Israel Reverse Mortgage
By Shlomy Golovinski
Beit Maniv and Israel Discount Bank have launched a cooperative venture offering reverse mortgages to those 67 years and older. Pensioners who suffer from cash-flow problems but own homes worth $200,000 or more in popular areas will be able to take a loan against their homes.
Although new to Israel, reverse mortgages have been available abroad for years. Those taking loans would have to pay back the principal and interest in full only if they were to move out of their homes for any reason.
The loans would be available for 20-40 percent of the home's value, and would charge interest of 6.9 percent, with CPI linkage, significantly higher than regular mortgages.
Upon death, Maniv would collect the balance of the mortgage through sale of the home.
Giora Ofer, CEO of Discount, which owns 20 percent of Maniv, said that the financial initiative meets a real social dilemma facing pensioners.
Source: Haaretz
Visit now for your free reverse mortgage analysis
|
|
