A Moneybren tool
NZ REVERSE MORTGAGE CALCULATOR
A reverse mortgage lets New Zealanders aged 60+ borrow against the family home with no repayments — the interest compounds instead. This shows what the debt becomes, what the house becomes, and what’s left for you or your family.
Your situation
yrs
$
$
% pa
Heartland’s variable rate as at early 2026 — always check the current rate. Interest compounds monthly.
% pa
Long-run NZ average is roughly 3–5% — use a conservative number.
yrs
At age 85 you would owe
$0
The debt vs the house
Year-by-year detail
| Age | Loan balance | Home value | Your equity | Equity share |
|---|
Read this with your family. No repayments means the interest is borrowed too — the debt compounds monthly and only ever grows. Both New Zealand providers (Heartland Bank and SBS Bank) include a no negative equity guarantee: you can never owe more than the house sells for, and you keep the home for life. Your NZ Super is not affected, but supplementary benefits and the residential care subsidy can be — check with Work and Income first. Independent legal advice is required before signing, which is a feature, not a hurdle. Before borrowing, price the alternatives honestly: downsizing, a family arrangement, or borrowing less now and topping up later (interest is only charged on what you’ve drawn). With only two providers in NZ, compare both.
How to use this calculator
Enter the age of the youngest borrower, your home’s value, and how much you’d like to borrow. The calculator compounds the debt monthly at the interest rate, grows the house at your assumed rate, and shows the equity left at any age you pick.
Try it with zero house price growth too. The comfortable projections all lean on the house growing — see what the picture looks like if it doesn’t.
This is a tool only, and none of the information it produces is financial advice. Its accuracy is not guaranteed. Always check your own figures and get advice from your own financial professionals before making decisions.