Reverse mortgage - Key information

What is a reverse mortgage?

A reverse mortgage is like a normal home loan that has been designed for the needs of seniors. It allows people aged 60 and over to release home equity to live a better retirement. No regular repayments are required – the debt is repaid from the future sale of the property.

Importantly, you continue to own and live in your home for as long as you wish, continuing to enjoy the benefits of your community, social network, and family memories. You also benefit from any potential increase in the property value.

How does a reverse mortgage work?

Reverse mortgage loans are very flexible. You can use the funds for any worthwhile purpose, including home improvements, travel, a new car, debt consolidation, medical costs, aged care, or living expenses.

You can choose to receive your reverse mortgage loan amount as a lump sum, plus a regular advance, cash reserve facility (similar to a ‘line of credit’), or a combination of all three. You are also able to repay your reverse mortgage partially, or in full, at any time without paying penalty charges, adding further flexibility.

How costs are calculated

Reverse mortgage interest is calculated on the balance outstanding, and added monthly to your loan. Voluntary repayments can be made at any time, which reduces the balance and interest charged.

At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable. There are be fees and charges for setting up the loan, and is dependent on what options you select. Heartland’s fees can be found on our Fee Schedule.

The effects a reverse mortgage can have on your home equity over time

About reverse mortgage interest rates

Heartland only offers a variable interest rate, providing further flexibility as voluntary repayments can be made to the reverse mortgage.

The interest rate is calculated on the daily balance, and added monthly to your account.

Heartland’s Standard Reverse Mortgage rate is:

Interest Rate:


Comparison Rate^:


Reverse Mortgage Calculator

The amount you can borrow is determined by your age and the property value. Find out how much you could borrow below.

ASIC’s money smart calculator for reverse mortgages can assist further.

How much could you borrow?

Number of borrowers

Minimum age 60
Minimum age 60
Minimum property value $200,000

Do you want to protect a portion of the equity in your home?

Maximum 50%

*This calculation does not constitute an approval but provides an indicator of maximum possible entitlement. Applications for a Heartland Seniors Finance Reverse Mortgage are subject to our normal loan approval criteria, which includes a valuation. Full terms and conditions will be included in any loan offer.

How a reverse mortgage can affect your pension

The aged pension can affect everyone differently. You can access some of the equity in your family home without usually impacting Government entitlements, however this will be dependent on your financial situation and assets. You should contact Centrelink to discuss your individual circumstances when applying for a reverse mortgage.

About Heartland

Heartland Seniors Finance is Australia’s leading reverse mortgage provider. Established in 2004, Heartland has assisted over fifteen thousand seniors release equity from their home, helping them to live a better retirement, with independence and dignity.

We are proud to be Canstar’s Reverse Mortgage Provider of the Year since 2016, and Money Magazine’s Best Reverse Mortgage for the past three years.

Our product is very flexible, with multiple drawdown options, aged care solutions, and the ability to protect equity in the property for future needs and bequeathment.

Heartland also has a dedicated team of reverse mortgage specialists who deliver a personalized service, and see customers as not just a number but individuals with needs that require solutions. A market leading product and personal service makes Heartland Seniors Finance the Reverse Mortgage lender of choice for many Australian seniors.

Can we help you to live a better retirement?

Reverse mortgage considerations

Remain the owner of your home, benefitting from any increases in home value.

Loan balance increases over time as interest accrues and regular repayments are not required.

Take your loan as a lump sum, cash reserve facility, regular advance, or combination.

Variable interest rates mean that there will be changes to what you are charged over time.

No monthly repayments required; loan balance is paid when you move out.

Drawing funds from your property now can reduce what you can access from it later for future needs.

You can use your money for any worthwhile purpose including home improvements, travel, a new car, debt consolidation, medical costs, aged care, or living expenses.

Heartland’s loans have a ‘No Negative Equity Guarantee’, meaning the amount required to repay will never exceed the net sale proceeds of your home.

Heartland is Australia’s only specialist reverse mortgage provider, our dedicated team provide personal service where you are more than a number.

Peace of mind – knowing you have access to the equity in your home without having to sell.

A better lifestyle in retirement – less stress paying every day bills and access to funds when required.

Live in your home as long as you choose - enjoying the independence, security, and connection to your community, family, and friends.

Subject to complying with the terms and conditions of the Heartland Reverse Mortgage, you will not owe more than the net sale proceeds of your home and you can keep your home for as long as you choose. There is no assurance that property values will increase over time, and property values may also decline.

^Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees and costs savings, such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Back to top