Fees and legal
Find out more about the fees and legal requirements of a Heartland Reverse Mortgage.
There will be charges in order to set up your reverse mortgage. All Heartland Reverse Mortgage fees, except the valuation fee, will be deducted from your initial drawdown.
For our current fees, please refer to the Resources section.
Other fees involved in setting up your reverse mortgage include government charges and your own solicitor’s costs.
Heartland retains its own legal advisers and you are not required to pay additional fees to cover Heartland's legal work.
To protect your interests, your own legal adviser should act for you. Your solicitor will advise you of their fees for completing the necessary legal work. You will be responsible for your own solicitor’s fees.
Like any other loan, interest will be charged on your Heartland Reverse Mortgage. Interest will be charged at our applicable published variable market rate and will be added to the amount you have borrowed to form the overall loan balance which will change daily.
Interest is calculated on the daily balance, compounded and debited monthly to your loan account and paid, together with the principal, at the end of the term of the loan when you move permanently from your home. Being a variable interest rate, it is subject to change. Should the interest rate change, we will publish these changes in a national newspaper, on our website and also detail the new interest rate on your next statement.
To help you monitor your mortgage, we will send you a statement every six months detailing the transactions on your mortgage over the previous period, including interest and any applicable fees and charges.
Your obligations under the loan
In order for us to keep our promises, you will have a number of legal obligations to us. These include continuing to live in and look after your home, making necessary repairs as required and protecting it from damage. You will also need to continue to pay your rates and adequately insure your property. If you do not meet your obligations under the mortgage, Heartland may be unable to honour its promises to you.
Why is flexibility important?
Everyone has different needs when entering retirement, and these may change as you age, meaning flexibility is important. Flexibility can include the loan purposes, flexible drawdown options, and repayment terms (including access to redraw). A Heartland Reverse Mortgage is designed with these flexibilities in mind to allow each customer to tailor their loan to suit their individual needs, including the ability to draw down funds when needed, as interest is only charged on funds when they are drawn down.
Why are low fees important?
It is important to consider both the interest rate and the fees that come with any loan product. There are several fees you may come across when applying for a loan that can add up, which is why loan and drawdown flexibility, fees, and the interest rate should be considered when looking at applying for a reverse mortgage. It is also important to make use of loan projection tools such as ASIC's MoneySmart Reverse Mortgage Calculator to understand the true costs, and always consider the comparison rate. Heartland provides the ASIC projections to every customer, and their solicitor, prior to taking out a Heartland Reverse Mortgage.
How do I know what product is best for me?
Depending on your individual retirement needs, a reverse mortgage may be more suitable for you than other equity release options, or vice versa. We encourage everyone considering a reverse mortgage to do their own research, ascertain the home equity required for future needs, make use of the tools and resources available (including on our website), and speak to Centrelink, family and friends.
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Have more questions?
If you would like to discuss the protections Heartland has in place or request an application pack, please don’t hesitate to contact our friendly team.