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Enjoy increased flexibility with our reverse mortgage redraw

05 November 2020

Heartland Bank News

Heartland’s flexible reverse mortgage loan is designed to fit with the lifestyle of Australian seniors, to help them live a more comfortable retirement. Our loan allows the customer to be in control of how and when they choose to access their home equity.

One very useful part of our product, for new loans, is our redraw facility.

Introduced from 1 April 2017, Heartland’s redraw allows customers to draw on the funds that they have already paid into their loan. You are able to make repayments at any time, with the availability to apply to draw these funds again later, taking away the potential financial stress and decision to making repayments now, versus holding onto funds for future needs.

One of Heartland’s promises to you is that no regular repayments are required until the end of the loan. However, if you wish to do so, you are free to make repayments at any time. Many of our customers enjoy the flexibility that this repayment structure allows. You can choose to pay off the full interest each month to avoid your loan balance increasing, make periodic repayments when you can afford to do so to reduce interest charges (or even pay off some if the loan capital), or, forget about repayments entirely and wait until the end of your loan when your house is sold, to repay the loan in full. The beauty of this, is that the choice is up to you – and interest is only charged on the outstanding loan balance.

Life can be unpredictable, and you never know when you may need some extra cash for unforeseen circumstances, unexpected bills, or maybe you just wish to upgrade your car. It is for this reason that our market-leading, award-winning product includes redraw.

As redraw is available for all new loans documented from 1 April 2017, if you are an existing customer without access to redraw, but this is of interest to you, we may be able to approve a loan variation for you, updating your loan terms to allow redraw access.

Please note, a redraw application has a $60 fee and a minimum drawdown of $2,500. To vary your loan terms to include a redraw, the variation fee for new loan documents is $295, is subject to an assessment, and your loan will be on our current terms.

If you have any further questions, would like to find out how much you have in your redraw facility, apply for a reverse mortgage with a redraw, or request a variation, please contact our customer care team on 1300 889 338 or email [email protected]. We are here to help you.

Information is accurate as of 5 November 2020 and may change from time to time. Customers can apply for redraw at any time, however it is not guaranteed that we will approve this application.