Could reverse mortgages assist your clients?
IN Partnership with
Australians can’t always rely on the aged pension and super to ensure a comfortable retirement, but Heartland Finance provides an effective solution to releasing equity in their homes – reverse mortgages
More
AS AUSTRALIA'S population ages and more people enter retirement with higher debt levels, reverse mortgages offer additional financial certainty for those entering their golden years.
The retirement finance sector has been slated to triple in the next 10 years. Heartland Finance has helped over 22,000 Australians access the equity in their homes to fund a comfortable retirement with its Heartland Reverse Mortgage.
Head of operations, risk and compliance Sharon Yardley says more seniors are retiring with higher indebtedness, driven by a higher cost of living and lower levels of savings.
“This, combined with stringent lending obligations from lenders and financiers providing traditional mortgages, can make it more difficult and complex for people aged 60 and over to secure finance in later years,” she says.
Yardley says people in this demographic may still need to consolidate debt, complete home improvements or upgrade their car, or may just want to live comfortably, which the age pension alone cannot always facilitate.
“Reverse mortgages allow seniors to release and access their home equity, with no regular loan repayments until the end of [the mortgage] term, all while living in and continuing to own 100% of their property and enjoying the benefits of the community, social networks and family memories it provides.”
Heartland Finance is part of Heartland Group Holdings Limited (Heartland Group), a financial services group with operations in both Australia and New Zealand. Heartland has a long history with roots stretching back to 1875, and is listed on the Australian and New Zealand stock exchanges (under the ticker HGH).
Heartland provides finance for retirement through Heartland Reverse Mortgages and the Heartland Well-Life Loan, and business loans through Open for Business.
Heartland Reverse Mortgages is Australia’s leading reverse mortgage provider. Since 2004, Heartland has helped more than 22,000 Australian seniors live a more comfortable retirement by releasing equity from their homes.
Find out more
“Reverse mortgages allow seniors to release and access their home equity, with no regular loan repayments until the end of [the mortgage] term, all while living in and continuing to own 100% of their property”
Sharon Yardley,
Heartland Finance
“We provide support for our brokers, including access to a suitably qualified and focused broker support team, ongoing newsletters with industry and company updates, and regular training webinars”
Sharon Yardley,
Heartland Finance
Share
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
Copyright © 1996-2022 Key Media, Inc.
Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
Copyright © 1996-2022 Key Media, Inc.
Companies
People
Newsletter
About us
Authors
Privacy Policy
Conditions of Use
Contact Us
RSS
Debt consolidation and home improvements are the most common loan purposes, with over 40% of Heartland Reverse Mortgage customers taking out loans in one or both these categories, Yardley says.
“A reverse mortgage can be used for almost anything to make retirement more comfortable. This could include things such as a new car, travel, consolidating debt such as a credit card or outstanding mortgage, home improvements, and even in-home support and residential aged care. You can even use a reverse mortgage for gifting purposes to assist your family.”
Yardley says Heartland takes its duty of care seriously – all loan purposes are subject to a suitability test to ensure they’re in the best interests of the borrower. The company also has safeguards to detect and prevent financial elder abuse.
“We are empathetic to our customers’ needs and understand that there is the potential for them to be vulnerable and become victims of elder abuse.”
Heartland: the trusted experts
Operating since 2004, the specialist non-bank lender understands the needs of senior Australians and offers an award-winning product.
“Our goal is to provide home equity access to Australian seniors, allowing them to live a more comfortable retirement with independence and dignity,” says Yardley.
“This looks different for every one of our customers, which is why we provide a competitive and flexible product and dedicated customer service to our broker network.”
Heartland focuses on providing specialist products to brokers whose older customers are seeking finance, as well as on increasing awareness of retirement finance.
“We continue to deliver a market-leading product and customer-focused service at a fair price, have knowledgeable, committed and professional staff, and are continuing to increase our engagement with brokers, targeted marketing and communications.”
Growth opportunities for brokers
Yardley says brokers who have a deeper understanding of home equity release options, and how they can contribute to greater financial independence, can help their clients unlock their equity and remain in their homes for as long as they choose.
“With our ageing population increasing and living costs continuing to rise, equity release is becoming an increasingly popular funding option for retirees.”
In November 2020, Heartland partnered with RMIT University to research financing ageing in place – seniors being able to afford to age in their current homes. This
revealed that almost 90% of senior Australians want to remain in their home for as long as they can, but limited super and higher living costs are restricting their ability to do so.
Helping brokers access reverse mortgages
Yardley says understanding the supporting documentation needed for reverse mortgages is important.
“We provide support for our brokers, including access to a suitably qualified and focused broker support team, ongoing newsletters with industry and company updates, and training webinars.”
Heartland’s assessment process is designed to achieve the best customer outcome and provide specialised support to brokers. Supporting documentation can be different to a forward mortgage, and Heartland has checklists and processes in place to clearly communicate this to brokers.
Heartland also operates a dedicated online broker portal containing all the information required for lodging reverse mortgage applications, along with marketing and educational resources.
For brokers wanting to diversify, considering the future needs of clients is key to lining up a reverse mortgage, “not only in helping them live a comfortable retirement by releasing equity, but also in determining the amount of equity they will also require for future needs”.
Over the past 18 months, Heartland has also joined the panels of four of Australia’s top aggregators, providing on-panel access to reverse mortgages.
Aged care funding options
The latest Intergenerational Report, released by the Australian government in June 2021, projects that, by 2060, 23% of the population will be aged over 65.
“Aged care spending is projected to nearly double as a share of the economy by 2060–61.”
While selling the family home seems like the only option for funding residential aged care, Yardley says in many cases a reverse mortgage can fund those costs.
Heartland’s Aged Care Option is designed to assist with paying aged care facility fees such as the Refundable Accommodation Deposit, the Daily Accommodation Payment or other ongoing costs.
The other option is home care as the majority of seniors continue to “live independently, with some support, in their own homes with the help of government-approved home care providers”.
“A Heartland Reverse Mortgage could enable customers to age in place by accessing the funds required for in-home care without having to sell,” Yardley says.
IMPORTANT NOTICE: Applications are subject to loan approval criteria. Terms, conditions, fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780/Australian Credit Licence No. 386781). Subject to complying with the terms and conditions of the Heartland Reverse Mortgage, clients will not owe more than the net sale proceeds of their home and can keep it for as long as they choose.
IMPORTANT NOTICE: Applications are subject to loan approval criteria. Terms, conditions, fees and charges apply. Credit provided by ASF Custodians Pty Ltd (ACN 106 822 780/Australian Credit Licence No. 386781). Subject to complying with the terms and conditions of the Heartland Reverse Mortgage, clients will not owe more than the net sale proceeds of their home and can keep it for as long as they choose.
Reverse mortgages are a solution to financing retirement
Having access to financial products designed for retirees, to fit with their lifestyle, should be considered as part of any retirement plan
Brokers are ideally placed to help older customers, or clients who have parents who need to access money to help them in retirement, by becoming reverse mortgage accredited
Heartland is a specialist in reverse mortgages, and brokers provide the lender with distribution across the country
How mortgage brokers can help
Reverse mortgages are
a solution to financing retirement
Having access to financial products designed for retirees, to fit with their lifestyle, should be considered as part of any retirement plan
Brokers are ideally placed to help older customers, or clients who have parents who need to access money to help them in retirement, by becoming reverse mortgage accredited
Heartland is a specialist in reverse mortgages, and brokers provide the lender with distribution across the country
How mortgage brokers can help
What is a reverse mortgage?
Home equity is the value of the borrower's home, minus any remaining debt. If they have paid off their mortgage, they have 100% home equity
Reverse mortgages allow Australians aged 60 or older to borrow a percentage of their home equity
The borrower repays the debt when they move out of their home, usually when they sell the property, move into aged care, or pass away
The interest
is capitalised,
and there are set-up fees
What is a reverse mortgage?
Home equity is the value of the borrower's home, minus any remaining debt. If they have paid off their mortgage, they have 100% home equity
Reverse mortgages allow Australians aged 60 or older to borrow a percentage of their home equity
The borrower repays the debt when they move out of their home, usually when they sell the property, move into aged care, or pass away
The interest
is capitalised,
and there are set-up fees
What is a reverse mortgage?
The borrower repays the debt when they move out of their home, usually when they sell the property, move into aged care, or pass away
The interest
is capitalised,
and there are set-up fees
Home equity is the value of the borrower's home, minus any remaining debt. If they have paid off their mortgage, they have 100% home equity
Reverse mortgages allow Australians aged 60 or older to borrow a percentage of their home equity
More
Australians can’t always rely on the aged pension and super to ensure a comfortable retirement, but Heartland Finance provides an effective solution to releasing equity in their homes – reverse mortgages
Could reverse mortgages assist
your clients?
IN Partnership with
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK
News
MORTGAGE INDUSTRY
BEST IN MORTGAGE
SPECIALTY
TV
Resources
US
CA
AU
NZ
UK
US
CA
AU
NZ
UK
News
Mortgage Industry
Best in Mortgage
Specialty
TV
Resources