Helping an Aged Pension Couple Access a Reverse Mortgage

A retired couple in their mid-70s (Age Pension + small carer’s allowance) needed $200,000 to cover medical costs and home modifications. We helped them understand reverse mortgage options, selected a lender that matched their preferences (St George, local branch access, lump sum flexibility), resolved a missing title deed issue, and settled a facility that allowed them to draw funds as needed.

Who this case study is for

• Older Australians who are asset rich but income poor
• Homeowners considering a reverse mortgage to fund healthcare, aged-related home changes, or essential costs
• Families who want a clearer understanding of how reverse mortgages work in Australia and what the process can involve

The clients’ situation

John and Mary were in their mid-70s and owned their home in North Narrabeen outright, where they had lived since 1979 and raised their family.

Like many older Australians, they were in a position that looked strong on paper but felt much tighter in real life. They were asset rich, with substantial equity in their home, but income poor, relying on the Age Pension and a small carer’s allowance while also managing serious health-related costs.

Their situation was made more urgent by John’s ongoing illness. They needed funds to help cover medical treatment and to make practical modifications to their home so it would better suit their needs as they grew older. The money was not for lifestyle spending. It was to improve day-to-day safety, reduce pressure, and help John access better treatment and quality of life.

The funding goal

John and Mary needed to access $200,000 from the equity in their home, but they needed to do it in a way that was appropriate for their age, circumstances, and priorities.

This was not a standard loan scenario. They were retired, their income was limited, and the process needed to be handled with care. It was also important that the lender, product, and access to funds suited the way they wanted to manage things going forward.

Why a reverse mortgage was considered

A reverse mortgage was appropriate because it allowed John and Mary to access some of the equity in their home without needing to service regular loan repayments in the way a traditional home loan would require.

That mattered because their primary challenge was not lack of equity. It was lack of accessible cash flow.

Key concepts

• You can borrow against your home’s equity.
• Interest accrues over time and the loan balance generally increases.
• Funds can be accessed in different ways (for example, a lump sum or drawdown facility), depending on the lender and product.

How we handled the process

Just as importantly, the process itself needed to be manageable. They needed guidance that was clear, respectful, and practical from the outset.

Because of the nature of the situation, the first priority was not speed for the sake of speed. It was making the process as smooth, clear, and low-stress as possible.

We travelled to John and Mary’s home in North Narrabeen to meet them in person at a time that suited their routine. That gave us the chance to understand not just the numbers, but the people, the home, and what the reverse mortgage actually needed to achieve for them.

We took the time to explain how reverse mortgages work, what the process would involve, what the likely lender requirements would be, and what questions they needed answered before moving forward. We then helped them gather the required information and documents and returned to their home to complete the application paperwork with them in person.

What mattered most in the lender selection

The key was then to identify which lender could offer the right combination of:

• a suitable loan amount
• competitive pricing
• low ongoing friction
• lump sum access to funds
• practical branch access if needed
• a structure they felt comfortable with

This is where lender fit mattered. Even in a niche product area like reverse mortgages, the right lender is not automatically obvious from the outset.

The recommendation: St George

After comparing the available options, we recommended a reverse mortgage with St George.

That recommendation was based on several factors.

• Familiarity: John and Mary were more comfortable dealing with a major bank brand and did not want to move outside that space.
• Branch access: They wanted a lender with a local branch network they could visit if they needed help, and St George had a branch at Warriewood that they already knew and visited regularly.
• How funds would be accessed: They wanted access to funds via lump sum rather than smaller periodic advances. St George could accommodate that requirement.
• Overall fit: When we compared the available options, St George offered the strongest overall fit across upfront charges, ongoing fees, interest rate, and fund access flexibility. The structure also allowed them to draw funds when needed rather than unnecessarily paying interest on money that had not yet been used.

[Post script: St George do not currently offer a reverse mortgage product]

A major obstacle: the missing title deed

Partway through the process, a serious issue emerged that could easily have derailed the transaction.

The original title deed to John and Mary’s home was required, but it could not be located where they believed it was being held. They understood it to be in safe custody with National Australia Bank, but after an extensive search it could not be found.

The deed was eventually traced to Commonwealth Bank, where it had been filed in long-term secure storage. Even then, it took more than three weeks for the bank to physically locate the document.

We then arranged authority to collect the title deed and personally delivered it to St George so the matter could proceed. Once that issue was resolved, settlement moved ahead smoothly.

The outcome

We secured a reverse mortgage facility that gave John and Mary access to the $200,000 they needed, with the flexibility to withdraw funds in lump sums as required.

That allowed them to complete the home modifications needed to make the property easier and safer to live in as they aged. It also meant John could access better medical treatment and improve his quality of life during a very difficult period.

From a technical point of view, this was not the largest transaction. From a human point of view, it was one of the most meaningful.

Key takeaways

• Reverse mortgages can suit retirees with limited income when the need is essential spending and equity is available.
• Lender fit matters: access method (lump sum vs ongoing), fee structure, and client comfort (including branch access) can be as important as the rate.
• Documentation can be a hidden risk: title deed and custody issues can delay settlement, especially with older properties.
• A careful process reduces stress: plain-English explanations and in-person support can make a complex product more manageable.

Reverse mortgage FAQs

Do you need an income to get a reverse mortgage?

Reverse mortgages are typically assessed differently to standard home loans because regular repayments may not be required. Lenders still have requirements, and suitability depends on the borrower’s circumstances, property, and the lender’s policy.

How do reverse mortgages impact what you leave to family?

Because interest accrues over time, the loan balance generally grows and can reduce the remaining equity in the property. It’s important to understand long-term implications before proceeding.

Can you take a reverse mortgage as a lump sum?

Some lenders allow lump sum access, while others offer drawdown or a combination. The best structure depends on how quickly funds are needed and whether you want to limit interest on unused funds.

What can delay a reverse mortgage settlement?

Common issues include documentation, valuation outcomes, identity checks, and title-related matters (including locating title documents held in secure custody).

Considering a reverse mortgage?

If you are considering a reverse mortgage, it makes sense to understand the structure, the lender options, and the long-term implications properly before you commit.

Speak with Evolve Lending & Finance for clearer advice and a more considered path forward.

Note: Reverse mortgages are complex and may affect your long-term equity and estate planning. Consider obtaining independent legal and financial advice to ensure the structure is right for your circumstances.

To protect the privacy of the individuals involved, the names used in this case study have been changed. The case study is based on real-life scenarios and events, but all names have been substituted with fictitious ones to ensure the confidentiality of the parties.

Whether you are buying a home, refinancing, investing in property or funding a business, we help you understand your options, assess lender fit and structure the lending properly before you commit to a path forward.