Rebuilding After Tragedy: Laura’s Path From Financial Hardship To Hope

A Journey Through Loss

Laura Hupp is a 49-year-old single applicant who has assumed the role of primary caregiver for her deceased partner’s granddaughter. With a 15-year tenure as a Senior Sales Representative, she earns an annual salary of $133,997, along with a car allowance of $18,000. In addition, she receives $499.25 per fortnight from DHS child protection to support the care of the child, who is 11 years old and will remain under her guardianship until adulthood.

The passing of her partner last September brought emotional and financial challenges. Laura faced a sudden increase in financial responsibilities, particularly due to a delay in accessing her partner’s superannuation funds. This led to difficulties in managing day-to-day expenses, personal loans, and credit-card debts. The financial strain, coupled with the emotional toll of her loss, resulted in a drop in her credit score, with financial hardship noted on her credit report during this difficult period.

The Challenges Ahead

In the months following her partner’s death, Laura turned to credit facilities, including personal loans and credit cards, to manage her immediate financial obligations. While these steps were necessary, they increased her financial liabilities, further impacting her credit score, which had fallen to 446 by the time she sought help.

A Plan For Recovery

Home Loan Experts Senior Mortgage Broker Vivienne Than took on Laura as her client, fully aware of the challenges she faced. Upon reviewing her financial history, it became clear that Laura had endured a particularly difficult few months, with financial hardship clearly noted on her credit report.

Understanding her needs and the complexities of her financial circumstances, Vivienne proposed a mortgage top-up on her existing owner-occupied property.
This top-up aimed to:

• Consolidate non-mortgage loans/commitments: By rolling over her personal debts and credit-card balances into one home loan, Vivienne helped reduce Laura’s monthly repayments, thereby improving her cash flow.
• Fund non-structural renovations: An additional $44,100 was allocated for non-structural renovations to Laura’s property. While it might have seemed counterintuitive to increase the loan amount for someone already facing financial difficulties, the cashout for renovations was a strategic decision. The non-structural renovations increased the value of her property, providing long-term financial benefits. By enhancing the property’s value, she not only secured a better living environment but also increased her equity, which is beneficial for her future financial security. This approach ensured that her immediate financial stress was alleviated while setting her up for a more stable and prosperous future.

Given the client’s age of 49, Vivienne had to carefully consider the loan term. Typically, lenders prefer shorter loan terms for older applicants, to ensure the loan is repaid before retirement. She worked with the lender to find a term that balanced Laura’s ability to manage repayments with her long-term financial security.

The Benefits

For Laura Hupp, consolidating $114,900 of non-mortgage debt – including $73,500 in a personal loan, $19,600 in a car loan, $12,300 under other obligations, and $9500 on a credit card – into a single home loan brought immense relief. This step simplified her financial obligations and reduced her repayment burden, making her situation more manageable. The planned renovations to her home will also increase its value, helping to secure a more stable future for both her and her dependant.

Let’s Walk This Path Together

Life can bring unexpected challenges, but you don’t have to face them alone. At Home Loan Experts, we’re here to listen, understand, and offer the support you need for financial stability and peace of mind.

Call us on 1300 889 743 or fill out our free online assessment form. Together, we can create a brighter future for you and your loved ones.