[VIDEO] Busting myths: Reverse Mortgage Protections

22 February 2019


Did you know, since 2004, Heartland has helped over 15,000 Australians live a more comfortable retirement with our award-winning reverse mortgage.

Today, with rising living costs and limited pension incomes, reverse mortgages are more popular than ever.

But some misconceptions persist. Let’s bust three common reverse mortgage myths:

MYTH #1 – The lender owns your home
Incorrect. You continue to own your home and can live there for as long as you choose. Just like a standard home loan, the lender takes a mortgage over the property.

MYTH #2 – You will leave debt to your children
Incorrect. Reverse mortgages are one of the most heavily regulated consumer finance products in Australia. A ‘No Negative Equity Guarantee’ is enshrined in law to protect borrowers from ever owing more than the net sale proceeds of the property.

MYTH # 3 – You have to make regular repayments
Incorrect. While you are free to make regular repayments at any time, there is no requirement to do so. The interest is capitalised, which means it’s added to the balance of the loan. The loan, plus interest is only due to be repaid when you leave the property – most commonly when it’s sold.

Heartland takes its duty of care to customers seriously.  Our reverse mortgage has been designed to provide you with maximum peace of mind:

  • Lifetime Occupancy Guarantee,
  • ‘Equity Protection’ Options,
  • No Negative Equity Guarantee,
  • 30 day ‘cooling off’ period.

Heartland’s first priority is that you make an informed decision:

  • We require you to get independent legal advice,
  • We encourage family involvement,
  • We provide projections to illustrate impact of loan on your equity,
  • We recommend you talk with Centrelink to check pension entitlements are not affected,
  • And we recommend you obtain financial advice.

Live a more comfortable retirement with peace of mind.


If you’d like to find out more, you may find our free Information Pack a useful resource.


Information provided is accurate as at 22 February 2019 and may change from time to time.