Getting around mining subsidence issues

Thinking about a reverse mortgage? Start here.

101 Uses for a Reverse Mortgage

Real stories. Real solutions.

Welcome back to our series, 101 Uses for a Reverse Mortgage, where we highlight the unexpected, practical ways Australians are using reverse mortgages to create security, freedom, and financial independence in retirement.

Each week, we bust the myths surrounding these loans by sharing real case studies* — no hype, no jargon, just real people solving real challenges with the right guidance and advice.

Case Study 8: Getting around mining subsidence issues

When most people think of reverse mortgages, they often think of retirees looking to top up their pension or unlock a bit of equity to live more comfortably. But sometimes, the real power of a reverse mortgage isn’t just in what it funds – it’s in the problems it solves.

This client’s story: A determined woman with a practical plan

Our client, a 56-year-old single woman, came to us with a clear vision. She wasn’t retired yet, but she was planning ahead. With a stable income from her job and a solid plan for her financial future, she had goals:

• Consolidate her existing debts
• Replace her ageing car
• Renovate her bathroom and kitchen to make her home more comfortable and modern

All in all, she needed $130,000 to make it happen.

She also had a strong repayment plan in mind: contribute $1,000 per month toward the interest and debt for the next 20 years.  Then pay any remaining amount from her superannuation once she could access it. Her plan meant she could enjoy the benefits of a reverse mortgage while still retaining ownership of her home – and ensuring it could one day be passed on to her son.

Sounds like a solid deal, right?

Well, not so fast.

The roadblock: A mining subsidence claim from years ago

This woman owned her own home in a regional area. Valued at $900,000, it had more than enough equity to support her modest loan needs. But the home was near a former coal mine that had shut down over 7 years ago.

Back in 2017, a mine subsidence claim had been lodged and resolved. The issue had been fully repaired and, according to Subsidence Advisory NSW, there had been no further movement, no further claims, and no issues since that time.

Despite this, her application was initially declined by the bank.

Not because of her income.
Not because of the property’s value.
Not because of her plan.

But because of one old claim.

Getting the transaction over the line

This was the first time we’d dealt with this kind of situation – but we weren’t going to let that stop us.

We made the case directly to the lender:

“This home should be assessed on its current condition and stability, not just its history. The event in question occurred more than 8 years ago, has been fully resolved, and there’s been no sign of further concern.”

We professionally and respectfully tabled with the lender that many homes in regional or mining areas will have some history – but what matters is whether the issue is ongoing.

We also reinforced the client’s financial strengths, her stable employment, and the fact that this loan was part of a long-term plan to stay in her home and pay it off with dignity and independence.

And guess what?
They agreed.

The outcome: A new car, a new kitchen, and peace of mind

In the end, our client secured:

• An initial advance of $130,000 (per the categories below)
• A $9,000 cash reserve for any future needs
• Funds for $30,000 in home improvements,
• $57,000 to clear her debts, and
• $43,500 to purchase a reliable new car

She also covered the initial loan fees, all within the reverse mortgage structure.

Now she has a fresh start, a more comfortable home, and a realistic repayment plan that puts her in control.

The lesson?

Sometimes, the biggest benefit of a reverse mortgage isn’t the money itself – it’s the ability to push past roadblocks that would stop someone else in their tracks.

This isn’t just about debt consolidation or renovations. It’s about creating solutions where others see dead ends.

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Use #8 of a reverse mortgage?
Overcoming property stigma from historical mining activity – and giving someone the chance to move forward with confidence.

Stay tuned for Use #9 in the series…

Book your free consultationtoday
Let’s talk about whether a reverse mortgage is right for you — or if there’s a better path forward.

This case study is based on a real client scenario. Names and identifying details have been changed to protect privacy. The information is general in nature and does not constitute personal financial advice. Outcomes described are specific to this client’s circumstances and may not be typical. Please seek advice tailored to your individual situation before making financial decisions.