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[Video] What is a reverse mortgage?

01 March 2021

What is a reverse mortgage, how exactly do they work, and how could they help you live a more comfortable retirement? Heartland breaks it down in our new animation video. Watch it here:

[TRANSCRIPT]

What is a Reverse Mortgage?

A reverse mortgage is like a normal home-loan designed for the needs of people over 60.

If you own your own property, you could use a reverse mortgage to release the equity in your home to fund a more comfortable retirement – without having to sell.

No regular repayments are required, and the debt is repaid from the future sale of the property.

A reverse mortgage is flexible, you can use the funds for a range of purposes to suit your needs.

Our customers use a reverse mortgage to fund home renovations, debt consolidation, for bills and expenses, use it for travel and holidays, to upgrade a motor vehicle, or pay for medical and aged care costs.

You can also access ongoing funds to supplement your income, or even set some aside for those unplanned, future emergencies.

We have found even a small amount can be transformational to life in retirement.

Here’s how it works

The amount borrowed can be taken when you need it, now as an initial advance, as required through a cash reserve (like a line of credit), as an ongoing regular advance, or a combination of all three.

The total amount you can borrow depends on a number of factors, including age and the value of your home – at 60, you could access 15% of your home’s value, but by 90 it’s possible to release 45%.

Interest is only charged on the amount borrowed and is added to the loan monthly.

No regular repayments are required, although you are free to make voluntary repayments at any time.

The loan, including interest, is repaid when you move out of your home, usually when you sell the security property, or from the estate when the last surviving borrower passes away.

You continue to own your property, live in your home for as long as choose, and benefit from any increase in its value.

Heartland is Australia’s leading reverse mortgage provider, we have helped over 21,000 Aussies live a more comfortable retirement, with independence and dignity, with our award-winning reverse mortgage.

Interested in living a retirement on your own terms, free from the financial stress of ongoing loan repayments? Call us on 1300 889 338 or visit our website to find out more about using your existing home equity to live a more comfortable retirement.

To find out more, download your free Reverse Mortgage Guide.

Information provided is accurate as at 1 March 2021 and may change from time to time.