This couple had lived in their Glenelg home for over 30 years. The property was worth approximately $1.2 million and was owned outright - no mortgage. Both were retired, with their only income being a combined superannuation pension of approximately $85,000 per year.
They wanted to sell the family home, buy a low-maintenance two-bedroom unit in Brighton for around $650,000, and keep approximately $500,000 in cash for travel, helping with grandchildren's education costs, and general retirement living. The challenge was that most lenders require employment income to approve a loan - and these clients had none.
Many retirees assume they cannot get a home loan because they no longer earn a salary. While it is true that some lenders will not lend to retirees, others will - particularly when the loan-to-value ratio is low and the borrower has significant assets. The key is finding the right lender with the right policy.
Several lenders will approve loans for retirees based on superannuation pension income, particularly when the LVR is below 50%. The combination of low debt, strong assets, and regular pension income can satisfy responsible lending obligations even without employment income.
Jason identified a lender comfortable with pension income and a low LVR. The structure was simple: sell the Glenelg home for $1.2 million, purchase the Brighton unit for $650,000 with a small mortgage of approximately $100,000 (15% LVR), and keep the remaining proceeds - approximately $500,000 after stamp duty and selling costs - in cash and investments.
The small mortgage was deliberate. While the couple could have purchased the unit outright, keeping some debt and investing the excess made sense from a cash flow perspective. Jason worked with their financial planner to ensure the structure aligned with their broader retirement plan.
The couple sold their Glenelg home and settled on a bright, modern two-bedroom unit in Brighton with ocean glimpses. They have approximately $500,000 in accessible funds for travel, gifting to grandchildren, and general living expenses. Their small mortgage repayment is comfortably covered by pension income.
They have since booked their first extended overseas trip and set up education savings accounts for each of their four grandchildren. The move freed up both money and time - no more maintaining a large family home and garden.
We thought being retired meant no lender would touch us. Jason found one that was perfectly happy with our pension income and the low loan amount. The whole process was straightforward and we now have the freedom to enjoy retirement properly.
Book a chat with Jason or Steve. We will assess your situation honestly and tell you exactly what is possible.