Reverse Mortgage Products
Retirement Finance Solutions Tailored to Your Needs
Like many other seniors, you want to retire confidently knowing you have enough money to live comfortably. But how much will you need, and how can you make sure you have enough?
Our products are based on extensive discussion with you in the first phases, so that we can determine your precise needs, circumstances and goals.
Then, we choose the best product for you – personalized according to those consultation meetings.
Our Products
STRUCTURED
to cover any or all of your current / ongoing / later life needs
COST CONTROLLED
to ensure the lowest fees and interest rates for appropriate loans
INTERNET FEATURES AND VISA DEBIT CARD
if you require them
REASSURANCE
Lifetime term protection for surviving spouse
Nil Negative Equity Guarantee that loan repayment will not exceed the value of the security property.
RETIREMENT FINANCE SOLUTIONS FOR OUR CLIENTS
Below are some examples of how this process works to provide the various solutions that are most common among our clients.
(We have protected their privacy by changing their names and faces in our stories, but of the thousands of people we have helped over the years, these are the examples we chose in order to highlight the range of possibilities for you)
ADDITIONAL INCOME
Brian and Maureen were 71 and 68 years of age when they contacted us. They were self-funded independent retirees, who had been living comfortably for the past 7 years on their retirement investments. The effects of the Covid 19 crisis had reduced their interest and dividend income by just on 50% and they were concerned about being able to maintain their life-style. Brian did not want to sell assets in the depressed market environment.
Paul arranged a Reverse Mortgage loan that provided regular monthly instalments to ‘replace’ the reduced interest and dividend incomes they had become used to. We explained that they would be able to suspend these instalment payments when their interest and dividend income returned to their previous levels. This allowed them to maintain their lifestyle, without sacrificing any assets!
NEW or UPGRADED VEHICLE
Geoff was a single ex-serviceman, (with no immediate family) who had spent the majority of his working life in the services. He retired with a nice pension & super fund and invested the majority of those funds in a small acreage retirement property. He was very comfortable for a number of years, living on the pension. Two of his friends purchased motor bikes and joined a mature aged bike club. Geoff wanted to buy a Harley Davison and go riding with his mates, but was not able to find the $30,000 he needed.
Paul arranged a Reverse Mortgage loan that not only provided the initial lump sum for the bike, but also a monthly instalment of $190 to pay for the petrol and bike maintenance. Geoff came by our office the day after he picked up his new ‘hog’. He certainly was a very happy client!
GIFTING TO CHILDEN AND GRANDCHILDREN
Sue was an 83 YO widow when her son contacted us and requested that we meet with Julie to arrange a Reverse Mortgage loan. The son had recently purchased a large rural property and had discussed with his mother, the option of her borrowing some funds via a reverse mortgage to assist him in setting up the new property. ‘Julie’ was only too happy to be able to help, saying that she wanted to ‘give something to her son with a warm hand NOW, rather than a cold hand after her passing’!
Paul arranged a Reverse Mortgage loan with an initial lump sum to help Julie’s son with the new property. Julie & her son have made arrangements that the repayment of the loan will be made out of the son’s share of her estate, to protect her daughter’s (the only other beneficiary of her estate) interests.
HOME RENOVATIONS AND MAINTENANCE
Mary and John had elected to retire early when John was made redundant at aged 62. They had $42,000 owing on their home and their mortgage repayments were only $56.00 per week. John had $58,000 in his super account that they rolled into an allocated pension. After 4 years of retirement, their car needed replacement and they were finding life difficult. They had been considering selling their home of 12 years and downsizing to a smaller house or unit. They did NOT want to move from their suburb and were concerned at the $15,000 odd costs of changing their home.
Paul arranged a Reverse Mortgage loan with an initial lump sum sufficient to cover the cost of paying out their mortgage loan, the new car and some small house renovations, with an ongoing monthly instalment of $185.00. The overall effect was that they had saved $56.00 a week that they were no longer paying on their mortgage, they also saved the $15,000 change over costs by not selling and buying another property; they had an extra $185.00 per month to spend AND they had a new car!
HEALTH / AGED CARE
Barry and Annette had been living in their home for 48 years when Barry was assessed as needing to enter Residential Aged Care. They needed to pay an accommodation bond of $445,000 – money that they did not have. Barry was adamant that Annette should stay in their home, so selling the home was not an option. Paul arranged an Aged Care loan to meet the cost of the Accommodation cost and Annette was able to remain living in her home.
PAY OUT AN EXISTING MORTGAGE OR REFINANCE A HOME LOAN
Phil and Maree Phil is aged 72 and Maree is 69. They bought their home 10 years ago for $660,000 and it is now valued at $1,200,000 – average growth of 6% per year. They have an existing mortgage of $120,000 and would like to access $800 per month for the next 10 years. Phil and Maree have freed up their cashflow with a refinance, and improved their lifestyle with an income stream. They have assessed their future equity position and decided there is enough equity to pay for any aged care and provide an inheritance to their 2 children.
CREDIT CARD BILLS
Julie is 73 years and single. She lives in a 2 bedroom home she purchased for $420,000 8 years ago in an outer Melbourne suburb and which is now valued at $650,000. Her credit card has ballooned out to $9000, she desperately needs to buy a second-have car for $15,000 and increase her income by $500 per month for the next 10 years without affecting her pension. She feels she should be able to live a reasonable retirement. Julie has improved her cashflow by refinancing her credit card debt and is able to buy a car that should last her driving years. She has sought an additional $500 per month for the next 10 years, to make sure she can enjoy her later years with a little freedom. Julie will have enough equity to pay for any aged care and still leave an inheritance to her nephews and nieces.
