More and more banks are offering owners of retired properties the opportunity to supplement their pensions with a so-called reverse mortgage. The principle is simple: An unencumbered property is mortgaged in the form of a one-time payment or a lifelong monthly pension. The owner and possibly his partner receive a lifelong registered right of residence. After the death of the last owner of the right of ownership, the property then becomes the property of the bank.
The amount of the pension or one-off payment may vary depending on the value of the property and the age of the owner. The younger this is at the conclusion of the loan contract, the lower the maximum exposure limit. When measuring life expectancy, the mortality tables are used, which are also used in life insurance.
The advantage of the reverse mortgage is obvious: more and more pensioners do not have an adequate income in old age despite a completely paid-up real estate, because the benefits of the statutory pension insurance are in many cases too low , With the reverse mortgage, the pension can be improved quickly, without the sale of the beloved home is necessary.
Banks, of course, can earn a lot in the business.
The market for reverse mortgages in Germany is still in its infancy and there is virtually no transparency. Experts therefore recommend comparing the offers of as many banks as possible before signing under a loan agreement. Since most money houses do not actively advertise reverse mortgages and make offers only on request, this takes a certain amount of time.
The model is particularly attractive for owners who have no direct descendants (heirs). The own assets tied up in the property can be fully consumed during their lifetime. If children are present, this can change and the mortgaging of the property can become an irritant. However, if the offspring have sufficient income, it is conceivable to find a family-internal solution: the spit-pings pay their parents a certain amount each month and inherit the unpaid real estate.
If a property encumbered by reverse mortgages falls into the possession of the bank after the death of the owner, the offspring is free to take over the mortgage and the house.