Case Study 2 - Lorna

Lorna, aged 77 and widowed wanted to travel to England to spend some time with her daughters and grandchildren who now lived there permanently. Her home was valued at $375,000 so she was able to borrow a maximum of $120,000.

She elected to take $10,000 in a lump sum for her trip and decided to apply for a $600 per month payment for the next 10 years to use as she saw fit.

After returning from England, she found that the $600 per month was more than she needed, so as she accumulated excess funds, she paid those back off the mortgage.

She now frequently goes on train trips to North Qld with her friends and can afford it comfortably without eating up too much of her equity.