Reverse Mortgages NSW: Loan Scenario of the Week
Marcus (aged 69) and Carol (aged 66) live in their home in Sydney’s Hills District.
They have a mortgage over the property of approximately $245,000 and a latitude credit card with a limit of $15,000 and $12,000 outstanding. They want to do a Reverse Mortgage to pay out the credit card and refinance the Reverse Mortgage so there are no regular repayments. This will free up their cashflow and leave some Reverse Mortgage funds available for discretionary spending such as travel and possible replacement of their motor vehicle in future.
The couple live off the aged pension and have a life annuity fund. The house is solely in Carols name as she owned it when she met Marcus. Despite the house being in Carols name the loan is to be in both Carol and Marcus’s name, so Marcus is protected under the Reverse Mortgage contract. This means even though Marcus does not own the house he would not have to leave the home and repay the Reverse Mortgage if something was to happen to Carol.
The loan is not for ongoing expense support. It is for the mortgage refinance and then one off or discretionary spending. As they plan to sell in 5 to ten years’ time, the loan requested should meet their needs and objectives over that time.
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The goals for this loan have been to free up cash flow, maintain the client’s lifestyle, and prepare them in case of any unexpected one-off expenses. All these goals have been achieved with this Reverse Mortgage and it has been a great result for Marcus and Carol.
If you would like to know more about how a Reverse Mortgage could help you please call Raymond on 0438 184 784 or Nicholas on 0438 184 785 and we will be happy to see if a Reverse Mortgage is correct for you.
(Names, locations, amounts, & other personal details have been changed to protect the clients identity.)
Reverse Mortgages NSW: Loan Scenario of the Week (12/05/2023)
Reverse Mortgages NSW: Loan Scenario of the Week (28/04/2023)
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