you informed as necessary throughout the application process.
Why might a request be declined?
Requests are subject to lending criteria. Your loan balance, property value, and available equity may affect approval.
How quickly can I access additional funds?
Access depends on your loan structure and approval requirements. Our team can guide you based on your situation.
What affects whether I can increase my loan later?
Factors that influence your ability to increase your loan include your age, loan balance, property value, and lending criteria at the time of the new application.
Managing your loan
How do I check my loan balance?
You can check your balance through the mobile app or internet banking, or your statement.
Am I required to make loan repayments?
No. However, you can choose to make voluntary repayments at any time. Any repayments will be available in redraw. You are not charged interest on any amounts that you have repaid.
How can I make voluntary repayments?
Repayments can be made via internet banking or direct transfer. Please include your loan number so we can correctly apply the payment.
When do I receive statements?
Statements are issued at least every six months, in January and July.
What is the annual questionnaire?
The Annual Questionnaire is a yearly check-in that helps us make sure your loan is still working as expected and that your circumstances haven't changed. This includes confirming you are living in and maintaining your home, and meeting key obligations like insurance.
Life events and future planning
What happens if I move house?
You may be able to transfer your loan to a new property, subject to approval.
What happens to my loan when I pass away?
When you pass away, your reverse mortgage does not end immediately, but it will need to be repaid in full within 12 months. Your estate or personal representative becomes responsible for managing the loan after you pass away.
The total amount owing (including the loan balance, interest, fees, and charges) is repaid according to your loan agreement.
The total amount owing (including the loan balance, interest, fees, and charges) is repaid according to your loan agreement.
How is the loan usually repaid?
The loan is typically repaid by selling the property that secures the loan, or using other funds from your estate. If the property is sold, the proceeds are used to repay the loan.
Can my family keep the home?
Yes, if they repay the loan balance. They may wish to seek financial advice.
Will my estate owe more than the value of the property?
No. Your loan includes a no negative equity guarantee, which means you (or your estate) will not have to repay more than the protected amount specified in your loan details, even if the loan balance exceeds the property value at the time of sale.
What happens if I want to sell my home earlier?
You can sell your home at any time. The loan will be repaid from the sale proceeds.
What happens if there are other borrowers?
If there is more than one borrower, the loan generally continues until the last surviving borrower passes away, or another relevant event occurs (as set out in your loan agreement).
What if someone is still living in the home?
If your loan includes a Lifetime Occupancy Promise, a nominated borrower may be able to remain in the home for as long as they wish, provided the loan is not in default.
Can I rent out the security property?
Yes, subject to approval. This will also depend on your loan terms. Please contact us to discuss your situation.
Can I use a reverse mortgage to pay for aged care?
Yes. Funds can be used to support aged care needs, and specific Aged Care Options may be available.
I am moving into aged care. Can I keep my reverse mortgage?
You may be able to vary your loan to an Aged Care Option, subject to eligibility and approval.
Will I still be able to leave an inheritance?
A reverse mortgage will reduce the equity available for inheritance. We can help you understand what may remain.
Changes and flexibility
What happens if interest rates change?
If you have a variable rate, it may change over time. We will notify you of any changes.
Will I be notified about changes to my loan?
Yes, we will communicate any important updates, including rate changes or changes to terms and conditions (as required by law).
Your protections and commitments
What protections do I have?
Your protections include:
- No negative equity guarantee
- Lifetime occupancy
- No required repayments
- Independent legal advice
Can I change my mind after settlement?
Yes. You have a 30-day cooling-off period to cancel your loan, subject to conditions.
Managing your loan online
Can I manage my loan online?
Yes. You can access your loan through internet banking or the Heartland Bank app.
What can I do in the app?
You can view your balance, request funds, and manage your loan.
How secure is the app?
We use secure systems and encryption to protect your data.
How do we protect your information?
Refer to our website for various resources, policies and terms including our Privacy Policy, Consumer Data Right Policy and Access T&Cs.
Borrower protection
The Heartland Bank Equity Access Loan (Reverse Mortgage) is designed to protect borrowers.
We recognise the trust customers place in us when taking out a reverse mortgage, and we take this duty of care seriously. We've developed a thorough application process and provide a number of protections so that you can feel confident in taking out a reverse mortgage with us.
Your home. Your security.
Our Heartland Bank promise is that you stay in your home and remain the owner. That will never change. A Heartland Bank Equity Access Loan (Reverse Mortgage) comes with two important protections built in.
-
No negative equity guarantee
You will never owe more than the value of your home when the loan is repaid, regardless of how the loan balance grows over time. This protection is a legislative requirement under Australian law. -
Lifetime occupancy rights
You have the right to remain in your home for as long as you choose and cannot be asked to leave because of the loan.
Independent legal advice
To take out a reverse mortgage loan with us, we require that you seek independent legal advice.
Independent financial advice
We recommend customers discuss their requirements and objectives with a financial adviser, and in some cases we make this mandatory. In addition, customers are encouraged to speak with Centrelink to ensure there is no impact on government entitlements.
Family involvement
Whether to involve family is up to our individual customers, however Heartland Bank actively encourages it and requires customers to confirm that they have considered this key part of the application process.
Loan projection
To assist you in making an informed decision, ASIC have developed a calculator to illustrate how much equity could remain in your property under different scenarios. Heartland Bank provides this projection to all customers, and anyone can go onto ASIC’s MoneySmart Reverse Mortgage Calculator to complete a calculation. Alternatively, one of our team can complete a tailored one for you.
Future need consideration
When deciding to take out a reverse mortgage, you’ll need to think about your future needs, like ongoing living expenses, aged care costs, medical expenses and plans to leave funds to beneficiaries. A big factor in these considerations is longevity risk – the risk of outliving financial resources.
Support for Vulnerable customers
We make sure our team is trained to recognise signs of potential vulnerability in our customers, and to respond with the right care and support.
Support services
Financial abuse
If a customer is experiencing abuse, they will be referred to the national Elder Abuse Phone Line: 1800 ELDERHelp (1800 353 374).
Memory loss
If a family member or friend is concerned about a customer's memory or confusion, or the customer has asked for help, they will be referred to Dementia Australia on 1800 100 500.
Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. Customers may also be referred to the National Debt Helpline on 1800 007 007. Further information on financial assistance is available on the financial tools page of our website.
Crisis support
If a customer needs crisis or emotional support, they will be referred to Lifeline's 24-hour support line on 13 11 14.
If a customer is experiencing abuse, they will be referred to the national Elder Abuse Phone Line: 1800 ELDERHelp (1800 353 374).
Memory loss
If a family member or friend is concerned about a customer's memory or confusion, or the customer has asked for help, they will be referred to Dementia Australia on 1800 100 500.
Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. Customers may also be referred to the National Debt Helpline on 1800 007 007. Further information on financial assistance is available on the financial tools page of our website.
Crisis support
If a customer needs crisis or emotional support, they will be referred to Lifeline's 24-hour support line on 13 11 14.
Caring for customers experiencing vulnerability
We are deeply committed to providing extra care for customers who may be going through a difficult time. We understand that your individual circumstances can change, and that some situations make the need for support greater.
While vulnerability can affect anyone, it may be heightened by things like age, disability, mental health conditions, cognitive impairment, serious illness, elder abuse, family or domestic violence, financial difficulty, or barriers related to language, literacy or cultural background, including for Aboriginal or Torres Strait Islander customers, or those living in remote areas.
We encourage you to share your circumstances with us. Without that, we may not be able to fully understand what you need, and we want to get it right.
For those experiencing vulnerability, we will:
While vulnerability can affect anyone, it may be heightened by things like age, disability, mental health conditions, cognitive impairment, serious illness, elder abuse, family or domestic violence, financial difficulty, or barriers related to language, literacy or cultural background, including for Aboriginal or Torres Strait Islander customers, or those living in remote areas.
We encourage you to share your circumstances with us. Without that, we may not be able to fully understand what you need, and we want to get it right.
For those experiencing vulnerability, we will:
- Respect your privacy and confidentiality
- Offer appropriate guidance and referrals to help you stay in control of your finances
- Enable you to appoint a third-party representative such as a power of attorney, administrator, financial manager or guardian to support you in managing your relationship with us (where a supporting legal agreement exists).
Elder abuse
Our team is trained to recognise the signs of elder financial abuse, including undue influence and unconscionable conduct, and to take steps to detect and prevent it wherever possible.
Support services
Financial abuse
If a customer is experiencing abuse, they will be referred to the national Elder Abuse Phone Line: 1800 ELDERHelp (1800 353 374).
Memory loss
If a family member or friend is concerned about a customer's memory or confusion, or the customer has asked for help, they will be referred to Dementia Australia on 1800 100 500.
Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. Customers may also be referred to the National Debt Helpline on 1800 007 007. Further information is available on the financial tools page of our website.
Crisis support
If a customer needs crisis or emotional support, they will be referred to Lifeline's 24-hour support line on 13 11 14.
If a customer is experiencing abuse, they will be referred to the national Elder Abuse Phone Line: 1800 ELDERHelp (1800 353 374).
Memory loss
If a family member or friend is concerned about a customer's memory or confusion, or the customer has asked for help, they will be referred to Dementia Australia on 1800 100 500.
Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. Customers may also be referred to the National Debt Helpline on 1800 007 007. Further information is available on the financial tools page of our website.
Crisis support
If a customer needs crisis or emotional support, they will be referred to Lifeline's 24-hour support line on 13 11 14.
How do I make a complaint?
If something hasn't met your expectations, we encourage you to let us know so we can make it right. You can lodge a complaint with us by:
- Phone: 1300 889 338
- Email: [email protected]
- Secure mail: via Internet Banking
- Post: The Complaints Officer, Heartland Bank Australia Limited, PO Box 18134, Collins Street East VIC 8003
We'll aim to resolve your complaint within five working days.
If you are not satisfied with our response, you may lodge a complaint with the Australian Financial Complaints Authority (AFCA). AFCA provides free and independent financial services complaint resolution and can be contacted on:
- Website: www.afca.org.au
- Email: [email protected]
- Phone: 1800 931 678 (free call)
- Mail: GPO Box 3
- Melbourne VIC 3001
Get in touch
If you'd like to find out more about a Heartland Bank Reverse Mortgage, request a guide or call us on 1300 889 338.
Contact us