Amy’s parents were happy for us to refinance their loan to help their daughter.  However before we were able to do that, we had to show the new bank that there was an appropriate exit strategy for them given they were both over 55 years of age.  For example, banks are not keen to extend a new 30 year term loan if it means the borrowers would be 85 years of age by the end of the loan term.  We had to show that they could repay their loan before reaching retirement in order to have the refinancing approved.  

It worked out that their home’s value was quite high (approx. 1.7million) and they also had two other investment properties that were of great value that were entirely paid off.  If they sold those properties and dipped into their super, they would be able to pay off their entire home loan of $1.2million. This meant that they didn’t have to apply for a shorter loan term – which would have made repayments very high – and we were therefore able to save them thousands in interest per year under the refinanced loan.