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 (04/08/2023)

Timothy (aged 82) and Karen (aged 73) live in their home in Western Sydney. They have a mortgage with of approximately $215,000.00. The payments have increased considerably in the last few months as interest rates have risen. They, also have an arrangement with council as they have rates arrears. Timothy and Karen are looking at a Reverse Mortgage to be able to free up the cash flow currently used to pay the mortgage.

Timothy and Karen are not receiving the full Centrelink Aged pension. This is because they have received advances on their pension from Centrelink. These advances are never more than $1,000.00 and are repaid by Centrelink taking the repayments out of the pension payment. With the Reverse Mortgage in place, they will not require this in the future.

They are looking at an initial amount to refinance the mortgage and the rates. Then they want to have a credit line available to undertake some minor improvements (carpet replacement), painting and to upgrade their car which is getting quite old. They would then have some funds available for unexpected costs and one-off events that may occur in future.

(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.)