Reverse Mortgage Providers in New Zealand
Reverse mortgages allow New Zealand homeowners aged 60+ to unlock the equity in their homes without having to move. In NZ, two banks dominate this market — SBS Bank and Heartland Bank. Each offers a slightly different approach, so it's important to compare features, eligibility, and costs before you decide.
NZ's Leading Reverse Mortgage Providers
SBS Bank
Reverse Equity Mortgage
SBS Bank's reverse mortgage (also called a reverse equity mortgage) is designed for retirees who want to access their home's value without regular repayments. It offers lifetime occupancy, a no negative equity guarantee, and flexible drawdown options.
Heartland Bank
NZ's Largest Provider
Heartland Bank's reverse mortgage is one of the most popular in NZ, helping thousands of homeowners release equity for retirement income, home upgrades, or lifestyle needs. It also includes a no negative equity guarantee and multiple drawdown options.
Reverse Mortgage Provider Comparison Table
Side-by-side comparison of key features
| Feature | Heartland Bank | |
|---|---|---|
| Minimum Age | 60 | 60 |
| No Negative Equity Guarantee | ✅ | ✅ |
| Lifetime Occupancy Guarantee | ✅ | ✅ |
| Drawdown Options | Lump sum or regular | Lump sum or regular |
| Property Types Accepted | Most freehold homes | Most freehold homes |
| Interest Rate Type | Variable | Variable |
| Early Repayment Allowed | Yes (fees may apply) | Yes (fees may apply) |
How to Choose the Right Reverse Mortgage Provider
When deciding between SBS and Heartland:
Frequently Asked Questions
Which bank offers the lowest reverse mortgage rates in NZ?
Rates can change over time, so it's best to get current quotes from both SBS and Heartland before deciding. Both banks offer competitive rates, but the exact rate you receive will depend on your age, property value, and loan amount.
Are reverse mortgages safe?
Both SBS and Heartland offer a no negative equity guarantee, meaning you'll never owe more than the value of your home. This provides important protection for you and your estate.
Can I repay early without penalties?
Both allow early repayment, though fees may apply depending on the loan structure. It's important to understand these terms before signing any agreement.