Margaret’s Reverse Mortgage Story
15 July 2019
Margaret* has always had a sensible attitude towards money. “Live within your means,” she would advise her friends and family. But despite her responsible ethos, earlier this year Margaret contacted us, stressed and in debt.
At age 72, Margaret had been retired and relying on the Age Pension as her main source of income for several years. When her income fell short of her expenses, Margaret had resorted to using credit cards.
The resulting credit card repayments put further pressure on her cash flow, and Margaret had begun to wonder how she was going to fund the rest of her retirement. Having extinguished her safety net of superannuation, Margaret knew she wasn’t in a position to weather any unexpected future expenses. Would she have to sell her home to free up some cash?
Margaret didn’t want to sell her home and move. She enjoyed being part of her local community and living in her lovely home opposite the park. So it was with relief that Margaret learnt from her friend that there is a product available that’s designed specifically for seniors in this position.
Margaret’s friend referred her to Heartland Seniors Finance, where she met with Mark, the Customer Care Team Manager, to discuss options. He explained that a reverse mortgage could enable Margaret to access some of her home equity to refinance her debt and top up her monthly income, while continuing to own and live in her home. She was pleased to learn that our variable interest rate would also be lower than the interest on her credit cards!
Mark helped to structure Margaret’s loan according to her needs: an initial lump sum to clear her debts, a Regular Advance to supplement her income, and a Cash Reserve (like a line of credit) to provide financial security for the future.
Margaret’s loan settled within six weeks of her application and the relief was instant. Not only is Margaret now free from credit card repayments, there is also no requirement for her to make repayments on her reverse mortgage until the end of its term, which is whenever she chooses to permanently move from her home – this would be when the loan, plus interest, is payable.
Margaret continues to live within her means. But by utilising some of her home equity, she has is now fully enjoying her retirement in the comfort of her own home.
So, what does Margaret think about her Heartland Reverse Mortgage?
“It’s a fantastic product to assist you to live a more comfortable life.”
If you would like more information on how a reverse mortgage works, please give our friendly team a call on 1300 889 338 or send us an email at [email protected]