Reverse Mortgages NSW: Loan Scenario of the Week

Timothy (aged 79) and Cynthia (aged 80) have lived in their property on the Central Coast over 9 years. They bought the property new, and it has fantastic views and is a beautiful home. They want to stay in the home as long as possible.

They have found that their living costs have increased and used to be around $3,500 per month. Their living costs are now around $4,000.00 per month. This is around $500 per month more than their pension income.

They have no arrears but can see that in the long term they will start to go backwards financially.

They are looking to do a reverse mortgage. The funds will be used to make up for any shortfall. They may also replace their oldest car.

They may go on one last trip to Europe and the Americas whilst they are still healthy and active.

They will draw funds on an ad hoc basis as required.

Their children are all very well off and no one is relying on an inheritance from the couple. The children are supportive of the loan, they appreciate If necessary, they can sell their property in the future to pay for aged care.

The funds will be used to cover expenses and on ad hoc as needed basis cover day to day expenses. They are borrowing a small proportion of what would be their maximum credit limit. If they eventually run out of funds under the loan, they will probably be able to increase their loan limit.

If you would like to know more about how a Reverse Mortgage can help you achieve your lifestyle aspirations please call Raymond on 0438 184 784 or Nicholas on 0438 184 785.

(Names, locations, amounts, & other personal details have been changed to protect the client’s identity. This post does not constitute advice.)

 

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