Staying in the family home while improving Cash Flow and peace of mind

John and Betty had spent more than 50 years building a life, family, and memories in their Ivanhoe home. When rising living costs and urgent repairs began to place pressure on their pension, a reverse mortgage allowed them to protect their lifestyle, maintain their home, and continue welcoming family through the doors they cherish.

Background

John and Betty are retired pensioners who have lived in their Ivanhoe home for over five decades. It is the home where they raised their three children and where many of their most treasured memories were made. Their children are now adults with families of their own, and the home continues to play an important role in bringing the family together.

The couple have deep roots in the neighbourhood, having lived there since shortly after their marriage. They have built lasting friendships locally and particularly enjoy visits from their nine grandchildren, who still play in their parents’ former bedrooms and with toys lovingly preserved over the years.

Unsurprisingly, John and Betty have a strong emotional connection to their home and see it as the heart of their family.

Pain Point

Over time, the property began to show signs of age. The roof was leaking and in urgent need of repair, along with other maintenance issues. At the same time, John and Betty found it increasingly difficult to manage living costs on the Age Pension alone.

They became extremely cautious with spending – being frugal at the supermarket and frequently turning off lights and heating to reduce utility bills. Although friends suggested selling and downsizing, the couple were unwilling to part with the home, which they view as the glue that keeps their family connected. Too proud to seek financial help from their children, they needed a solution that preserved both their independence and dignity.

Solution

A Reverse Mortgage was arranged, enabling John and Betty to access the equity in their home without selling or moving.

The solution provided:

Funding to replace the leaking roof and complete other essential maintenance and repairs;

A contingency buffer to cover future maintenance or unexpected expenses; and

A regular drawdown of $500 per fortnight, supplementing their pension without affecting their pension eligibility.

Outcome

With the pressure of repairs and living expenses lifted, John and Betty were able to regain financial confidence and peace of mind. They can now comfortably pay household bills, heat their home when needed, and shop without constant concern about costs.

Most importantly, they were able to remain in the home that holds decades of memories, continue hosting family gatherings, and enjoy their retirement worry-free, with dignity and security.