Reverse Mortgage Fees and Legal Requirements

Arrangement fees

There will be charges in order to set up your Reverse Mortgage. All our Reverse Mortgage fees, except the valuation fee, will be deducted from your initial drawdown.

For our current fees, please refer to the Resources section.

Other fees involved in setting up your Reverse Mortgage include Government charges and your own solicitor’s costs.

Legal work

Heartland Seniors Finance retains its own legal advisers and you are not required to pay additional fees to cover Heartland Seniors Finance legal work.

To protect your interests, your own legal adviser should act for you. Your solicitor will advise you of their fees for completing the necessary legal work. You will be responsible for your own solicitor’s fees.

Interest rates

Like any other loan, interest will be charged on your Heartland Reverse Mortgage. Interest will be charged at our applicable published variable market rate (approximately 1.5% to 2% over the standard variable mortgage rates published by the major banks) and will be added to the amount you have borrowed to form the overall loan balance which will change daily.

Interest is calculated on the daily balance, compounded and debited monthly to your loan account and paid, together with the principal, at the end of the term of the loan when you move permanently from your home. Being a variable interest rate, it is subject to change. Should the interest rate change, we will publish these changes in a national newspaper, on our website and also detail the new interest rate on your next statement.

Keeping track

To help you monitor your mortgage, we will send you a statement every six months detailing the transactions on your mortgage over the previous period, including interest and any applicable fees and charges.

Your obligations under the Loan

In order for us to keep our promises, you will have a number of legal obligations to us. These include continuing to live in and look after your home, making necessary repairs as required and protecting it from damage. You will also need to continue to pay your rates and adequately insure your property. If you do not meet your obligations under the mortgage, Heartland Seniors Finance may be unable to honour its promises to you.