Reverse mortgages
Release equity from your home and stay where you are
A reverse mortgage turns some of the value tied up in your home into money you can use, with no regular repayments. Read the essentials below, then get in touch for more information.
The essentials
- Typically for homeowners aged 60 and over.
- The older you are, the more you can typically borrow.
- No regular repayments. Interest is added to the loan.
- You keep owning and living in your home.
- Repaid when the home is sold, or the last borrower moves out for good or dies.
- Lenders require you to get independent legal advice before you sign.
How it works
- Fill in the 2 minute quiz or the short form below.
- We gather a few details about your home and what you need.
- We pass your details to a lender who can get in touch to discuss your options.
How much could you release?
The older the youngest borrower is, the bigger the share of your home's value you can typically borrow.
What people use it for
Fixing up the home
A new roof, insulation, heating or making the house easier to live in as you get older.
Topping up retirement income
Regular payments or a reserve to draw on, so day to day costs are less of a stretch.
Clearing debt
Paying off a small remaining mortgage or other debts, so there are no repayments to meet.
Helping family
Giving children or grandchildren a hand while you're around to see it.
Travel and life plans
A trip, a new car or something you've been putting off.
Health and care
Covering medical costs or in-home support so you can stay put for longer.
Could a reverse mortgage fit your plans?
The quiz has seven quick questions, takes about two minutes and gives general information only.
Question 1 of 7, about 2 minutes
How old is the youngest person who owns and lives in the home?
Lenders base eligibility and how much you can borrow on the youngest borrower.
If you leave your details, we pass them to Heartland Bank, which will get in touch about a reverse mortgage. General information only, not advice. We're a referral service and may receive a commission.
Could it fit your situation?
Might be worth a look if
- You're 60 or over and want to stay in your home
- You own your home outright, or have only a small mortgage
- Your income wouldn't easily cover regular loan repayments
- You need a set amount for something specific
Worth a closer look when
- Leaving the full value of the home to family matters a lot to you
- You expect to move in the next few years
- Your income could cover a standard top-up
- Your home is a type or in a place lenders may restrict
Things to weigh up
- Interest compounds, so the amount owed grows faster the longer the loan runs.
- There will be less equity left for later on, including for a move into care, or for your estate.
- Interest rates are usually higher than a standard home loan.
- A no negative equity promise is common, meaning you shouldn't owe more than the home sells for if you keep to the terms.
- It may affect some government support, so it's worth checking with Work and Income.
- It's a good idea to talk it through with family early.
Other ways to release money
Downsizing, a standard top-up if your income covers repayments, council rates relief, taking a boarder, subdividing, or support from family can all work too.
Get more information on equity release
Tell us a little about your home and what you need, and someone can get in touch at a time that suits you.
Equity release FAQs
- Is equity release the same as a reverse mortgage?
- In New Zealand the terms are often used for the same thing: borrowing against your home in later life without regular repayments.
- Can I get one if I still have a mortgage?
- Often yes, if it's small. The existing mortgage is usually paid off from the reverse mortgage, because it needs to be the only mortgage on the home.
- Can my partner stay in the home if I move into care?
- Lenders usually let a partner named on the loan keep living there. The loan generally isn't repaid until the last named borrower leaves.
- Who offers reverse mortgages?
- A small number of NZ lenders offer them, and each sets its own criteria. Leave your details and a broker or lender can get in touch to talk through your options.
- Is there any obligation?
- No. Getting in touch just means someone will talk it through with you. Whether to go ahead is entirely up to you.
Related
Want more detail on how the loan works? Read Online Home Loans' reverse mortgage guide.