The fees are modest. The interest is not. People tend to worry about the first and overlook the second, so this page sets out both, with Heartland’s published figures as the example because SBS does not publish a comparable schedule online.
Application And Establishment Fees
Heartland charges an arrangement fee of $920 on the settlement date, deducted from your first drawdown so nothing is paid from your pocket. If you take the Equity Protection Option there is a one-off fee of $55. A monthly advance carries a one-off establishment fee of $120.
There is no application fee, and if you change your mind within 30 days and repay the loan in full, Heartland refunds the arrangement fee.
SBS charges establishment and other fees under its Reverse Equity Mortgage Fees and Charges schedule; ask for the current figures when comparing.
Valuation Costs
Every application starts with an online valuation, which Heartland charges at $17.14. Where the property is unusual, the online figure is unreliable or the loan is larger, a full market valuation by a registered valuer is required. Heartland quotes $850 to $1,500 for this, more for properties outside main centres where travel is involved, and the online fee is waived if a full valuation is done. The valuation fee is deducted from the first drawdown.
A full valuation is more likely for apartments, lifestyle blocks, baches, properties over about $1.5 million and anything with unusual construction.
Legal Advice: Required, And Paid By You
Both lenders require you to receive independent legal advice from a solicitor of your choice before signing. The solicitor reviews the loan agreement, explains your obligations and the guarantees, certifies that they have advised you, and handles the registration of the mortgage.
This is your cost, not the lender’s, and it is not deducted from the loan unless you arrange that with your solicitor. Expect $800 to $1,500 for a straightforward owner-occupied home with no existing mortgage, and more where a trust is involved or an existing loan is being discharged. Shop around a little; some firms on the Shore do a good deal of this work and price it accordingly.
Ongoing Fees And Statements
Once the loan is running, the ongoing fees are small.
Heartland’s Flexi Reserve, which replaced the Cash Reserve from 28 September 2026, has no drawdown fee. Older Cash Reserve facilities charged $70 per draw. If Heartland has to pay your rates or insurance because you have not, it adds the amount plus a $23 administration fee to the loan. Third-party costs such as a field agent visit are charged at actual cost if they arise.
Statements arrive every six months showing the balance, the interest added and any draws. There is no account fee.
Discharge Fees When It Is Repaid
Heartland charges a mortgage discharge fee of $270 when the loan is fully repaid, added to the final balance. There is no early repayment penalty with either lender, so repaying after two years costs the same discharge fee as repaying after twenty. Your solicitor will charge for handling the discharge on the title, typically a few hundred dollars.
Changes during the loan carry fees too: $455 for a further advance and $375 for a variation at Heartland.
The Cost Nobody Lists: Compounding Interest
Add all the fees above together and a typical set-up is around $2,000 to $3,000 including legal costs. That is a one-off, and it is small.
The interest is the real cost. On $100,000 at 8.25 percent with nothing repaid, the interest alone is about $51,000 over five years, $128,000 over ten and $243,000 over fifteen. The fees are a rounding error beside it. Anyone comparing lenders on fees while ignoring how much they are borrowing and how fast they are drawing it has the picture upside down.
A Full Cost Example From Start To Finish
Pat is 76, in a $780,000 Birkdale home, and borrows $60,000 as a lump sum for a new kitchen and car, with a $30,000 Flexi Reserve she never uses. She stays nine years and the house is then sold.
| Item | Amount |
|---|---|
| Arrangement fee | $920 |
| Online valuation | $17 |
| Solicitor for legal advice and registration | about $1,100 |
| Interest over nine years at 8.25%, compounding | about $65,000 |
| Discharge fee | $270 |
| Solicitor for discharge at sale | about $300 |
| Total cost of borrowing $60,000 for nine years | about $67,600 |
Her $60,000 cost her roughly $67,600 to borrow, almost all of it interest. The house, meanwhile, has likely grown by well over $200,000 in nine years at 3 percent a year, so her estate is larger than when she started. Both of those things are true at once, and both should be understood before signing.
I prepare this table for every client’s own figures before they decide. If you would like yours, book a chat.
