Supporting Family Wealth Through Reverse Mortgages
Purpose
Equity release to assist family property purchase
Client
74-year-old self-funded-retiree
Location
Cherrybrook, NSW
Property Value
$2.4m
Scenario
A 74-year-old customer living in Cherrybrook was enjoying a comfortable retirement funded by his superannuation. With a strong asset base and stable income, he was looking for a way to assist his son in purchasing a home.
Traditionally, this support may have come from drawing down on superannuation. However, doing so would have impacted his investment strategy and reduced his financial flexibility over time.
The client wanted a solution that would allow him to support his son immediately whilst maintaining his lifestyle and preserving his long-term retirement stability.
How did Brighten help?
Brighten offered Brighten Life®, a reverse mortgage solution that allowed the client to access equity from his home without disrupting his superannuation strategy.
Key benefits included:
- The interest rate of the reverse mortgage was lower than the returns generated through his superannuation investments;
- No requirement for ongoing repayments, meaning no impact on day-to-day cash flow, enabling him to maintain his lifestyle;
- Sufficient equity remained in both the property and his superannuation to support future needs, including aged care; and
- As a self-funded retiree, there were no pension implications to consider, simplifying the structure of the deal.
Outcome
The customer was able to see his son benefit from his support now, rather than later. Importantly, he managed to do so while maintaining his financial security and independence.