Michelle and Anthony

Michelle (aged 65) lives in her home in the Northern Beaches. Her husband Anthony (aged 71) lives in an Aged Care centre specialising in the care of people with alzheimer’s and dementia. He has been in Aged Care for over 5 years after developing early onset dementia.

Michelle is Anthony’s Power of Attorney. Michelle and her husband had a very successful business on the North Shore that was adversely affected by Anthony’s dementia, and then Covid-19. She had to close the business as it could not be sold.

They have a Reverse Mortgage over the property in the Northern Beaches for $410,000. This was taken out to assist in paying the Refundable Accommodation Deposit (RAD) for Anthony’s aged care facility. The $350,000 RAD will be refunded to Anthony‘s estate when he dies.

Michelle wants to refinance the current Reverse Mortgage as there is a substantial difference in the interest rates (0.82% per annum) and she will get a rapid payback (well under 12 months) by changing to the new lender.

They both receive the aged care pension. But they receive the single aged pension as they are separated because of medical issues. The majority of Anthony’s pension is used to pay aged care costs (85% of the pension).

As her property is so valuable, she wants to use some of the equity to maintain and do renovations her lifestyle. So on top of the $410,000 she is taking an additional $350,000.

This Reverse Mortgage has allowed Michelle, to organise quality care for her husband in an extremely difficult time, without having to sell her house and sacrifice on her lifestyle.