Four to eight weeks, five steps, and the two that take longest are the valuation and getting in to see your solicitor. Here is what happens, in order, and what you can do to keep it moving.
Step One: Advice And A Needs Assessment
Before any form is filled in, someone should ask what the money is for, how long you plan to stay, who else is affected, and whether a reverse mortgage is the right tool at all.
Heartland’s own process asks you to consider your future needs and objectives, and both lenders recommend financial advice. With me, this is a conversation of half an hour to an hour, by phone, at my Takapuna office or at your home, often with an adult child present. It ends either with a recommendation to look elsewhere, which happens, or with a written comparison of the two lenders for your situation and a projection of the balance over five, ten and fifteen years.
Nothing is applied for at this stage.
Step Two: Choosing The Lender And The Payout Structure
Heartland and SBS differ on borrowing limits at each age, property criteria, fees, drawdown facilities and equity protection. One usually fits better once your age, property and purpose are lined up.
The structure matters as much as the lender. Lump sum, monthly advance, reserve, or a combination; how much at settlement; whether to protect a share of equity for the family. These decisions drive the cost of the loan far harder than the quarter-percent difference in rate. We settle them before the application goes in, because changing them later carries fees.
Step Three: Valuation
The application is lodged, with your ID, proof of address, rates notice, insurance certificate and the title. The lender runs an online valuation first (Heartland charges $17.14) and only orders a full market valuation, at $850 to $1,500, where the property is unusual or the online figure is unreliable. A full valuation involves a registered valuer visiting the house and takes one to three weeks depending on their workload.
The valuation sets the lending limit. If it comes in lower than expected, the available amount falls with it.
Step Four: Independent Legal Advice (Why It Is Compulsory)
Once the lender issues loan documents, you take them to a solicitor of your own choosing. The solicitor explains the contract, your obligations, the guarantees and the consequences, certifies to the lender that they have done so, and handles the registration of the mortgage.
This step is a lender requirement with both Heartland and SBS. It cannot be skipped and it should not be rushed. It costs you the solicitor’s fee, typically $800 to $1,500, and it is the main protection you have against signing something you did not understand or were pressured into. If the solicitor has concerns, they will say so, and the lender will listen.
Where the property is in a trust, the trustees all sign and the solicitor’s work is more involved. Allow extra time.
Step Five: Settlement And Drawdown
Your solicitor and the lender settle on an agreed date. Any existing mortgage is repaid, the new mortgage is registered on the title, the lender’s fees and the valuation cost are deducted from the first drawdown, and the balance is paid to your account. A reserve facility is set up and sits undrawn. A monthly advance begins the following month.
From that point, statements arrive every six months. Draws from a Heartland Flexi Reserve are made through the app or by phone, with no fee.
How Long It Usually Takes
| Stage | Typical time |
|---|---|
| First conversation to written comparison | 1 week |
| Decision time | As long as you need; a fortnight to a few months |
| Application to valuation complete | 1 to 3 weeks |
| Loan documents to legal advice complete | 1 to 3 weeks, mostly waiting on a solicitor appointment |
| Settlement | Usually within a week of the solicitor’s certificate |
Four weeks is possible when everything lines up. Eight is common. Trusts, full valuations and existing mortgages all add time.
What To Have Ready
- Photo ID and proof of address for each borrower
- A recent rates notice and your insurance certificate
- A copy of the title, or the address so it can be searched
- Details of any existing mortgage, including the lender and approximate balance
- The trust deed, if the home is in a trust
- A rough figure for what you want to borrow and what it is for
- The name of a solicitor, or I can suggest firms on the Shore who do this work regularly
If you want to start at step one, book a chat. The advice page sets out what that first conversation covers and confirms there is no charge to you for it.
