Keith (aged 74) lives in his in Sydney’s Western Suburbs. He is reliant on the Centrelink aged pension for his income.
He has a mortgage of approximately $230,000 over the property. He was surviving making the payments comfortably on his pension, but with recent rate increases the monthly payments are now taking most of his pension.
This has resulted in his savings now being reduced. He is also in arrears on his rates as he tries to save funds to meet the monthly mortgage payments.
Keith is a retired builder, and he has been renovating his property. The property is overall in good condition structurally but is a little tired. He wants to have some funds to complete the renovation of his bathroom and tidy up his backyard.
The Reverse Mortgage will repay his current mortgage meaning he does not have to make any monthly repayments. It will also provide funds to complete renovations. Most importantly it will also free up cashflow which will enable him to live comfortably in the future.
The loan is to reduce cashflow, finish the renovations and other one off or discretionary expenses. The reduced cashflow by refinancing the mortgage to a Reverse Mortgage with no compulsory repayments will help Keith meet his living costs and improve his quality of life.
If you have anymore questions on how a Reverse Mortgage can help you achieve your lifestyle aspirations, please call our Reverse Mortgage specialist in your state.