After considering their options and talking to their family, Doug and Susan opted for a reverse mortgage secured against their home in Ivanhoe. This financial strategy allowed them to access the necessary funds without selling their properties or significantly affecting their day-to-day finances.

By taking out  a home equity loan for family, Doug and Susan were able to gift James and his partner $120,000 for their home deposit. This support enabled James and his partner to enter the property market, securing a favourable mortgage and reducing their financial stress. They documented the gift in writing to protect James in the event he and his partner separated in the future.

While they were doing this, Doug and Susan set up an income stream of $4,000 per month for five years to assist with their grandchildren’s private education. This consistent financial support ensured that their grandchildren could access better-quality education, hopefully enhancing their future prospects.

The decision to use a reverse mortgage brought significant emotional and financial benefits to Doug and Susan’s family. James and his partner achieved their dream of homeownership, and Doug and Susan had the satisfaction of knowing they were investing in their grandchildren’s education and future.

This financial arrangement also allowed Doug and Susan to maintain their lifestyle in Ivanhoe, retain ownership of their properties and provide financial support to their family without compromising their own financial security.