Mortgage loan Life annuity: who can request it?

Mortgage loan Life annuity: who can request it?

Spreading abroad for several years (as a reverse mortgage) and then introduced also in Italy, the annuity mortgage loan is a form of loan reserved for the over 60 owners of a property not encumbered by a mortgage.

How does the annuity mortgage loan work ? In practice, a homeowner who has completed at least 60 years, without a maximum age limit, is granted a loan with a variable amount (from 15% to 55% of the value of the property depending on different factors) in exchange for a mortgage on one’s home, with repayment of the principal and interest payable by the heirs after the death of the holder. If the heirs do not want or are unable to return the amount, the bank or other creditor institution can claim it by selling the house and taking the proceeds.

From the moment the contract is signed until the death of the beneficiary, the property subject to an annuity mortgage loan cannot be sold, cannot be subjected to further mortgage or even leased to third parties, under penalty of forfeiture of the benefit of the term. The holder of the loan can take on the gradual repayment of the interest and expenses only.

Having said that, let’s see more in detail who can apply for the lifetime mortgage loan. As a note from the ministry explains well, all natural persons who are 60 years of age and have a building for residential purposes can access this particular type of financing. Spouses (including those who are civilly connected) and cohabitants for at least five years, must both sign the related loan agreement even if the property is owned by only one, provided however that the other partner also has reached 60 years. Obviously, as with any other form of credit, these requirements do not automatically give the right to the disbursement of the annuity mortgage loan, which is granted only at the discretion of the bank.

Finally, we remind you that at the time of signing the contract, the law provides for the signing of a compulsory home insurance on the mortgaged and fire type property.

Loan estimate of 10000 euros

Loan estimate of 10000 euros

 

Financial: Sumple Loan
Product: Personal Loan
TAN Fixed: 4.25%
APR: 4.44%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.117

Monthly installment € 185, 28 Feasibility check 

Financial: Ultranix
Product: Personal Loan
TAN Fixed: 5.16%
APR: 6.70%
Loan duration: 60 months
Amount Financed: € 10.146
Total due: € 11.735

Monthly installment € 193, 19 Feasibility check 

Financial: Astrofinance
Product: “Your Projects” Credit
TAN Fixed: 6.01%
APR: 6.18%
Loan duration: 60 months
Amount Financed: € 10,000
Total due: € 11.602

 

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