Background

Like so many other women of her age, a divorce had left Heidi somewhat financially vulnerable. She had approached her current mortgage lender to let them know that she could no longer afford repayments.

They agreed to pause her loan repayments for a period of 3 months, to give her time to organise a refinance.

Borrowers’ Concern

Heidi knew she could not afford to resume repayments and would be forced to sell the home in order to pay out the home loan if she could not organise a solution.

She did not want to sell and relocate due to downsizing costs. She was also happy and settled in her community and did not want to leave. She was also worried that her disability pension would not cover all her lifestyle costs, going forward. 

Loan Purpose & Structure

Total Reverse Mortgage loan facility of $247,000, comprising:

• a lump sum of $141,000 to refinance all home loan and consumer debts
• an additional ‘cash reserve’ of $106,000 (available, but undrawn funds) for future use

Background

Joan, together with her late husband, were once at the helm of a thriving restaurant. The abrupt disruptions caused by COVID-19, however, shattered their business dreams. The grief was compounded when, a year after her husband's passing, Joan discovered a debt of $80,000 to their suppliers, which prompted a caveat on their property.

Borrower's Concern

Now solely reliant on her Age Pension, Joan faced financial encumbrances that seemed insurmountable. Seeking solutions, she approached her lender and, in a gesture of understanding, was granted a 1-year reprieve on her repayments. But parting with her home, a sanctuary of memories, was inconceivable to Joan. She was resolute in her decision to retain it for at least another 3-5 years.

Reverse Mortgage Loan Purpose & Structure

Day 1 Requirements: $355,000

• Determined to regain her financial stability, Joan's goal was to refinance her home loan, car loan, and credit card, while also ensuring all outstanding dues were cleared.
• Although her credit card was refinanced, she kept the facility active for unforeseen needs.
• A segment of the loan was earmarked for home improvements, allowing her to invigorate her dwelling with a new coat of paint and other minor enhancements.

Cash Reserve: $0

• Prioritising immediate financial alleviation, Joan chose to draw all her funds upfront.

Background

Vince had been navigating a dual income source, drawing from both his Age Pension and earnings from a part-time job. This income balance was already delicate, with a significant portion of his pension funnelled into servicing his existing mortgage. When interest rates climbed, the financial strain intensified, rendering his mortgage repayments unaffordable. Vince, unfortunately, fell a few months behind, and the bank began sending ominous foreclosure warnings.

Borrower's Concern

Despite these financial adversities, Vince remained deeply attached to his home. It represented more than just bricks and mortar; it was his sanctuary, filled with memories and personal history. The looming threat of losing it added emotional weight to his already challenging financial circumstances.

Reverse Mortgage Loan Purpose & Structure

Day 1 Requirements: $290,000

• Vince chose to refinance his home loan.
• His goal: prevent foreclosure and establish a sustainable financial structure.

Cash Reserve: $35,000

• Vince set up an additional line of credit.
• Purpose: a cushion for unexpected expenses and future needs, providing a financial safety net.

Background

Bob and Sandra, a resilient couple in their golden years, had relied on their joint Age Pension for sustenance. Just a year prior, they had confidently managed their finances, servicing their debt through their pension and occasionally dipping into their savings.

Borrowers’ Concern

The changing financial climates introduced unforeseen challenges. The combination of rising interest rates and an escalating cost of living began to eat away at their savings at an alarming rate. What was once a financial cushion started to feel like a fast-depleting resource.

Reverse Mortgage Loan Purpose & Structure

Day 1 Requirements: $110,000

• The couple aimed to refinance their home loan.
• They also wanted to replace their 15-year-old car for dependable transportation.

Cash Reserve: $90,000

• Bob and Sandra set up an extra line of credit.
• Purpose: supplement their Age Pension and provide a continuous income source for the coming years.

Background

Allan and Nancy, hailing from regional Victoria, epitomise the success story of self-made individuals.

This high net worth couple, comfortably settled in their late 60's, own an unencumbered property worth $1,500,000.

Not reliant on the Aged Pension due to their astute financial management, they've always enjoyed a certain independence in their financial decisions.

Borrowers’ Concern

With the horizon of retirement drawing closer, Allan and Nancy were contemplating the next phase of their lives.

They envisioned a future where they could scale down their business commitments, gradually transitioning to semi-retirement over the ensuing 5-10 years.

However, they faced a dilemma: how could they maintain their desired lifestyle without eating into their hard-earned superannuation?

Background

Ian and Phyllis, a couple rooted in metropolitan Melbourne, have seen the ebb and flow of life from their late 70's vantage point.

Their property, valued at $750,000, had an existing Reverse Mortgage (with another lender) amounting to $70,000.

The full couple's Aged Pension was their sole income source, helping them manage their day-to-day expenses. But as time rolled on, the rising cost of living became a growing challenge.

Borrowers’ Concern

Though they were "managing" in the present, Ian and Phyllis found themselves increasingly uneasy about their financial stability, especially given the escalating cost of living.

They had already downsized once, with a clear intention to stay in their current home for the foreseeable future. But the interest charged on their existing Reverse Mortgage loan was, in their view, excessively high.

They needed a solution that would offer them both relief from this financial strain and a buffer against future uncertainties.

Background

Nick and Maria, proud homeowners in metropolitan Melbourne, have experienced life's highs and lows together.

Despite owning a property worth a hefty $1.5 million, they had an outstanding home loan of $60,000 with a bank.

Relying on the couple's Aged Pension to fund their daily needs, they found themselves at a crossroads, struggling to uphold the lifestyle they once cherished.

Borrowers’ Concern

For Nick and Maria, the aspiration was clear: they wished to stay in their family home for the long haul.

However, the financial strain of their existing home loan and the aspiration for certain amenities, like a new motor vehicle, loomed large.

They felt the pinch of their limited pension income and yearned for a financial solution that could help them close out the home loan and afford some lifestyle upgrades.