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Loan Scenario of the Week (29/09/2023)

Peter (aged 77) lives in his unencumbered home in the NSW Riverina. Peter is a widow and he has no children.

 

Peter has realized he is slowly reducing his savings by around $200.00 per week.  He is looking to do a Reverse Mortgage to receive $250 per week to top up his income to meet his living expenses. He then wants to have the maximum credit line available for future contingent expenses and discretionary expenses such as travel.

 

Peter uses his credit card for most of his day to day expenses. It is paid off every month by a direct debit from his bank account. Thus he wants to keep his credit card and does not need it paid off.

The $250 per week will last for at least 10 years. If at this time he still needs the funds he can probably increase his loan at that time.

 

As Peter has no children his estate is left to his nieces and nephews. He is more concerned with his comfort and maintaining his lifestyle than leaving them an inheritance. If necessary, the property can be sold for aged care purposes. This has allowed Peter to continue his desired quality of life.

 

If you would like to know more about how a Reverse Mortgage can help you achieve your lifestyle aspirations please call Raymond on 0438 184 784 or Nicholas on 0438 184 785.

 

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

 

 

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Loan Scenario of the Week (22/09/2023)

Eric (aged 77) and Donna (aged 76) have lived in their property on Sydney’s North Shore for 43 years. They wish to continue living there for as long as possible. Eric plays golf several times a week. They have a very active social life. They wish this to continue.

 

They have a Reverse Mortgage of approximately $1,130,000.00. Their property is valued at $4,500,000 and they wish to increase the limit of their Reverse Mortgage. Due to the various lenders in the market it is far cheaper to refinance with a different lender than just do an increase with their current lender.

 

The new Reverse Mortgage will be used to refinance (approximately $1,100,000) and then they wish to receive $4,000 per month for the next 5 years ($240,000). They would like to have an available credit line on top of this of $100,000 for unexpected costs or unplanned expenses, or to continue the monthly payment after the initial 5 years.

 

Eric and Donna have one surviving son, he is in a strong financial position and so is not reliant on receiving an inheritance. He is aware of the Reverse Mortgage and that they are looking to refinance. Due to the value of the property it is more than likely their son will still receive a large inheritance.

 

The property is of a high value and well positioned. Even with this larger than usual Reverse Mortgage the borrowers will have a lot of equity to pay for aged care costs if necessary in the future.

 

This loan has allowed Eric and Donna to continue their retirement and enjoy their retirement instead of enduring it.

 

If you would like to know more about how a Reverse Mortgage can help you achieve your lifestyle aspirations please call Raymond on 0438 184 784 or Nicholas on 0438 184 785.

 

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

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Loan Scenario of the Week (15/09/2023)

Joan (aged 66) lives in her unencumbered home in Wollongong. She is a widow and lives alone.

 

She was retrenched and has been unable to find new work due to her age and so is currently relying on the jobseeker payments for her income. She will qualify for the full aged pension in January 2024.

 

Due to the low income, she has been reducing her savings. Whilst no bills are in arrears, she knows that if she does not do anything soon, she will run out of money.

 

Joan is looking to do a Reverse Mortgage to assist with her living costs until next year when she starts receiving the Aged Pension.

 

Once she starts receiving the aged pension, she will need less funds from the Reverse Mortgage and then she would like a credit line for unexpected one off costs or discretionary spending. This loan has provided Joan with an immense amount of relief and financial certainty.

 

 

If you would like to know more about how a Reverse Mortgage can help you achieve your lifestyle aspirations please call Raymond on 0438 184 784 or Nicholas on 0438 184 785.

 

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