At Heartland, we have developed a thorough application process and provide a number of protections so that you can feel confident in taking out a reverse mortgage with us.

One of these protections include our Equity Protection Option, where you may choose to protect a percentage of the eventual net sale proceeds of your home (up to 50%). 

When your loan is repaid, as long as the terms and conditions of the loan are met, you or your estate are guaranteed to receive that protected percentage at a minimum.

But what could this look like in practice, and will you be able to borrow the amount you require while utilising the Equity Protection Option?

Let’s look at an example from one of our customers, Peter*, who applied for the Equity Protection Option when requesting a Heartland Reverse Mortgage.  

Peter’s case study

Peter owns his own property in Coolangatta valued at $510,000. 

At age 92, he applied for a Heartland Reverse Mortgage to repay $120,700 of outstanding debt, and requested $60,000 for home improvements, totalling $180,700. 

He did not require any regular income (regular advances) or a cash reserve facility. 

Peter chose to apply for Heartland’s equity protection option to protect 20% of his home value, which reduced the amount he could borrow by his chosen percentage, but also guaranteed he receives that amount, at a minimum, when his loan is repaid in the future. 

How much could he borrow?

$510,000 (home value) – 20% (Equity Protection Option) = $408,000 (new home value)

92 (age) = 50% LVR (maximum potential loan)

50% (LVR) x $408,000 (new home value) = $204,000

Heartland could lend the requested funds of $180,700, with the condition that he used his new Heartland loan to refinance his current mortgage on settlement, as Heartland must be the first and only mortgage on the Certificate of Title.

Find out the maximum you may be able borrow here.

Want to know more? Find out more about Heartland’s Equity Protection Option or request your free Reverse Mortgage Guide to learn about how a reverse mortgage works, including how interest is charged and when the loan is repayable.

Ready to apply? You can now Apply Online, or request an Application Pack that provides everything you need to apply.

If you require any assistance, feel free to get in touch, we are here to help you.

*Names have been changed to protect the privacy of our customers. 

Information provided is accurate as of 6 June 2023 and may change from time to time.