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Introducing Heartland’s Well-Life Loan

30 March 2021

Heartland Bank News

Heartland Finance is pleased to announce the launch of Well-Life Loans. Well-Life Loans joins Heartland’s existing retirement and business offerings, our Heartland Reverse Mortgage and Open for Business (O4B) loans.

What is a Well-Life Loan?

A Well-Life Loan is an unsecured loan of up to $20,000 that is designed for people 60 and over who need simple access to a one-off lump sum loan to fund their next step in life. Whether you want to remodel your home, refinance existing debt or treat yourself to that brand-new car you’ve been dreaming of, a Well-Life Loan could help you fund that next step without the need to make regular payments right away.

The funds are accessed as one initial payment (of between $5,000 to $20,000). Interest is capitalised and added to the loan monthly up to a total loan limit of $30,000. Once your total loan amount, including interest, has reached this limit, a payment will need to be made to bring it below the limit again. You also have the ability to make loan repayments at any time without penalty.

What are the eligibility criteria for a Well-Life Loan?

To be eligible for a Well-Life Loan, you must be 60 years or older and the registered owner of your residential property. This property must meet our criteria in terms of size, building materials and location – we’ll discuss this after you apply.

Heartland will check your credit, and needs to be satisfied you can meet interest payments on the loan, if you’re required to do so, to remain under the agreed loan limit.

Can I take out a Well-Life Loan if I have an existing mortgage?

A Well-Life Loan is only available for people who own their homes outright, or who will use the loan to fully repay an existing mortgage.

Do I need to register a mortgage or caveat against my property?

No – this is an unsecured loan. However, your property will need to be kept mortgage-free, as your Well-Life Loan may need to be repaid from the proceeds when it’s sold.

What is the interest rate for a Well-Life Loan?

Our current Well-Life Loan variable interest rate is 7.50% p.a. (comparison rate 7.67% p.a.*). A variable interest rate gives you the flexibility to repay your loan partially, or in full, at any time without paying penalty charges.

Further details can be found in the fee schedule, which you can download from our Well-Life Loan website.

What happens if my loan exceeds the $30,000 limit?

If your total loan amount exceeds the $30,000 limit, you’ll need to either make repayments to ensure your loan limit is not exceeded or consider applying for a Heartland Reverse Mortgage (subject to terms, conditions and loan approval criteria).

Feel free to get in touch with our team to discuss what option may be right for you or check out our Well-Life Loan website to find out more.

 

*The comparison rate is based on a loan of $30,000 for a term of 5 years. Interest is calculated daily and debited monthly. 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.

Information provided is accurate as of 30 March 2021 and may change from time to time.