Heartland considering impact of RBNZ rules on reverse mortgages

Heartland Bank CEO Leane Lazarus. (Image: Supplied)

Fri, 30 Sep 2022

Heartland isn’t likely to be happy with the Reserve Bank of New Zealand's rules relating to reverse mortgages and the capital required to back them.But the Reserve Bank of NZ (RBNZ) appears loath to change the current rules, which have been in place since 2015 – pre-2015, reverse mortgages were treated the same as standard mortgages for the purpose of calculating bank capital.Heartland is by far the nation’s largest provider of reverse mortgages, although SBS Bank does offer them too.Such loans allow retired people to acce...

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