tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, September 24th, 9:53PM

Mortgages

rss
Latest Headlines

Heartland reverse mortgage book grows 10%

Heartland Group's New Zealand reverse mortgage book grew by nearly 10% in the last financial year, as older Kiwis tap into home equity to boost their retirement income. 

Thursday, September 17th 2020, 12:19PM 1 Comment

Chris Flood

Heartland's reverse mortgage receivables jumped 9.7%, or $49.6 million, to $559.9 million. The group, which owns Heartland Bank, said the rise was driven by increased brand awareness and advertising. 

Chris Flood, chief executive of Heartland Bank, told TMM Online that the "vast majority" of reverse mortgages were sold to direct customers. In Australia, brokers provide the bulk of reverse mortgage business to the bank.

Flood believes more Kiwis want to bolster retirement income through equity release products, as people look to shore up their finances through the Covid-19 pandemic. 

"People want to retire in their own home in comfort, especially in this Covid environment," Flood said. He said borrowers typically took out reverse mortgages worth $50,000, for home improvements, new cars or medical payments. 

Heartland's Australian reverse mortgage goes from strength-to-strength. Australian reverse mortgage receivables increased by $149.1 million to $957.5 million, a rise of 18.4%.

Flood credited the strong Aussie broker market for the rise, and a shrinking pool of product providers following the Royal Commission. 

The Heartland boss is hopeful the reverse mortgage space will continue to grow in NZ, offering people more choice about their retirement lifestyle. 

"Boomers are starting to retire, and many are asset-rich and cash-poor," Flood said. "The lower interest rate environment might make people want to consider a reverse mortgage. The product can achieve fantastic outcomes, enabling people to live a better retirement lifestyle than they might have otherwise." 

Heartland Bank launched a 2.95% digital mortgage last year, receiving $50 million worth of demand for the direct product. 

The lender could re-launch the mortgage, Flood says, but Heartland is keeping an eye on where rates will settle in the coming months, with further downward pressure expected.

Flood's comments came as Heartland Group announced its full-year results today. Group profit fell from $73.6 million to $72 million in the year to June. 

Tags: equity release Heartland retirement reverse mortgages

« Kiwibank just over a month away from entering adviser marketRBNZ to talk up negative OCR: preview survey »

Special Offers

Comments from our readers

On 18 September 2020 at 12:03 pm Maxwell K said:
A most satisfactory result.
A most underrated stock in my view.
As a shareholder I am not surprised at the result given the quality of their CEO and management team.
Not your usual bank but one that are very quick on their feet when it comes to introducing new technology, identifying opportunities and know how to look after their customers. As Buffett says " it is only when the tide goes out you can see who has been swimming in the nude"
Heartland, thanks for keeping your bathing suit on during these unpredictable times.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Mortgage Rates Newsletter

Daily Weekly

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 2.55 2.69 2.79
ANZ 4.44 3.15 3.25 3.39
ANZ Special - 2.55 2.69 2.79
ASB Bank 4.45 2.55 2.69 2.79
Bluestone 3.49 3.49 3.49 3.49
BNZ - Classic - 2.55 2.69 2.79
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.15 3.29 3.39
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
Lender Flt 1yr 2yr 3yr
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 3.85 3.95 -
HSBC Premier 4.49 2.45 2.60 2.65
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - - - -
ICBC 3.69 ▼2.45 2.65 2.79
Kainga Ora 4.43 2.93 3.07 3.24
Kiwibank 3.40 3.30 3.54 3.54
Kiwibank - Offset 3.40 - - -
Kiwibank Special 3.40 2.55 2.79 2.79
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Resimac 3.39 3.35 2.99 3.35
SBS Bank 4.54 3.05 3.19 3.25
Lender Flt 1yr 2yr 3yr
SBS Bank Special - 2.55 2.69 2.75
The Co-operative Bank - Owner Occ 4.40 2.55 2.69 2.79
The Co-operative Bank - Standard 4.40 3.05 3.19 3.29
TSB Bank 5.34 3.29 3.45 3.59
TSB Special 4.54 2.49 2.65 2.79
Wairarapa Building Society 4.99 3.55 3.49 -
Westpac 4.59 3.15 3.29 3.39
Westpac - Offset 4.59 - - -
Westpac Special - 2.55 2.69 2.79
Median 4.55 3.00 3.13 3.02

Last updated: 21 September 2020 10:48am

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com