Common questions
Click below to see the answers to some of our frequently asked questions. If you're not finding the information you need, get in touch with us.
A Village Access Loan is designed for someone planning to move into a retirement village. This loan is a bridging loan. It allows you to release cash from the value of your house to help fund your entry into a retirement village without needing to sell your house first. No regular repayments are required. The loan can be repaid from the sales proceeds of your home, and any balance is then retained by you or your estate.
Your house must be a residential property built using conventional construction and in good repair. It must also meet our minimum property value criteria. Some locations and property types will have restrictions and, in some cases, may not qualify for a Heartland Village Access Loan.
If there is any mortgage debt outstanding, it must be repaid when the Heartland Village Access Loan begins - this can be done by using part of your loan.
As security for your loan, Heartland Bank must be the first and only mortgage on your property. This means you will be unable to take out another mortgage or charge on your house from a different company.
If there is any mortgage debt outstanding, it must be repaid when the Heartland Village Access Loan begins - this can be done by using part of your loan.
As security for your loan, Heartland Bank must be the first and only mortgage on your property. This means you will be unable to take out another mortgage or charge on your house from a different company.
Heartland encourages you to only borrow what you need.
You can borrow up to 50% of the value of your house to fund entry into a retirement village and, if required, repay any existing debt on the property. The minimum amount you can borrow is $5,000.
You can also access a cash reserve facility, which is designed to make it quick and easy to draw further funds, to assist with associated expenses while in a retirement village (including fees, service charges, or day-to-day living expenses). There is no interest charged on any amount of your facility that has not been drawn down. Interest will only be charged on what you use.
You can borrow up to 50% of the value of your house to fund entry into a retirement village and, if required, repay any existing debt on the property. The minimum amount you can borrow is $5,000.
You can also access a cash reserve facility, which is designed to make it quick and easy to draw further funds, to assist with associated expenses while in a retirement village (including fees, service charges, or day-to-day living expenses). There is no interest charged on any amount of your facility that has not been drawn down. Interest will only be charged on what you use.
Yes, you continue to own your home. The total loan amount, including accumulated interest and any fees charged, must be repaid within 3 years from when you take out the loan.
Once you have a Heartland Village Access Loan you are able to rent out your property, provided you meet the terms and conditions set out in the loan agreement.
To allow us to establish the value of your home, and therefore calculate how much you will be entitled to borrow, we will need to assess the value of your home. All applications will initially be assessed using an online valuation (i-val) which costs $17.41. Some applications may require a full market valuation (FMV), when certain criteria is met according to our valuations policy. In that case we will arrange for a registered valuer to visit your home to assess its value. You will need to pay for the cost of a FMV, which will depend on the location and value of your property. If a FMV is required, the i-val fee will not be charged. A copy of the i-val and the FMV report will be provided to you. For more information, please see our fee schedule.
With a Heartland Village Access Loan, you do not need to make regular repayments. The total loan amount, interest and fees charged is repayable within 3 years. This is required even if your property has declined in value or other adverse market circumstances exist at the time of payment. The loan is usually repaid from the sale proceeds of your home, and the balance is then retained by you or your estate.
You may repay all or part of your Heartland Village Access Loan at any time prior to your term completion, providing you with the flexibility to manage your finances in the way that suits you best. There are no early repayment charges, however a mortgage discharge fee will apply when you repay your loan.
If before the loan is repaid in full, the right to occupy the retirement village is cancelled or terminated, you must pay to us immediately any payments you receive from the retirement village operator in connection with that cancellation or termination. We will apply those payments towards the total amount owing on the loan.
You may repay all or part of your Heartland Village Access Loan at any time prior to your term completion, providing you with the flexibility to manage your finances in the way that suits you best. There are no early repayment charges, however a mortgage discharge fee will apply when you repay your loan.
If before the loan is repaid in full, the right to occupy the retirement village is cancelled or terminated, you must pay to us immediately any payments you receive from the retirement village operator in connection with that cancellation or termination. We will apply those payments towards the total amount owing on the loan.
You can access further funds via your cash reserve facility; however, the maximum amount you can borrow is up to 50% of the value of your home.
A Heartland Village Access Loan may affect your financial arrangements with the New Zealand Government (such as supplementary benefits). We recommend that prior to applying for this loan you contact Work and Income to discuss any potential impacts the Heartland Village Access Loan may have on your financial arrangements.
Visit workandincome.govt.nz for more information. This is also something that your solicitor can advise you on.
Visit workandincome.govt.nz for more information. This is also something that your solicitor can advise you on.
Some applicants (called nominated borrowers) may not be the sole owners of the home they live in. For example, the home might be in a family trust, or in the case of a couple, owned by only one person.
As long as the nominated borrowers of the home meet the age criteria, and all residents are recorded on the loan, you can still apply for a Heartland Village Access Loan providing all the owners agree to sign the application form and legal documents, and plan to move into the retirement village. This loan is not suitable for property owners who do not intend to move into the retirement village.
As long as the nominated borrowers of the home meet the age criteria, and all residents are recorded on the loan, you can still apply for a Heartland Village Access Loan providing all the owners agree to sign the application form and legal documents, and plan to move into the retirement village. This loan is not suitable for property owners who do not intend to move into the retirement village.
At Heartland, we are proud to offer our customers a high level of customer service, and your satisfaction is very important to us. If you would like to make a complaint or offer a compliment, we encourage you to contact us here.
