Moving closer to family – Without selling out

Welcome to our new blog series, 101 Uses for a Reverse Mortgage, where we highlight the real-life ways, Australians are using reverse mortgages to solve practical financial challenges — and create freedom in retirement.

There’s still a lot of misunderstanding about these loans. Many people believe that reverse mortgages are risky or exploitative — when in fact, for the right person in the right situation, they can be a powerful tool for security, choice, and peace of mind.

In each blog, we’ll share a short, anonymised case study of a client we’ve helped, to show how flexible and functional these loans can be — often in ways most people wouldn’t expect.

Case Study #1: Moving closer to family – Without selling out

Client Profile:

Our client is an 80-year-old widow who lives in Queensland, and wants to move to country Victoria to be closer to family. Her sole source of income is the Centrelink age pension, and she therefore has no capacity for ongoing loan repayments.

Challenge:

Our client wanted to move to regional Victoria, to be closer to her family. She had sold her Brisbane home for $750,000 and planned to purchase a new home in country Victoria for the same price — a like-for-like move.

But there was a complication: She still had an outstanding home loan to clear, plus credit card debt and additional costs like stamp duty and moving fees. She also wanted a small cash reserve as a safety buffer for unexpected expenses.

Solution:

Because of her age and limited income, traditional lenders couldn’t help. But a reverse mortgage could.

Using a reverse mortgage loan of $210,000, she was able to:

• Pay off her existing home loan and credit cards
• Cover the stamp duty and purchase costs of her new home
• Cover the moving costs (not insurance)
• Set aside a $10,000 cash reserve for emergencies

Her new home in Victoria is now her principal place of residence, and she plans to stay for at least the next 5 years. She doesn’t need to make any repayments during the loan term. The loan will be repaid from the future sale of the property — at a time that suits her or her estate.

The Outcome:

This loan gave her the freedom to move closer to loved ones, clear her debts, and enjoy her retirement with security and dignity — all without sacrificing homeownership.

Why This Matters

Reverse mortgages aren’t just for people in financial crisis. They’re for people who want to stay in control of their lives, their choices, and their homes — even in retirement.

Stay tuned each week as we continue to share real stories of Australians using reverse mortgages to fund their lifestyle – or simply make life a little easier.

This case study is based on a real client scenario, however names and identifying details have been changed to protect the privacy and confidentiality of the individuals involved. 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. Always seek professional advice tailored to your individual situation before making financial decisions.