Please note: advisory meetings and the service itself are provided in Hebrew only. These guides are here so you can read and understand the topic in your own language.
A reverse mortgage is intended for older homeowners who want money without paying a monthly installment. The loan is given against the apartment, and interest accumulates on the debt. The loan is usually repaid when the apartment is sold, for example after death.
Who does it suit?
- Older homeowners (usually from age 60, depending on the lender).
- Who need money to improve their quality of life, for medical care or to help their children.
- Who do not have enough income for a monthly payment.
How much can you get?
The amount depends on age and the value of the apartment: the older you are, the higher the percentage you can receive. In any case it is a part of the apartment's value, not all of it.
What is the real price?
Interest accumulates, and it is usually also linked to the CPI. Over many years the debt can grow a lot, and a large part of the inheritance will go to repaying the loan.
Questions to ask before signing
- What is the rate, and is it linked?
- What happens if a spouse stays living in the apartment?
- Can you repay early, and at what cost?
- What do the heirs receive, and what do they need to do?
Elia's tip: A reverse mortgage is a family decision. It is worth involving your children before signing, to avoid surprises in the future.
More: mortgages at an older age.
This article is general information and is not personal advice or a commitment. Rules, interest rates and taxes change from time to time, so check the current situation and your own figures before any decision.