(26/05/2023)
Reverse Mortgages NSW: Loan Scenario of the Week
Anthony (aged 85) is in residential aged care. In November 2022 Evan (who is Anthonys son and Power of Attorney) made the hard decision to put Anthony into care after a recent decline in health.
He currently has an existing Reverse Mortgage with a balance of approximately $190,000 that must be repaid now that he has permanently left the security property. Evan is Anthony’s son and the Power of Attorney. Evan (the PoA) lives in the security property.
Anthony has been granted protected person status from Centrelink which has reduced the asset value of the property for aged care fee purposes. Thus, the aged care fees are only 85% of Anthony’s pension. However, the property maintenance and extra medical costs of Anthony mean there is a monthly shortfall in Anthony’s income. Evan is not in a financial position to pay rent or further support Anthony and if he does it will increase the Aged Care fees.
Recently, Anthony had to attend some rehab care which they thought was going to be included in his current aged care costs. Unfortunately, it was not and had to be paid so this has been deferred to a payment plan.
This loan is to pay out the original Reverse Mortgage and bring the rehabilitation debt up to date, make up the shortfall in income that is occurring every month and to have extra funds available for property maintenance and aged care and health care costs of Anthony. It has provided Evan, with a great deal of comfort as he no longer needs to worry about how he will afford his fathers’ care.
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 client’s identity.)
Reverse Mortgages NSW: Loan Scenario of the Week (02/06/2023)
Reverse Mortgages NSW: Loan Scenario of the Week (12/05/2023)
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