Seniors are increasingly using reverse mortgages. Especially in one region

Seniors are increasingly using reverse mortgages.  Especially in one region

411.6 thousand PLN is the average value of real estate entrusted to the management of mortgage funds in exchange for a life annuity – reports the Association of Financial Companies (ZPF). Most such properties are in Mazovia.

Reverse mortgage is the name of a service in which a financial institution pays a lifetime annuity to a client in exchange for transferring ownership of the property to it. At the same time, the client receives a notarial guarantee of lifelong residence in the indicated premises

Last year, mortgage funds associated with the Association of Financial Companies (ZPF) paid out annuities to clients in the total amount of PLN 4.77 million. That's 53.1 percent. more than in 2022.

Reverse mortgage. Who uses it most often?

ZPF data also shows that in the period 2010-2023, seniors using reverse mortgages received over PLN 34 million. At the end of last year, mortgage funds managed real estate worth PLN 158.5 million, which means an increase of 6.2%. on an annual basis. The average size of the property that the client transfers to the fund under the reverse mortgage agreement is 51.7 sq m, and its average value is PLN 411,600. zloty.

Who most often decides to cooperate with mortgage funds? ZPF data shows that these are people aged 75-80. The average age of seniors using a reverse mortgage was 76.6 years last year and was similar to the result from 2022.

The majority of properties managed by mortgage funds are located in the Masovian Voivodeship (29.1%). The next places were taken by Pomerania (11.9%), and the Lower Silesian and Silesian voivodeships (9.1% each).

– The awareness that the future pension will probably be low may be a factor that will cause more employees to voluntarily stay in the labor market longer to increase their pension or to use other solutions offered by financial institutions – comments Marcin Czugan, president of ZPF.

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