Two lenders, one product, and a surprising number of differences once you get past the headline rate. I work with both. Here is how they line up, and where one tends to come out ahead for a particular kind of client.
The Two Lenders At A Glance
| Heartland Bank | SBS Bank (SBS Unwind) | |
|---|---|---|
| In the market since | 2014 (acquired Sentinel’s book, which dates to 2004) | SBS Unwind launched 2020, replacing the earlier SBS Advance product |
| Size | NZ’s largest reverse mortgage lender; 27,800+ customers since 2004; book over $1.4 billion | The only other active lender; smaller book |
| Variable rate (October 2026) | 8.25% p.a. from 29 September 2026 | 7.99% p.a. from 12 September 2025 |
| Minimum age | 60; a partner aged 55 to 59 may be accepted alongside a borrower over 60 | 60 for all nominated residents |
| Maximum borrowing | (Age of youngest borrower minus 40)% of value: 20% at 60, 30% at 70, 40% at 80; cap 50% | About 10% at 60, up to 30% at 80; cap 50%; may increase if property value rises |
| Minimum property value | $250,000 | $250,000 (confirm with lender) |
| Minimum loan | Lump sum $10,000; monthly advance $300 a month; minimum balance $5,000 | $5,000 |
| Drawdown options | Lump sum, monthly advance (1 to 10 years), Flexi Reserve (free draws via app from 28 Sep 2026) | Draw as needed; top-ups over time; described as working like a revolving credit |
| Equity protection | Up to 50% of net sale proceeds; one-off fee $55; reduces limit by the same % | Protected Equity Percentage agreed at the start; fee applies; reduces limit |
| No negative equity guarantee | Yes | Yes (called the Loan Repayment Guarantee) |
| Second homes and rentals | Yes, via Secondary Property Loan at a lower limit | Generally owner-occupied only |
| Retirement village purchase | Not via the reverse mortgage; separate Village Access Loan | Not offered |
| Cooling-off period | 30 days; arrangement fee refunded on full repayment | Confirm with lender |
| Time to repay after leaving | Up to 12 months | Confirm with lender |
| Published fees | Arrangement $920; valuation $17.14 online or $850 to $1,500 full; discharge $270; further advance $455; variation $375 | Separate fee schedule; request current figures |
| Adviser referral fee | $2,000 on settlement, no clawback | Historically a flat fee; confirm |
Interest Rates And Fees Compared
SBS is a quarter of a percent cheaper on rate at the moment. Over the past few years the two have traded places, with Heartland lower for part of 2026 before its September increase. On $100,000 over fifteen years, a quarter of a percent is worth roughly $12,000, which is not nothing, but it is less than the difference a slower drawdown makes.
Heartland publishes its full fee schedule; SBS supplies its own on request. Compare total set-up cost for your actual structure rather than a single fee.
Minimum Age, Property Value And Location Rules
Both start at 60. Heartland’s willingness to consider a partner aged 55 to 59 is a real difference for couples with an age gap, though the younger age sets the limit.
Both set a $250,000 floor on property value. Both apply location criteria and can decline properties in small or remote markets. In my experience Heartland’s larger book makes it slightly more willing on borderline properties, but that is an observation, not a rule, and each application is assessed on its own.
Borrowing Limits And Flexibility
This is the largest difference. Heartland lends a higher percentage at every age below 90: 20 percent against about 10 percent at 60, 30 against about 20 at 70. For someone in their sixties or seventies who needs a larger sum, Heartland’s formula often decides the question on its own.
SBS counters with flexibility: the ability to draw up and down as needs change and the prospect of a higher limit as the property value rises. For a client who wants a small facility they will dip into occasionally, SBS Unwind can be the better structure.
Heartland’s three drawdown options, and in particular the Flexi Reserve with free draws, cover most needs. Its monthly advance for up to ten years is a feature SBS does not match in the same form.
Guarantees And Borrower Protections
Both provide lifetime occupancy and a no negative equity guarantee, and both require independent legal advice. Heartland’s 30-day cooling-off period with a refunded arrangement fee is a feature worth having. SBS’s process asks that family are involved before proceeding, which Heartland recommends but does not require.
Equity protection is available from both, up to 50 percent at Heartland. The mechanics are similar: protect a share, borrow proportionately less.
Second Homes, Rentals And Retirement Village Products
Heartland’s Secondary Property Loan, against an investment property or holiday home, has no SBS equivalent. If the aim is to borrow without touching the family home, Heartland is the only option.
Heartland’s Village Access Loan, for buying into a retirement village before the house sells, is a separate product rather than a reverse mortgage, and again has no SBS equivalent.
Which One Tends To Suit Whom
Heartland tends to suit: borrowers in their sixties or seventies who need a larger percentage; couples with a partner under 60; anyone wanting a monthly advance; owners of a rental or bach they would rather borrow against; and people who value the cooling-off period and the published fee schedule.
SBS Unwind tends to suit: borrowers who want a modest, flexible facility to draw on occasionally; those for whom the quarter-percent rate difference matters over a long horizon; and families who want the lender’s own process to require their involvement.
Neither is better in general. One is usually better for a given client.
How I Compare Them For Each Client
I put both lenders’ terms against your age, your property and the amount and structure you want, and show the result in dollars at five, ten and fifteen years. The comparison goes to you in writing, with the current rates on the day, to take to your family and your solicitor. If one lender declines your property, I will know before you pay for a valuation.
The referral fee I receive from Heartland is $2,000 on settlement, and I disclose it before we start. It does not change the rate or fees you pay, and it is not a reason to recommend one lender over the other; my disclosure statement sets out how I manage that. Book a chat and bring your address and your age; the comparison takes a day or two.
Sources: Heartland Reverse Mortgage and SBS Unwind Reverse Equity Mortgage.
