Eric (aged 77) and Donna (aged 76) have lived in their property on Sydney’s North Shore for 43 years. They wish to continue living there for as long as possible. Eric plays golf several times a week. They have a very active social life. They wish this to continue.
They have a Reverse Mortgage of approximately $1,130,000.00. Their property is valued at $4,500,000 and they wish to increase the limit of their Reverse Mortgage. Due to the various lenders in the market it is far cheaper to refinance with a different lender than just do an increase with their current lender.
The new Reverse Mortgage will be used to refinance (approximately $1,100,000) and then they wish to receive $4,000 per month for the next 5 years ($240,000). They would like to have an available credit line on top of this of $100,000 for unexpected costs or unplanned expenses, or to continue the monthly payment after the initial 5 years.
Eric and Donna have one surviving son, he is in a strong financial position and so is not reliant on receiving an inheritance. He is aware of the Reverse Mortgage and that they are looking to refinance. Due to the value of the property it is more than likely their son will still receive a large inheritance.
The property is of a high value and well positioned. Even with this larger than usual Reverse Mortgage the borrowers will have a lot of equity to pay for aged care costs if necessary in the future.
This loan has allowed Eric and Donna to continue their retirement and enjoy their retirement instead of enduring it.
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.)