April 22, 2024

Brighton Journal

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They propose creating a “reverse loan” system for retirees

They propose creating a “reverse loan” system for retirees

The municipal council will begin discussing the possibility Rosario Municipal Bank offers “Reverse Loans”.. About A financial instrument aimed at senior citizens In whose name is the property? is the objective They can get retirement supplement. The scheme should be introduced in the first ordinary session of the year. The coming 21st is expected to be Thursday. Once this procedure is formalized, it will be discussed in the Government and Budget and Finance Committees.

“Generally, This is a mortgage loan Aimed at seniors, it – like a traditional mortgage – allows homeowners to borrow against their home as collateral. So A retiree or pensioner claiming the loan will get an additional amount every month for their pension or retirement assets,” explained Manuel Ciuto, its author, in the program's arguments.

With respect Earnings to be received By the applicants, the details of the initiative will be released Calculation of the value of the mortgaged property and the life expectancy of the owner and the rate of interest applicable at the time of subscription thereof. The plan clarifies that “other parameters that the authority applying this standard deems appropriate may be added by regulation without affecting the scope of the standard.”

In readings from the speech, the Socialist councilor justified the initiative by saying that a high percentage of retirees and pensioners receive minimum incomes “and the high rate of inflation makes those meager incomes worse.”

“During the retirement stage of a person's life, it is common for real income to decline. “The reality is that many older adults believe economic decline is inevitable, depending on their active lives and their family structure and/or the structure and characteristics of government responses—translated into public policies aimed at older adults,” he said.

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It is also established in writing The additional income continues till the death of the applicant. At that time the bank was mandatory Gives the heirs an opportunity to cancel the loan. In that case Not in position To counter that charge, the loan company Continue to sell property to pay off debt If there is any remaining money, give it to family members.

According to the plan, despite that There is no national law regulating this type of loan in Argentina.A topic debated in Congress and in other Mercosur countries.

“In Chile we are already seeing the implementation of the reverse mortgage. In Uruguay, plans to incorporate this number are being considered in the parliament and taken as a model implemented in Spain. Similarly in Brazil,
“Although this figure is not present today, they are already thinking of introducing the discussion of reverse mortgage in their agenda as it has been identified as a possible solution for a country's population suffering from the impact of aging,” he explained.