Heartland to buy ‘home equity release’ business for $87M, to raise $20M from shareholders

Fri, 14 Feb 2014

Feb 14 (BusinessDesk) – Heartland New Zealand, which gained a banking licence just over a year ago, has agreed to buy a ‘home equity release’ mortgage business from buyout firm Quadrant Private Equity for $87 million in cash and shares and plans to raise $20 million of that from shareholders. Home equity release (HER) products target the elderly, allowing them to draw against the equity in their home. Similar products have been called reverse mortgages and deferred settlement schemes. Typically, the borrower doesn’t pay interest and the mortg...

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