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Reverse Mortgage Loans

Retirement should provide you with some of the most enjoyable years of you life, now that you have more time to do the things you’ve always wanted to do. However, living on a fixed income or pension does not allow you easily afford the retirement lifestyle you have dreamt about. Mortgage One has a lending solutions to help you achieve your dreams.

Mortgage One would like to take this opportunity to introduce the Equity Release Mortgage. This product has been designed to help people over 60 who own their own home, to access the wealth in your home so you’ll have more options in your retirement.

Here’s Living Proof

Meet the Browns. Sam (64) and Angela (60) own their own home which is valued at $400,000. Sam a recently retired production manager and Angela, a former nurse, have always wanted a new kitchen and bathroom and take a cruise around the Caribbean, so how did Mortgage One help them?

After discussing their options with their children, financial advisor, accountant and Centrelink, Sam and Anglia applied for a $60,000 equity release loan. Neither the initial loan amount nor the interest on the loan needs to be repaid until the home is sold or passes to your estate.

The graph above illustrates how there property may appreciate in value over 20 years (blue line) and how their original loan amount of $60,000 increases as the interest and fees accumulates (red line). After 20 years Sam and Anglia have both decided to sell the family home and move into a nearby retirement village. They sell their home for $720,000 and repay $308,000, leaving them with $412,000.

Please be aware the example above assumes Angela is the youngest borrower at 60 years of age. We’re assured that over the 20 year period, house prices will grow at an average of 3% per annum and the average variable interest rate will be 8.15% over the 20 year term. This is an example only for illustration purposes. No guarantees can be provided about these assumptions.