Southern Highlands Retiree Faces Home Sale After Bank Loan Refusal

Michael, 77, a self-funded retiree, has resided in the Southern Highlands of New South Wales for over two decades. His income was primarily supported by dividends from Australian bank shares.

Compounding Challenges Emerge

During the COVID-19 pandemic, these dividends were significantly reduced, impacting his cash flow. Concurrently, Michael experienced the profound loss of his wife.

Property and Inheritance Dilemma

Their family home, valued at over $3 million, was registered in her name and carried a mortgage of approximately $70,000. According to his wife's will, the property was to be transferred to Michael, with a subsequent bequest planned for his stepson.

Michael's bank, despite his long-standing customer relationship, declined to transfer the existing loan into his name and did not provide alternative solutions.

This development presented Michael with the prospect of needing to sell the property to satisfy the outstanding debt.