Juliette Taylor No Comments

Loan Scenario – Meeting needs for quality aged care plus renovations and maintenance.

Michelle (aged 65) lives in her home in the Northern Beaches. Her husband Anthony (aged 71) lives in an Aged Care centre specialising in the care of people with Alzheimer’s and dementia. He has been in Aged Care for over 5 years after developing early onset dementia. Michelle is Anthony’s Power of Attorney. Michelle and her husband had a very successful business on the North Shore that was adversely affected by Anthony’s dementia, and then Covid-19. She had to close the business as it could not be sold.

They have a Reverse Mortgage over the property in the Northern Beaches for $410,000. This was taken out to assist in paying the Refundable Accommodation Deposit (RAD) for Anthony’s aged care facility. The $350,000 RAD will be refunded to Anthony‘s estate when he dies. 

Michelle wants to refinance the current Reverse Mortgage as there is a substantial difference in the interest rates (0.82% per annum) and she will get a rapid payback (well under 12 months) by changing to the new lender.

They both receive the aged care pension. But they receive the single aged pension as they are separated because of medical issues. The majority of Anthony’s pension is used to pay aged care costs (85% of the pension).

As her property is so valuable, she wants to use some of the equity to maintain and do renovations to suit her lifestyle. So on top of the $410,000 she is taking an additional $350,000.

This Reverse Mortgage has allowed Michelle to organise quality care for her husband in an extremely difficult time, without having to sell her house and sacrifice on her lifestyle.

Nicholas Taylor No Comments

Loan Scenario of the Week (11/08/2023)

Thomas (aged 84) and his wife Florence (aged 85) live in their unencumbered home in the Sydney Hills District. Thomas has just fully retired and closed his business which he had been operating part time.  

Florence recently had a fall and Thomas has also found it difficult to come inside and up the stairs from the garage. As a result of this they have decided they want to install a lift in their home. They have done research and the cost is likely to be around $70,000 to $80,000.00. 

Their car is over 15 years old, so they are considering replacing it.  Thomas has a credit card with a balance of around $15,000. He would like to use funds from the Reverse Mortgage to pay this balance off. As they use it for a lot of transactions, they do not want to close the credit card. 

Then they want to have a credit line available for one off contingent events or discretionary spending such as travel. Having funds available will also mean they can pay for aged care assistance in the home if they need it in future. 

They have 7 children who are all financially independent. If necessary the property could be sold to pay for aged care if needed, but the children are also committed to helping their parents stay at home for as long as possible. The funds are not for regular expenses but for one off expense including discretionary spending (such as the adding of the elevator.) 

(Names, locations, amounts, & other personal details have been changed to protect the client’s identity.)

Nicholas Taylor No Comments

Loan Scenario of the Week (28/07/2023)

Lyndall (74) lives with her husband George (80) in the house in the Blue Mountains. George has dementia, and Lyndall has signed on his behalf as a Power of Attorney.

This loan is to pay off several debts that have built up over time. This is because the costs of living and the extra expenses to look after George has pushed the couple to living right on line of their pension incomes. They have 2 financial arrangements from when they were retiring that they have been paying off for over 10 years.

Lyndall has taken out a Reverse Mortgage to pay out these debts, and have some additional funds to supplement their pension income and money for one of large expenses. Lyndall is also worried that they could incur further large expenses in caring for George. The Reverse Mortgage will make funds available for this purpose.

This loan has given Lyndall great peace of mind in an already difficult time, she can now concentrate on caring for George and not having to worry about their finances.

(Names, locations, amounts, & other personal details have been changed to protect the client’s identity.)