Reverse Mortgage FAQs
Find answers to some common Reverse Mortgage FAQs below.
Will I still own my home?
This is perhaps the one of the most important of the reverse mortgage FAQs. Yes, you will always own your home and continue to live in it as long as you wish and benefit 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.
How do you value my home?
We will arrange for a registered valuer to visit your home to assess its value. A copy of this assessment will be provided to you. You will need to pay for the cost of the valuation, which will depend on the location and value of your property.
How and when is my loan repaid?
The value of your Heartland Reverse Mortgage, plus interest, is only due to be repaid when you move permanently from your home, when the property is sold or the last nominated resident moves out of the security property or passes away. The loan is usually repaid from the sale proceeds of your home and the balance is then retained by you or your estate. If you are moving into long term care, the loan would need to be repaid unless you are eligible and chose to apply for our Aged Care Option for 5 years (terms, conditions and fees apply).
Although the Heartland Reverse Mortgage is designed to last for as long as you wish to keep 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 your needs. With a Heartland Reverse Mortgage you do not need to make regular repayments.
Can I increase my loan amount?
When your Cash Reserve facility (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.
A Further Advance Fee will apply and a review of the value of your home will be required. This will be confirmed at the time of application. You will also be required to obtain independent legal advice on the Further Advance loan.
Some applicants (who we call Nominated Borrowers) may not be the sole owners of the home they live in. In these circumstances Heartland Seniors Finance will need to be contacted to ensure the application can proceed.
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 transfer the loan, fees will apply and will be added to your loan balance.
Can I rent out the security?
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’s requirements.
If your wish to lease out your owner occupied home, please contact Heartland to discuss your situation. This is not always possible and is based on your specific circumstances and loan conditions.