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Find out what you can do with a reverse mortgage

A reverse mortgage can be used for any worthwhile purpose that helps you live a more comfortable retirement. Read about some of the most common purposes below.

What you can do with a reverse mortgage

View all our loan purposes:

Pay off debt

No one wants to spend their retirement years worrying about debt and keeping up with repayments, but it is a sad fact that many do.

For many people over 60, the majority of their wealth is tied up in residential property – and in some cases, they might be carrying mortgage debt into their retirement. More than 50% of our customers use a reverse mortgage to consolidate debt to free up cash flow, remove stress and provide peace of mind.

Heartland’s variable interest rate is often lower than credit cards or personal loans. Once the lump sum has been used to repay debts, additional funds could be accessed for any worthwhile purpose, including home improvements, travel, a new car, medical costs, or living expenses. As well as an initial advance, funds can also be drawn as a regular advance, or cash reserve (like a line of credit), adding further benefit.

A Heartland Reverse Mortgage could be the solution you need

  • Heartland’s variable interest rate is often lower than credit cards or personal loans.
  • Once the lump sum has been used to consolidate debts, additional funds could be accessed for any worthwhile purpose, including home improvements, travel, a new car, medical costs, or living expenses.
  • As well as an initial advance, funds can also be drawn as regular advances, or cash reserve (like a line of credit), adding further benefit.
  • If you currently have a reverse mortgage with another provider, Heartland may also be able to refinance this for you to provide additional funds and flexibility in your retirement.
  • Regular repayments are not required on a reverse mortgage. The interest is calculated on the balance outstanding and added monthly to your loan.
  • Voluntary repayments can be made at any time, reducing the balance and interest charged. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable.
Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage to pay off debt

Flexible cash flow

Flexible cash flow

Take your loan as a lump sum, cash reserve facility, regular advance or a combination.

No need to move

No need to move

Remain the owner of your home and benefit from any increases in home value.

Peace of mind

Peace of mind

Have peace of mind knowing you have access to equity in your home without having to sell.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Home improvements

Approximately 50% of our customers take out a reverse mortgage for home repairs, renovations and improvements.

We know you want to stay in your home for as long as possible, so it’s important that your home is fit for purpose.

Customers who take out a reverse mortgage for home repairs use it to future-proof their home, both to improve their overall wellbeing and protect the value of the property. Common improvements include:

  • installing rails, bars and other safe guards to prevent falls
  • rearranging the kitchen to enable easier, safer access
  • repairing cracked pavement or concrete around the home
  • installing a stair lift to aid mobility.

The longer home repairs are delayed, the higher the risk of permanent damage to your home, a potential decrease in property value and a reduced quality of retirement.

Improve your property with a reverse mortgage for home repairs

Finding the money for property-related expenses can be difficult when you’ve got more immediate costs such as food, utilities and bills to worry about.

A reverse mortgage can benefit seniors who are either unable to qualify for a traditional mortgage or personal loan due to age and income, or don’t want the additional stress of paying it back regularly.

One of the benefits of a reverse mortgage is that regular loan payments are not required. The interest is calculated on the balance outstanding and added monthly to your loan.

Voluntary repayments can be made at any time which reduces the balance and interest charged. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage for home improvements

Peace of mind

Peace of mind

Have peace of mind knowing you have access to equity in your home without having to sell.

Flexible cash flow

Flexible cash flow

Tell us how much you need to pay for home improvements as an initial advance, and then you may be able to set up a cash reserve facility, regular advances, or a combination for your future needs.

Add value to your property

Add value to your property

You can use your money for any worthwhile purpose, including needed home repairs, improvements and upgrades – adding value to your home!

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Day-to-day expenses

Around 80% of retirees receive an age pension. With compulsory superannuation only coming into effect in 1993, many Australians working during the 50s, 60s and 70s may not have accumulated enough super to fund what is considered a ‘comfortable retirement’.

If you’re finding it increasingly difficult to make ends meet on a limited income, you are not alone. Many Australians in retirement are worried about things like switching the heater on in winter, or finding the money to pay for medical expenses, a car service or even a trip to visit the grandkids. One option to help relieve everyday expense stress is to release some of your home equity with a reverse mortgage.

Take the stress out with a Heartland Reverse Mortgage

More than a quarter of our customers take out a Heartland Reverse Mortgage to help supplement their income to pay for their bills, living expenses and unexpected costs such as heating, car repairs or a trip to visit the grandkids.

Interest is only charged on the balance outstanding, so the savings over time can be substantial when compared to drawing a large lump sum. No regular repayments are required, though they can be made at any time, and the debt is repaid from the future sale of the property.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage for day-to-day expenses

No need to move

No need to move

Remain the owner of your home, benefitting from any increases in home value.

Peace of mind

Peace of mind

Have peace of mind knowing you have access to equity in your home without having to sell.

Flexible cash flow

Flexible cash flow

Take your loan as a lump sum, cash reserve facility, regular advance or a combination.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Travel & holiday

You’ve worked hard across decades. Now that you’re in your retirement, it’s time to take a load off and relax.

Whether you’ve been dreaming of a bucket list escape, an Australian caravanning adventure or taking a trip to see the grandkids, there is now nothing holding you back from your trip of a lifetime. Except money.

Finding the spare cash for a holiday can be difficult, particularly when there are more immediate priorities, such as utilities and other everyday bills, home maintenance and medical expenses.

Faced with only personal loans or credit cards to finance a trip, many seniors simply miss out on travelling during retirement.

Travel or visit your relatives with a Heartland Reverse Mortgage

A Heartland Reverse Mortgage could help you fund your next holiday – over 20% of our customers use their reverse mortgage to pay for a trip.

It’s a cost effective and flexible alternative to taking out a credit card or personal loan, as the interest rate is often lower.

Not only that, regular loan repayments are not required, helping you reduce stress and free up cashflow. The interest is calculated on the balance outstanding and added monthly to your loan. Voluntary repayments can be made at any time if you choose, which reduces the balance and interest charged. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage for travel

Flexible cash flow

Flexible cash flow

Tell us how much you need for your trip as an initial advance, and then you may be able to set up a cash reserve facility that can be accessed in the future when needed.

Peace of mind

Peace of mind

Live a more comfortable retirement without selling your home.

No regular repayments required

No regular repayments required

There is no requirement to make any repayments until the end of the loan, however you are free to do so at any time.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Buy a car

A Heartland Reverse Mortgage could give you the freedom to update things which truly make a difference to your everyday life, like a car.

Releasing equity to purchase a large asset like a new car fits within our worthwhile purposes criteria for a Heartland Reverse Mortgage – this is because we see the value a new car can provide, like improved safety, comfort and reliability.

More than 20% of our current customers have used a Heartland Reverse Mortgage to replace or repair their car, as it hasn’t required them to exhaust their savings or take out a loan that could have a higher interest rate.

Upgrade to a more reliable car with a Heartland Reverse Mortgage

Almost 85% of Australians aged 65 and over own their home and, for most, it is their most valuable asset.

With a Heartland Reverse Mortgage, you may be able to access a portion of this wealth to purchase a new car or pay for necessary repairs and maintenance to your current vehicle.

One of the benefits of using a reverse mortgage to buy a car is that regular loan repayments are not required, helping you reduce stress and free up cash flow. The interest is calculated on the balance outstanding and added monthly to your loan.

Voluntary repayments can be made at any time if you choose, which reduces the balance and interest charged. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the amounts drawn, will be payable.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage to buy a car

Upgrade your safety and comfort

Upgrade your safety and comfort

Purchase a new car with improved safety ratings and fuel economy.

No need to sell your home

No need to sell your home

Fund your transport requirements, while still retaining ownership of your home.

No regular repayments required

No regular repayments required

There is no requirement to make any repayments until the end of the loan, however you are free to do so at any time.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Aged care

In 2014 the Living Longer, Living Better reforms were introduced by government to improve the accessibility, sustainability and quality of aged care in Australia.

However, since then, aged care costs have increased. These costs can be significant, depending on the type of accommodation chosen and the geographical location of the facility. Nowadays, if you have a family member going into aged care, you may confront several fee layers, such as the following.

  • Refundable Accommodation Deposit (RAD)
  • Daily Accommodation Payment (DAP)
  • Means-tested daily fee
  • Daily care fee.

The RAD, an upfront lump sum payment to the aged care facility, is often the most difficult to pay. Families are often shocked to find they may need to raise between $300,000 and $500,000 – and in some cases even more – if they want to pay for residential aged care with a lump sum via a RAD rather than paying a DAP on an ongoing basis.

It might seem like the only way to pay this lump sum RAD is to sell the family home, which can be a distressing outcome for families. However, in many cases, the home could be retained by using a reverse mortgage to fund aged care entry costs.

Avoid selling your home with a reverse mortgage

If you or an elderly family member has limited available cash to pay for a RAD, or other aged care fees, Heartland’s Aged Care Option could be an alternative to selling the home. Depending on borrower age, you could release as much as 50% of the home value to pay for a RAD or DAP.

Heartland’s Aged Care Option is also one of the few specialist aged care reverse mortgage loan products available in Australia.

With a 5-year loan term and no need for ongoing loan repayments (the interest is added onto the loan monthly), the Aged Care Option can provide families much needed relief. You can keep the family home and release equity to pay for aged care costs, such as the lump sum RAD or as regular advances to fund ongoing DAP. Depending on your circumstances, this may have a potentially lower impact on the aged pension (compared to selling the home to pay for aged care costs) and may save you and the family a substantial sum over time.

See some helpful aged care resources below.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage for aged care expenses

Flexible cash flow

Flexible cash flow

Tell us how much you need for your RAD and, if eligible for more, you may be able to set up a regular advance and/or cash reserve that you can use for other ongoing care expenses.

No need to sell your home

No need to sell your home

You retain ownership of your home, providing breathing space to make future decisions.

No regular repayments required

No regular repayments required

However, you can make repayments if you wish without penalties. The debt is ultimately repaid from the future sale of your property, once you decide to sell or after you pass away.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now

Home care

Use a Heartland Reverse Mortgage to pay for essential home care and enjoy the freedom and independence of ageing in your own home.

What is ageing in place, and what are the benefits?

The term ‘ageing in place’ refers to remaining living at home, in your community, with some level of independence, rather than moving into Residential Aged Care.

According to a research report released by RMIT (the Royal Melbourne Institute of Technology), which was supported by Heartland about financing ageing in place, 90% of Australians aged 60 and over want to remain in their homes for as long as possible. However, 40% were unsure if they could afford aged care costs in the future, and only 25% believed they could afford the costs of aged care.

The age pension alone, even with a subsidised Home Care package, may not be enough to cover all the costs associated with ageing in place. This is where a reverse mortgage with Heartland could help.

If you or an elderly family member has limited available cash to pay for home care, Heartland’s Standard Reverse Mortgage could be an alternative to selling the home. Depending on your age, you could release as much as 45% of the equity in your home.

Find out more about how a Heartland Reverse Mortgage works.

Providing further support

Heartland is committed to enabling Australians aged 60 and over to age in place, if that is what they choose to do. To further support this, we have introduced the following initiatives.

  • Minimum loan waiver – Heartland has waived our minimum upfront initial loan amount requirement (usually $5,000) when a purpose of the loan is to fund home care needs.
  • Granny flat construction – A Heartland Reverse Mortgage can also be used to fund the construction of a granny flat (subject to our usual loan criteria, including age, location, and valuation). More about the Federal Government’s proposed changes to the Capital Gains Tax exemptions on granny flat construction can be found here.

Home care

Ageing in place with a Home Care Package

The Australian aged care system is designed to provide older people with extra assistance, whether in a residential aged care facility or through a Home Care Package. A Home Care Package is a co-ordinated package of service and care, subsidised by the Australian government, which allows an individual to age in place and live independently in their own home.

As everyone’s needs are different, Home Care Packages can range from basic care to higher levels of care, and subsidies are provided based on an individualised income and affordability test. If you have a family member that requires home care, there may be a number of fees payable, which, depending on the level of care required, could range from approximately $9,000 - $52,000 per year.

See some helpful aged care resources below.

Download your free reverse mortgage guide

Download your free
reverse mortgage guide

Download guide

Benefits of using a reverse mortgage for home care

Flexible cash flow

Flexible cash flow

Take your loan as a lump sum, cash reserve facility, regular advance for up to 10 years, or a combination of these, to pay for home care fees without a minimum initial advance.

No need to sell your home

No need to sell your home

You retain ownership of your home, providing breathing space to make future decisions.

No regular repayments required

No regular loan repayments required

Have peace of mind knowing you have access to equity in your home without having to sell.

Customers stories

This reverse mortgage was a lifesaver; it has enabled me to do what I want to in my retirement. Great product. Double quote
Sally
Melbourne
Our reverse mortgage will allow us to make our new home very comfortable and increase its value. Double quote
Edwin
Adelaide

Why choose Heartland?

Since 2004, Heartland Reverse Mortgages has helped over 21,000 senior Australians release the equity in their home to live a more comfortable retirement with our reverse mortgage.

Being a specialist lender, Heartland understands the needs of senior Australians and offers an award-winning, market leading product. With a flexible product, responsible fulfilment process, and considerable customer protections, Heartland is Australia’s leading reverse mortgage provider.

Can we help you live a more comfortable retirement?

Apply now