Customer FAQs

General Decision making Online banking Vulnerable customers Elder abuse Power of Attorney New customers Borrower protection

Answers to frequently asked questions

How much can I borrow?
The maximum amount available to borrow is calculated by applying a Loan to Value Ratio (LVR), which is based on the age of the youngest person applying for the loan and increases by 1% for each year starting from age 60. The LVR is applied to the valuation of the property. An example of how the maximum LVR is applied is detailed below for a Heartland Bank Reverse Mortgage.

Standard Heartland Bank Reverse Mortgage*
Age of youngest
borrower		 Maximum % of home's
value available
55** 15%
60 20%
65 25%
70 30%
75 35%
80 40%
85 45%
90 50%
*Subject to lending criteria, property location and change. If the security property is an investment property or holiday home, the maximum amount available is reduced by 10% under our Secondary Property Loan.
**Where one borrower is aged 60 or over and has a partner between the ages of 55 and 59 you may be able to access a loan on your owner-occupied home.
Can a Reverse Mortgage affect my pension?
The aged pension can affect everyone differently. You can access some of the equity in your family home usually without impacting Government entitlements. However, this will be dependent on your financial situation and assets. Heartland Bank recommends that you contact Centrelink to discuss your individual circumstances when applying for a reverse mortgage.
How and when is my loan repaid?
With a Heartland Bank Reverse Mortgage you do not need to make regular repayments. The total loan amount, including accumulated interest, is usually repayable when you move permanently from your home; this could occur when you sell your property, move into long-term care or pass away. The loan is usually repaid from the sale proceeds of your home, and the balance is then retained by you or your estate.

Although a reverse mortgage is designed to last for as long as you wish to keep your home, you may repay all or part of your loan at any time without penalty, providing you with flexibility.
Who can apply and what criteria does my home have to meet to qualify for a Heartland Bank Reverse Mortgage?
Anyone aged 60 or over who owns their own home can apply for a Heartland Bank Reverse Mortgage.

Property criteria
Your property must be residential, of conventional construction and in good repair. It must also meet our minimum property criteria, including valuation, size and location.

The property should be mortgage-free, or if there is a mortgage outstanding, it must be repaid with your Heartland Bank Reverse Mortgage.
How do you value my home?
To allow us to establish the value of your home, and therefore calculate how much you could be eligible to borrow, we will need to assess the value and condition of the property. We will arrange for a registered valuer to visit your home to assess its value. A copy of this assessment will be provided to you.
Will I still own my home?
Yes, you will always own your home and continue to live in it as long as you wish, while benefiting from any capital growth. Only when you move permanently from your home (or in the case of joint applicants, when both of you have moved permanently from your home) will the loan be repayable.

Heartland Bank understands that some customers (who we call nominated borrowers) may not be the sole owners of the home they live in. In these circumstances Heartland Bank will need to be contacted to ensure the application can proceed.
What can I do with my money?
Funds can be used for almost anything that helps you live a more comfortable retirement.

Many people use the loan to fund home repairs or improvements, repay debt, travel to visit family, pay for medical procedures, upgrade to a more reliable car, assist with in-home care, or a host of other uses to make life easier and more comfortable. Fundamentally, a Heartland Bank Reverse Mortgage is designed to help you live a better retirement.
Do I still need to consider my future needs?
Yes. At Heartland Bank we want you to make an informed decision, taking into consideration your future needs and objectives, as taking out a reverse mortgage may affect equity available later down the track. This includes considering aged care costs and how you intend to pay for them, along with your desire to leave an inheritance.

You should also consider any other options which may be available, such as downsizing, to ensure a reverse mortgage is right for you.

Heartland Bank assists you in doing this as part of our thorough application process.
What if I move house?
If you move into another house, you can apply to transfer your Heartland Bank Reverse Mortgage to your new home. If we agree to transfer the loan, fees will apply and will be added to your loan balance.
Can I rent out the security?
If the loan is initially taken out over your investment property, you are able to rent out your home, subject to the lease meeting Heartland Bank’s requirements.

If you wish to lease out your owner-occupied home, please contact Heartland Bank to discuss your situation. This is not always possible and is based on your specific circumstances and loan conditions.
Can I increase my loan amount?
When your cash reserve (if any) is fully drawn you can apply to increase your total loan amount. Increases are based on the age of the youngest person, the current property value and the total loan balance at the time of application.

Fees will apply and a new valuation of your home will be required. This will be confirmed at the time of application. You will also be required to obtain independent legal advice on the further advance loan.
Can I take out a Heartland Bank Reverse Mortgage on a property other than my own?
Yes. You can take out a Heartland Bank Secondary Property Loan. This type of loan comes with all the benefits of a Heartland Bank Reverse Mortgage, but with the added flexibility of using your residential investment property or holiday home as the security.

Please note that under a Heartland Bank Secondary Property Loan, the loan balance will become due and payable when the security property (in this case the secondary property) is sold or the last nominated borrower no longer resides in their owner-occupied home (or primary residence). This could be due to moving house, moving into a retirement village, aged care or passing away.
Can I use a Heartland Bank Reverse Mortgage to pay for aged care?
Yes, you can use a reverse mortgage to pay for aged care.

If a member of a couple is still residing in their home (security property), a Heartland Bank Reverse Mortgage can be used to pay for their partner’s entry into care.

Our Aged Care Option also allows for a higher LVR, with examples as follows:
Age of youngest
borrower		 Maximum % of home's
value available
60 20%
65 25%
70 30%
75 35%
80 40%
85 45%
90 50%
Our Aged Care Guide provides more detail regarding Heartland's reverse mortgage for aged care finance offerings.

Issues to consider in deciding if it is right for you

How will the loan affect your future choices?
When thinking about a reverse mortgage, you need to consider both your current and future needs. The more you borrow now, and the younger you are when you borrow it, the less equity you will have in your home to pay for your needs as you age. How might your health and living situation have changed in 10, 20 or 30 years’ time? If you use up too much of your equity too soon, you may not be able to afford future costs such as high medical expenses, the need to move into aged care accommodation, essential home maintenance or the purchase of a motor vehicle.
How much will you have to repay?
You can only estimate how much you will end up owing. The exact amount to repay will depend on how much money you borrow, the interest rate, how long you have the loan, and the value of your home when it is sold.
Will I owe more than what my home is worth?
By law, lenders must guarantee that when your reverse mortgage contract ends and your home is sold to repay the loan, you will not have to pay back more than the value of your home. This is known as a “no negative equity guarantee”. There are a few exceptions to this rule.
Will other people living in your home be affected?
Generally, reverse mortgages have to be repaid when you move out (for example, into aged care) or die. If you are the homeowner and someone else is living with you, the other resident may have to move out when the loan has to be repaid. Some reverse mortgage contracts may protect the rights of the other resident by allowing them to stay in the home. If you want this option, make sure you discuss this with your lender before taking out a reverse mortgage.
Will you be able to leave your children an inheritance?
A reverse mortgage will reduce the amount of equity in your home that you can leave to your children or other beneficiaries. You may wish to discuss this with your family.
Are there alternatives more appropriate for you?
There may be alternatives to taking out a reverse mortgage that may be more suitable for your needs. These can include downsizing, making arrangements with other family members, accessing government benefits, loans (such as the pension loans scheme) using savings, selling other assets, or home reversion schemes.
Will you incur costs for repaying the loan early?
Break fees may apply when a fixed-interest reverse mortgage is ended early. Break fees can be very high. Depending on the size of the loan and how long you have had it, these fees may be thousands of dollars.
Will your pension change?
A reverse mortgage may affect your pension or other Government entitlements. You can contact the Department of Human Services (Centrelink) on 132 300 to talk to a Financial Information Service Officer about how your pension may be affected.

Questions about Reverse Mortgages Internet Banking and Heartland Bank Reverse Mortgages app

Is Reverse Mortgages Internet Banking only accessible on a computer?
Reverse Mortgages Internet Banking is accessible across all supported web browsers on your desktop, laptop, tablet and mobile devices. If you prefer to use your mobile phone, you can download the Heartland Bank Reverse Mortgages app, which offers the same features and capabilities.
What web browsers support Reverse Mortgages Internet Banking?
Reverse Mortgages Internet Banking can be accessed from the following browsers across your digital devices: Safari 10.1+, Microsoft Edge 79+, Google Chrome 57+, Mozilla Firefox 52+ and Safari on iOS 10.3+.
Is Reverse Mortgages Internet Banking an app?
Reverse Mortgages Internet Banking is accessible via browser. However, the Heartland Bank Reverse Mortgages app offers the same features and capabilities.
How secure is Reverse Mortgages Internet Banking and the Heartland Bank Reverse Mortgages app?
There are a number of measures in place to help keep your account and data secure.
  • Sensitive data travelling across the internet between your device and our systems is encrypted.
  • We conduct security assessments to ensure that potential vulnerabilities are identified and addressed. These assessments are carried out by a third party that specialises in information security.
  • The session will time-out if it is left running with no activity.
How do I log in?
If you’ve previously used Reverse Mortgages Internet Banking, your login details will also work on the Heartland Bank Reverse Mortgages app. If you don’t have login details yet, get in touch with our team by calling us on 1300 889 338. Once you have your login details, head to the Heartland Bank Reverse Mortgages app, log in using the temporary password provided and you are ready to go!
Will the Heartland Bank Reverse Mortgages app work on my device?
The Heartland Bank Reverse Mortgages app works on:

Vulnerable customers

We ensure our staff have an awareness of potential vulnerability in our customers and that they take steps to provide the appropriate support.

Support services
Financial abuse
If a customer advises of abuse, they will be referred to the national Elder abuse phone line: 1800 ELDERHelp (1800 353 374).

Memory loss
If a family member or friend believes that the customer is experiencing memory loss or confusion, or the customer has asked for help, they will be referred to Dementia Australia 1800 100 500.

Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. They may also be referred to the National Debt Helpline 1800 007 007. Further information on financial assistance can be found on the financial tools page of our website.

Crisis support
If a customer requires crisis or emotional support, they are referred to Lifeline’s 24-hour support line 13 11 14.
Caring for customers experiencing vulnerability
We are deeply committed to providing extra care for our customers who may be experiencing vulnerability. We understand that individual circumstances may increase the need for support and can change over time or due to specific situations. Although vulnerability can affect anyone, it might be heightened by various factors, such as:
  • Age
  • Disability
  • Mental health conditions
  • Cognitive impairments
  • Serious medical conditions
  • Elder abuse
  • Family and/or domestic violence
  • Financial abuse
  • Financial difficulty
  • Literacy and/or language barriers, including limited English proficiency
  • Cultural background
  • Aboriginal or Torres Strait Islander identity
  • Living in remote areas
  • Incarceration or recent release from incarceration

We encourage you to share your circumstances with us, allowing us to work collaboratively to tailor your banking services accordingly. Without this information, we may not fully understand your needs.

If you require additional support and inform us of your personal or financial situation, we promise to partner with you to find the best way for you to manage your banking.

For those experiencing vulnerability, we will:
  • Respect your need for privacy and confidentiality
  • Offer appropriate guidance and referrals to help you sustain or regain control of your finances
  • When suitable, simplify the process of appointing a third-party representative, such as a lawyer or financial counsellor, to assist you in managing your banking relationship with us.

Elder abuse

We ensure our staff have an awareness of elder financial abuse, including undue influence and unconscionable conduct, and take steps to both detect and prevent its occurrence where possible.

Support services
Financial abuse
If a customer advises of abuse, they will be referred to the national Elder abuse phone line: 1800 ELDERHelp (1800 353 374).

Memory loss
If a family member or friend believes that the customer is experiencing memory loss or confusion, or the customer has asked for help, they will be referred to Dementia Australia 1800 100 500.

Hardship
If a customer is experiencing financial difficulty, Heartland Bank will follow its hardship procedures. They may also be referred to the National Debt Helpline 1800 007 007. Further information on financial assistance can be found on the financial tools page of our website.

Crisis support
If a customer requires crisis or emotional support, they are referred to Lifeline’s 24-hour support line 13 11 14.

Power of attorney guide

Subject to Heartland’s assessment and approval, our loans may be signed for by a power of attorney (POA), or through a guardianship or administration order (in either case, this is to act as an ‘agent’). They also may, after settlement, commence acting on behalf of a customer. However, Heartland Bank takes extra care when assessing and approving loans under power of attorney to ensure that they are suitable.

This guide does not constitute legal or professional advice. If you require assistance you should obtain independent legal advice.

What is a power of attorney?
A power of attorney is a legal document that gives someone (called an ‘attorney’) the power to act on behalf of the person who grants that power (the ‘donor’). It allows the attorney to sign or act for the donor, subject to any conditions or limitations in the document.

There are two types of powers of attorney that are used for managing a donor’s interests (including finances): general and enduring.
General power of attorney?
This operates for a particular period of time or purpose. It is generally used to put a temporary formal arrangement for a specific purpose in place, or a period of time (for example, if you go overseas for a year a family member may take care of your bills). Unless specifically noted, it will not be valid for a lack of physical or mental capacity.
Enduring power of attorney
An enduring power of attorney can commence once the attorney has accepted his/her appointment or at a later time specified. This type of authority remains valid even when the customer may no longer be capable of making their own decisions (i.e. lack of capacity). It is possible for an enduring power of attorney to specifically state that it is to take effect when capacity is lost (evidence of this may be required), or to be triggered by another event.
Heartland Bank applications
Heartland Bank will only allow applications signed under POA, guardianship or administration orders when:
  • customer lacks mental capacity or cannot physically sign for themselves; and
  • funds will benefit the nominated borrower.
Each party to the loan must be onboarded and vetted, this means we will need to confirm details regarding the customer agent, including their identification.

The loan purpose will always be assessed. Funds can only be paid into account in the name of the nominated borrower, to their lawyer, or to a debtor on their behalf. Gifting will not be accepted as a loan purpose for a loan signed for by a customer agent.
Conditions
Heartland Bank will also require a letter of comfort from the lawyer providing the independent legal advice. This must confirm:
  • the purpose of the loan;
  • the reason why they cannot sign; and
  • the power has not been revoked
Depending on the document, Heartland’s legal advisers may be required to review its terms prior to loan document issue. Depending on jurisdiction, it will require registration at the relevant Land Titles Office and/or an originally certified copy of the document will be required prior to settlement.
Capacity
Heartland Bank only allows a POA to sign when there is a lack of capacity, this includes when a customer is physically incapable of signing.

Under an enduring power of attorney, it is most likely to be the attorney who will decide when the donor loses capacity. For this reason, Heartland Bank requires the lawyer completing independent legal advice to certify that the customer cannot sign in our letter of comfort.

However, only a medical practitioner can give a professional opinion on whether someone has lost capacity to make their own decisions. In some cases, the power of attorney may only come into effect if evidence is provided by a medical practitioner. If in doubt (of capacity or lack thereof) Heartland Bank’s process is to request a medical certificate.
What is joint and several?
When setting up a POA, more than one can be appointed. When there is more than one, the designation can be joint, or jointly and severally.
  • jointly – means that all must agree to decisions and every document must be signed by all POA’s listed.
  • jointly and severally – means that any POA listed can make a decision and sign documents, either together (jointly) or without the others as an individual (severally).
  • if a POA has passed away, a certified death certificate will be required.
Even if a POA is jointly and severally, Heartland Bank will require confirmation that all POA’s are aware of the application and, if not, why.
POA conditions
Heartland Bank will review the POA carefully to determine:
  • whether it is general or enduring;
  • that it is for financial matters;
  • the commencement date and duration of appointment;
  • if general, if it covers loss of capacity;
  • that it has been formally signed, accepted and witnessed; and
  • any specific conditions or restrictions (i.e. does not include sale of property).
Heartland Bank will only allow a POA which includes financial purposes, and allows the security property transaction.
POA obligations
An attorney must:
  • act in the donor’s best interests, except as otherwise noted specifically in the POA;
  • make the same decision that the donor would make;
  • keep accurate records of interactions, transactions, and keep these separated from their own assets; and
  • avoid any conflict of interest.
An attorney must not exceed the POA document’s authority, if they do so they may be liable for any damages suffered by the donor.
Guardianship & administration orders
If someone is unable to manage their affairs due to lack of capacity from a decision-making disability (dementia, mental illness, intellectual disability) and does not have a valid POA, a court or tribunal may legally appoint an administrator or guardian to make decisions for them through an administration or guardianship order. The order can be for a set period of time.

Guardianship
A guardianship involves making personal, medical and lifestyle decisions about a person’s work, living arrangements or medical care and treatment.

Administration
Administration is related to financial decision making regarding certain financial decisions, such as purchasing or selling property or assets, paying debts and investing money.

Differences between jurisdictions
  • guardians in QLD, SA, TAS, VIC, NSW and WA, cannot make financial decisions for the person they represent.
  • guardians in ACT and NT can make financial decisions.
There can be terms in the order document, which Heartland Bank will review.

Obligations
An administrator must do the following:
  • protect the represented person from abuse, exploitation and neglect;
  • make decisions which are in the represented person’s best interests;
  • take into account the represented person’s wishes; and
  • encourage the represented person to make their own decisions, where possible.
Post settlement
If we are advised by a power of attorney, guardian or administrator post settlement that they are now acting and signing on behalf of a customer, they must be vetted, legally confirmed and onboarded just like a new customer.

If you are looking to be added to a loan post settlement, please contact Heartland’s Customer Care team for our customer agent application.
Elder abuse
Heartland Bank staff are trained to have an awareness of elder financial abuse, including undue influence and unconscionable conduct, and take steps to both detect and prevent its occurrence where possible.

New customer guide

Thank you for choosing Heartland Bank as your reverse mortgage provider. This guide may answer some of the questions you have following the commencement of your Heartland Bank loan.

Please do not hesitate to contact our friendly team on 1300 889 338 if you require assistance at any time. We are here to help you.

When do I receive statements?
In January and July each year (regardless of your loan’s settlement date). The statement details the transactions on your loan over the previous six-month period, including interest, any applicable fees and charges, and whether you have any additional funds available in cash reserve or redraw.
What is the annual questionnaire?
Completion of Heartland’s annual questionnaire is required under your loan agreement. Its purpose is to confirm that your rates and insurance are up to date, and that the property is being maintained.

You will receive the questionnaire on the anniversary of your loan commencement date, every year. It must be completed, signed and returned within a month.
How do I apply for a cash reserve?
To apply for your cash reserve, you need to complete a cash reserve application form, or you can apply through Reverse Mortgages Internet Banking. It is subject to approval and a loan agreement. Please contact our friendly team to obtain the form or your login details. A cash reserve fee applies – please refer to Heartland Bank's current fee schedule on our website.
Do I have access to redraw?
If you have available redraw, this will show on your loan statement. To access redraw, you will need to complete a request form. Please contact our friendly team to obtain this form. A drawdown fee applies - refer Heartland's current fee schedule on our website.
How is interest calculated?
Interest is calculated on the daily balance, and added to the loan monthly. At the end of the term of your loan, when you move permanently from your home, the total interest charged, together with the principle will be payable. See our interest rate page on our website for more information on our rates.
Am I required to make loan repayments
No. There is no requirement to make any loan repayment until the end of the loan. Heartland Bank does offer the flexibility to repay the loan partially, or in full, at any time, without paying penalty charges. For more details on loan repayments, please take a look at our handy guide.
How can I make voluntary repayments?
You can make repayments via internet banking. You can also set up a regular direct payment with your bank. Please contact us to confirm our account details.

Please be sure to include your loan number and your last name in the transaction description. This is essential, as it enables us to correctly identify your loan repayment.
When is my loan repayable?
A Standard Reverse Mortgage or Secondary Property Loan is usually repayable within 12 months of when the last nominated borrower moves permanently from the owner-occupied home (or primary residence), or upon sale of the security property.

An Aged Care Loan is repayable 5 years from the commencement date, or within 12 months of the last nominated borrower ceasing to reside in aged care, whichever is the earlier.
What happens if my spouse passes away?
We understand that this can be a stressful time. While you will need to notify Heartland Bank and provide us with a certified copy of the applicable death certificate, provided you are a nominated borrower, you can live in your home for as long as you choose.
If I move home, am I able to take my loan with me?
If you move into another house, you can apply to transfer your Heartland Bank Reverse Mortgage to your new home. The assessment of this application will be based on the age of the youngest person applying, the new property and its value, and the current loan amount outstanding.

Please contact us to discuss whether taking your loan with you could be a solution, and your eligibility. Fees and charges apply.
Am I able to take out an additional loan?
When your cash reserve (if any) is fully drawn, you can apply to increase your total loan amount. Increases are based on our current loan approval criteria, the age of the youngest person applying, the current property value, and the total loan balance at the time of application.

A valuation of the security property may be required. If you wish to take out a further loan, please contact our friendly team to discuss your situation and if there could be possible funds available. Fees and charges apply.
I am moving into aged care, can I keep my reverse mortgage loan?
Moving in to aged care can be an expensive and stressful process. There are often a number of things to consider, including how to pay for the care and if you are going to sell or keep your property.

Though the total loan is usually repayable when you move permanently from your home, you may be able to vary your reverse mortgage to our Aged Care Option.

More details regarding our Aged Care Option can be found on our website. Please contact us to discuss whether an Aged Care Option could be a solution, the process, fees, credit criteria and your eligibility.

Borrower protection

The Heartland Bank Reverse Mortgage is designed to protect borrowers.

We recognise the trust customers place in us when taking out a reverse mortgage, and we take this duty of care seriously. We’ve 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.

Heartland Bank promises

  • Lifetime occupancy
    You can live in your home for as long as you choose and retain ownership of your home at all times, benefiting from any increase in property value.
  • No negative equity guarantee
    The amount required to repay the loan will never exceed the net sale proceeds of the property.
  • Loan repayments
    You are not required to make any loan repayments until the end of the loan, but you are free to do so at any time with no penalty (discharge fee applies).
Subject to complying with the terms and conditions of the Heartland Bank Reverse Mortgage, you will not owe more than the net sale proceeds of your home and you can keep your home for as long as you choose.
Equity Protection Option
Under the Equity Protection Option, you may choose to protect a percentage of the eventual net sale proceeds of your home (up to 50%). When your loan is repaid, you or your estate are guaranteed to receive that protected percentage, even if the balance on your loan is higher than this amount.

For example: You choose to protect 20% of your home, and the net sale proceeds when you sell are $500,000. As long as you meet your obligations under the loan, the maximum that you or your estate would be required to pay us would be $400,000.

Loan approval, terms and conditions, fees and charges apply. Please be aware that choosing the Equity Protection Option will reduce the loan amount available by the percentage selected.
Independent legal advice
To take out a reverse mortgage loan with us, we require that you seek independent legal advice.
Independent financial advice
We recommend customers discuss their requirements and objectives with a financial adviser, and in some cases we make this mandatory. In addition, customers are encouraged to speak with Centrelink to ensure there is no impact on government entitlements.
Family involvement
Whether to involve family is up to our individual customers, however Heartland Bank actively encourages it and requires customers to confirm that they have considered this key part of the application process.
Loan projection
To assist you in making an informed decision, ASIC have developed a calculator to illustrate how much equity could remain in your property under different scenarios. Heartland Bank provides this projection to all customers, and anyone can go onto ASIC’s MoneySmart Reverse Mortgage Calculator to complete a calculation. Alternatively, one of our team can complete a tailored one for you.
Future need consideration
When deciding to take out a reverse mortgage, you’ll need to think about your future needs, like ongoing living expenses, aged care costs, medical expenses and plans to leave funds to beneficiaries. A big factor in these considerations is longevity risk – the risk of outliving financial resources.
30 day cooling off period
If you take out a loan with us and have a change of heart, Heartland’s 30 day cooling off period allows you to cancel your reverse mortgage within 30 days of settlement and repay your loan at no additional cost.

Heartland Bank will refund the settlement fee, interest and the standard cost of a valuation. The only costs you may incur are any government charges, and your independent legal advice on the loan agreement.

Find out more on our awards and partnerships page.

Get in touch

If you'd like to find out more about a Heartland Bank Reverse Mortgage, request a guide or call us on 1300 889 338.

Contact us