Secondary Property Loan

Release some of the equity in your investment property or holiday home to fund a more comfortable retirement

A Secondary Property Loan has all the benefits of a standard reverse mortgage, with the added flexibility of nominating a residential property other than your home as the loan's security. Features include:

  • You remain the owner of your investment or holiday property, benefiting from any potential increase in property value over time*.
  • Regular loan repayments are not required, though they can be made at any time. 
  • Reverse mortgage interest is calculated on the balance outstanding, and added monthly to your loan. 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.
  • The funds can be used to help you live a more comfortable retirement. Our customers often use their funds to pay for home improvements, debt consolidation, travel, updating their car, or as extra income.
  • Our Secondary Property Loan and its application process have your peace of mind at heart – you can read about our protections here.
  • The loan can be tailored to your needs, with flexible loan options to enable you to access to the funds you need, as you need them. Watch the video below for more information.



Heartland is proud to have helped over 17,000 Australian seniors enjoy their retirement with peace of mind with our reverse mortgage. We frequently receive feedback from our customers, which you can read on our Customer Stories page.

*There is no assurance that property values will increase over time, and property values may also decline.


Frequently Asked Questions

How much could I borrow?

The maximum loan value you may be eligible for is determined by the age of the youngest borrower and the value of your property.

Secondary Property Loan

Age of youngest borrowerMaximum % of property's value available*
60 11.25%
65 15.00%
70 18.75%
75 22.50%
80 26.25%
85 30.00%
90 33.75%

*Based on the Standard Reverse Mortgage percentage, minus 25%.

Who can apply?

Anyone aged 60 or over who owns a property that is not their primary residence can apply for a Secondary Property Loan with Heartland Seniors Finance.

What are the property criteria?

The property to be mortgaged must be of a conventional build. It must also meet our minimum property valuation criteria and may be dependent on location.

The property should be mortgage free. However, if there is a mortgage outstanding it must be repaid on settlement of the loan.

As security for your loan, we must be the first and only mortgage registered on title. This means you will be unable to take out an additional mortgage from another lender using the mortgaged property as security.

How are costs calculated?

The interest rate is calculated on the daily balance, and added monthly to your account. Our variable interest rates allow customers to make voluntary partial or full repayments at any time. 

Repayment of the total loan is triggered when the last nominated borrower ceases to reside in their home (primary residence) or sells the mortgaged secondary property.  

There are fees and charges for setting up the loan, and these are dependent on which options you select. Heartland’s fees can be found on our Fee Schedule.

How and when is my loan repaid?

Under a Secondary Property Loan, the loan balance will become due and payable when the security property (in this case the secondary property) is sold or the last Nominated Borrower no longer resides in their owner occupied home (or primary residence). This could be due to moving house, moving into a retirement village, aged care, or death.

The loan is usually repaid from the sale proceeds of the secondary property 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 choose to apply for our Aged Care Option for 5 years (loan approval criteria, 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 incurring penalties, providing you with flexibility to manage your finances in the way that suits your needs. 

For further information, please contact our friendly team on 1300 889 338 or [email protected].

Back to top