Reverse Mortgage Calculator

Heartland Bank is the dominant NZ provider. You borrow against your home equity (up to 20-50% LVR depending on age — older = higher LVR). No regular repayments — interest compounds onto the balance, ~9.25% p.a. Repaid when the home is sold, you move into care, or pass away. Heartland's "No Negative Guarantee" means the debt can never exceed the home value. Source: Heartland Bank.

For some retirees yes — particularly if you're asset-rich but cash-poor and want to age in your home. Downsides: the compounding interest erodes inheritance rapidly (a $100k loan at 9.25% becomes $245k after 10 years). Consider alternatives first: downsize, equity release products like Lifetime Home, or KiwiSaver withdrawal. Get independent financial advice. Source: Sorted NZ + MoneyHub.

A reverse mortgage reduces the equity passed to your estate. Example: a $100,000 reverse mortgage at 9.25% compounding over 15 years grows to ~$381,000 debt. If your home is worth $900,000 then and your beneficiaries inherit it, they'd receive $519,000 after paying off the debt (instead of $900,000). Heartland's 'No Negative Equity Guarantee' (NNG) means the debt can never exceed the home value — your estate can never owe extra. To preserve more inheritance, drawdown smaller amounts or use the income stream option (vs lump sum). Talk to your beneficiaries before signing — many family disputes arise from undisclosed reverse mortgages. Source: Heartland Bank + MoneyHub.

Yes — consider these first. (1) Downsize: sell the family home, buy something smaller, pocket the difference. Often the cheapest option. (2) Lifetime Home Equity Release — a buy-back scheme where Lifetime buys 35% of your home, you live there for life, kids inherit 65%. Cheaper than reverse mortgage long-term. (3) Granny flat or boarder rental — extra income without debt. (4) KiwiSaver withdrawal at 65 — if you have $200k+ in KS, you may not need the equity release. (5) NZ Super + Accommodation Supplement + Rates Rebate — maximise government support first. (6) Family loan — kids advance an inheritance with documented agreement. Get independent financial and legal advice before any decision. Source: Sorted NZ retirement guide.