Reverse Mortgages NSW: Loan Scenario of the Week
Mr J (aged 71) is a widower who lives in his unencumbered house in the Sydney area of Ryde. Mr J wants to stay in his house as long as possible and has no direct beneficiaries.
Mr J earns an income from a part pension and from his Superannuation. This income is approximately $2,500.00 per month. He can meet his regular living costs from this income. However, he is not building up savings and is unable to save for large one-off expenses.
He wants to get a Reverse Mortgages to paint his house, update the bathrooms and then have funds for emergencies and discretionary spending. The discretionary spending will probably include funds for a new motor vehicle and travelling. In the long term he may use funds for in home care.
He does not want to draw funds from his superannuation fund as it will reduce the capital and thus his future income.
His beneficiaries are charities and his nieces and nephews. He feels he does not need to skimp on his future as there is no one relying on receiving an inheritance from him. He wants to improve his property and do some travelling etc.
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Mr J has gone for a loan facility limit of $350,000, which will be more than enough to do what he wishes to do plus spare income for one off expenses. He plans to only draw down as needed to limit his accrued interest.
This loan is not for ongoing income support but for one off large discretionary expenses and unexpected events. The loan in another example of how a Reverse Mortgage has allowed Mr J to maintain his lifestyle and live freely in his house.
(Names, Location and Amounts have been changed to protect client identity.)
Reverse Mortgages NSW: Loan Scenario of the Week (19/01/2023)
Reverse Mortgages NSW: Loan Scenario of the Week (23/12/2022)
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