Heartland vs SBS Reverse Mortgage (New Zealand)
New Zealand’s two main reverse mortgage lenders are Heartland Bank and SBS Bank (SBS Unwind). Both let you stay in your home, require no regular repayments, and include a no-negative-equity protection. The main difference is how much you can borrow: at the same age Heartland generally allows a higher percentage of your home’s value (about 20% at age 60) than SBS (about 10% at age 60). On rate, Heartland’s published rate is 7.75% p.a. and SBS Unwind’s is 7.99% p.a. — both variable and set by the lender (see dates below).
| Heartland Bank | SBS Bank | |
|---|---|---|
| Product | Heartland Reverse Mortgage | SBS Unwind Reverse Equity Mortgage |
| Minimum age | Borrowers aged over 60 (maximum two). One borrower aged 55–59 may be permitted if another borrower is over 60. | Aged 60 and above (youngest Nominated Resident's age is used). Up to two Nominated Residents can live at the property. |
| Interest rate | 7.75% per annum, variable, compounded monthly (as at 20 January 2026) | 7.99% — per annum, SBS Unwind floating interest rate (variable), effective 12 September 2025 |
| How much you can borrow | Age of youngest borrower minus 40 | Age of youngest Nominated Resident minus 50 |
| Minimum property value | $250,000 | Not published |
| No-negative-equity protection | The amount required to repay the loan will never exceed the net sale proceeds of your property. | The loan is only repaid when you sell, or when the last Nominated Resident moves out permanently or passes away. |
| Ways to receive funds | Lump sum (minimum $10,000); Monthly advance ($300+/month, up to 10 years); Cash reserve facility | Draw down as cash when you like; No required ongoing repayments (repay all or part any time) |
How much can you borrow by age?
Maximum loan as a percentage of your home’s value, by the age of the youngest borrower.
| Provider | 60 | 65 | 70 | 75 | 80 | 85 | 90+ | |
|---|---|---|---|---|---|---|---|---|
| Heartland Bank | 20% | 25% | 30% | 35% | 40% | 45% | 50% | |
| SBS Bank | 10% | 15% | 20% | 25% | 30% | 35% | 40% | 45% |
Heartland Bank
Heartland Reverse Mortgage
Residential, conventional construction, in good repair, your primary residence, mortgage-free or repayable by the loan. Location restrictions apply. Secondary Property Loans (e.g. holiday home / investment property) are available.
Extras: Equity Protection Option — protect up to 50% of the eventual net sale proceeds; 30-day cooling-off period; No early-repayment charges.
Contact: 0800 488 740
Source: Heartland Reverse Mortgage Fact Sheet (20 January 2026) — heartland.co.nz
SBS Bank
SBS Unwind Reverse Equity Mortgage
You need to own your home outright, or have a small home loan that can be repaid by drawing down the loan. Standard residential properties; lifestyle blocks, farms and retirement-village units are generally not accepted.
Extras: Up to two Nominated Residents can stay in the home over the life of the loan; Replaces the older SBS 'Advance' reverse mortgage.
Contact: 0800 727 2265
Source: SBS Unwind brochure + SBS Reverse Equity Mortgage Rates (rate effective 12 September 2025) — sbsbank.co.nz
Which one is right for you?
The better fit depends on your age, home value, location and how you want to draw the funds. This site is operated by Evolve Group Limited (FSP711891), a licensed Financial Advice Provider, whose advisers can compare both for your situation and provide recommendations in writing.
Frequently asked questions
Who offers reverse mortgages in New Zealand — Heartland or SBS?
Both do. The two main New Zealand reverse mortgage lenders are Heartland Bank (Heartland Reverse Mortgage) and SBS Bank (SBS Unwind Reverse Equity Mortgage). The major trading banks — ANZ, ASB, BNZ, Westpac and Kiwibank — do not currently offer one.
Does Heartland or SBS let you borrow more?
At the same age, Heartland generally allows a higher percentage of your home's value. Heartland uses "age of the youngest borrower minus 40" (about 20% at age 60), while SBS Unwind uses "age minus 50" (about 10% at age 60). Both increase with age.
What are the Heartland and SBS reverse mortgage interest rates?
Heartland's published reverse mortgage rate was 7.75% per annum (variable, compounded monthly) as at 20 January 2026. SBS Unwind's floating rate was 7.99% per annum, rate effective 12 September 2025. Both are variable and change over time — confirm the current rate with the lender or your adviser.
Do Heartland and SBS both have a no-negative-equity protection?
Yes. With both providers you (or your estate) will not have to repay more than the net sale proceeds of your home, provided you meet the loan terms. Both also let you stay in your home and require no regular repayments.
Sources:
- Heartland Reverse Mortgage Fact Sheet (effective 20 January 2026) — heartland.co.nz
- SBS Unwind Reverse Equity Mortgage brochure + SBS Reverse Equity Mortgage Rates (rate effective 12 September 2025) — sbsbank.co.nz / sbsbank.co.nz/rates
Rates, fees and lending criteria are set by each provider and change over time. Figures were reviewed on 2026-07-07; confirm current details directly with the provider or your Evolve adviser. Information is general only and not personalised financial advice.