Reverse mortgage - price comparison and complete loan guide

Those who have already reached the age of 60 know - life really does not end at this age, and to be honest, it is just beginning. From the height of our age, we already know a lot - what is important in life, what is worth investing energy and attention in and how to divide our precious time between work, children, grandchildren, leisure and relationships. This is the age to celebrate life, enjoy what we have built with our own hands and enjoy our financial stability.

However, financial stability is an important thing when you are young and growing up, but as more and more seniors are discovering, financial well-being and standard of living are the name of the game in later age. Well, how do we increase sources of income when we are already adults, and where can we draw available money to increase our economic well-being here and now?

One of the common financial instruments that have gained momentum for these purposes in recent years is the reverse mortgage.

It is actually a loan for any purpose intended exclusively for homeowners who are 60 years of age or older.

In this route, individuals and couples who own an apartment or house worth a million shekels or more, can receive a loan based on those assets (a lien). It is important to note - the property remains fully owned by the borrower, and is only used as collateral to repay the loan.

If a young person gets a loan to buy a house, an older person can get a loan for the house they already own.

This is a loan with very good terms, and it is stable as it is based on an existing property. Borrowers use these loans for a variety of purposes - closing old debts; world trips; cosmetic and medical treatments; And even purchasing an additional property for investment.

Almost all insurance companies and banks offer reverse mortgage routes.

How do you know where it is best to make the move, and which company offers the most attractive conditions at that moment? A reverse mortgage is an excellent loan, but it includes a lot of "small letters". So that you don't have to dig through every offer, the national collective company - an insurance price comparison agency that works for the welfare of its members - has developed a price comparison model in the reverse mortgage field.

You are invited to leave details on the website - and then the team of the national collective will make sure that you receive offers that are especially profitable for you according to several parameters - such as the age of the borrower, the value of the property in his possession, the family status, the length of the life of the loan, the purpose of the funds and more.

You can get all the details and make a price comparison and compare the conditions of a loan / reverse mortgage insurance.

Since the collective constitutes a significant purchasing power that accompanies many of its customers in taking out a reverse mortgage, the insurance companies take care of particularly attractive offers for those members.

What do the insurance companies offer?

If so, taking this loan is actually using an existing and stable asset for liquid and available money here and now. The Israeli insurance companies realized the potential inherent in this model - which is a WIN-WIN for both the company and the borrower. The company provides a loan to older and financially stable customers, with real and tangible security and benefits from the interest; And the client gets access to the money immediately, without selling the house.

Ayalon, Migdal and Kalel Insurance have attractive reverse mortgage products. The conditions vary from company to company, and of course also from customer to customer - according to age, property value, etc. These are some of the prominent basic conditions offered by each company.

• Ayalon- The Ayalon insurance company offers a loan starting at NIS 100,000, based on a residential property owned by the borrowers. The minimum property value on which Ayalon will perform a reverse mortgage is NIS 1.5 million for owners of a single property. As with all insurance companies, Ayalon does not require monthly payments to repay the loan, but offers a flexible repayment model for maximum welfare of the borrowers. For example, you can pay the interest, or principal and interest, throughout the period and even switch between the tracks.

  The interest rate for the "balloon" route in Ayalon is now 5.2%, and for other routes the customers pay reduced interest rates according to the terms of the deal. Apart from the interest, the loan costs at Ayalon include account opening fees;

• rule- In the insurance rule, the maximum loan amount that can be received in the reverse mortgage route is determined by age - from 15% of the value of the house for borrowers aged 60 to 50% of its value for borrowers aged 90.

  As in most companies, in general the loan is repaid by the borrowers in a flexible manner, whenever they choose, and after the death of the last borrower. Here, too, there is no requirement for monthly repayments, and the loan is repayable immediately only when the house is sold or in case of death.

• Harel- Beharel Insurance offers in their reverse mortgage route called "60+" - a fixed interest rate linked to an index, the current rate of which is 3.5%. Harel allows two interest rates to choose from - the "balloon" rate, which means repayment at the end of the loan period; and the Grace route, which means payment of only interest and principal at the end of the loan period.

  According to the examination of the borrower's financial situation, Harel allows an easy transition between the routes at any time. Here too, the maximum loan amount is determined according to age levels, and the rate is from 15% of the home's value for 60-year-old borrowers to 50% of its value for 90-year-old borrowers, according to the age of the younger borrower.

The national collectiveCan arrange for you, aged 60 plus with an asset of one million shekels or more, the most profitable deal for a reverse mortgage. Want to learn more?