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'll arrange for someone to 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.
Is a reverse mortgage right for you?
Seven quick questions, about 2 minutes. 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.
This page is general information only, not advice. Summit Mortgages is a referral service. If you leave your details, we pass them to a reverse mortgage lender, such as Heartland Bank or SBS Bank, who will contact you. We may receive a commission for the introduction. It doesn't change what you pay.
Could it fit your situation?
Often a good fit when
- 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. Someone will be in touch at the time you choose.
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.
- Which lenders offer reverse mortgages?
- Heartland Bank and SBS Bank both offer them in New Zealand. Get in touch and someone will talk it through with you.
- 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 the reverse mortgage guide on Online Home Loans.