The home loan guarantee, better known as a mortgage life loan, is a credit formula that has raised considerable controversy in our country since its introduction into the law, which took place in 2015 with law number 44.
It is, in fact, a formula that according to many observers would be dangerously unbalanced in favor of the body that delivers the money, going in practice to retrace the limits of bare ownership in certain aspects and adding other negative elements. Precisely for this reason, it becomes necessary to get the best information before opting for the adoption of a similar loan.
What home-based loans are and how they work
The loan with home guarantee, better known as a mortgage loan for life is a formula designed specifically for users who are at least 60 years of age and who intend to find additional liquidity by offering a home in exchange for which a house is turned on. mortgage.
The interested bank, in turn, corresponds a part of the market value of the house by carving out precise rights on its property. The sum in question varies on the basis of the appraisal carried out for the assessment and in particular, can attest to:
- 15% for those who are 60 or slightly older, growing with increasing age;
- between 50 and 55% where the age is around 90%.
However, the calculation of the mortgage loan varies according to the person who proposes it, based on the policy adopted in this regard, which may depend on various types of factors.
The difference with the bare ownership
As you can see, the lifetime mortgage loan is reminiscent in many ways of bare ownership. The substantial difference between the two formulas is that in this case, the possession of the house remains with the subject who asks for it, giving the possibility to redeem the mortgage to his descendants, but only once the death has occurred.
However, the reduced convenience of the operation has, over time, given rise to considerable doubts among the experts, as the heirs have the task of returning the sums received by the beneficiary, choosing between three options:
1) the repayment of the loan, in order to redeem the property, communicating the decision taken no later than one year after the death of the beneficiary;
2) the sale of the property, the proceeds of which will cover part of the amount due to the bank and the remainder will be divided among the heirs. However, the operation must guarantee both the same by ensuring that the amount of the residual debt does not exceed that of the sale, that the purchaser making the pending disputes that may hinder the sale vain;
3) transfer the property to the bank, which can, in turn, sell it without having entrusted the task of evaluating it to an expert in independent theory. Once the sale is implemented, the bank will retain the part of the proceeds that it is entitled to, paying the remainder to the heirs.
Early termination of the annuity
Home loan guarantee
It can also happen that the mortgage annuity is terminated early. An eventuality that can occur when:
1) the owner of the annuity dies and the heirs leave the building to the bank, which can proceed with the sale to pay off the remaining debt;
2) with the beneficiary still alive, but unable to pay the monthly installments consisting of interest and expenses, 7 times, even if not consecutive. To trigger the definition of delay, payment must not have taken place between the 30th and 180th day from the agreed deadline;
3) where the partial or total transfer of ownership of the property given as a guarantee or of the other real or beneficial rights imposed on it occurs;
4) where acts are carried out whose effect is to significantly limit their value.
Once 12 months have elapsed from the occurrence of one of the conditions mentioned without the beneficiary having repaid the loan received, the lender can proceed with the sale of the property at market price, to which 15% must be reduced. for each year up to the time of sale and use the proceeds to cover the remaining credit.
When considering an instrument such as an annuity mortgage loan, account must also be taken of the tax treatment to which it is subjected. Which is the specific case involves some facilitation, that is:
- exemption from stamp duty, register, cadastral and mortgage taxes ;
- exemptions from taxes related to government concessions, but simultaneous payment of a substitute tax equal to 0.25% of the amount disbursed by the counterparty if it is a first home and 2% in the opposite case.
For the entire duration of the loan, the beneficiary must then continue to pay the taxes due in the event that the property in question is not first home or is, but returning to the category of luxury homes.
Does the annuity mortgage loan work?
Those who apply for the mortgage loan do so naturally to have additional liquidity, perhaps driven by the reduction in their income capacity. However, this is a possibility that many analysts indicate as not very convenient, due to the high costs that characterize the mortgage loan on the home.
Suffice it to say in this regard that the mortgage loan proposals of institutions such as BNL or Unicredit offer interest rates that currently travel at about twice those applied to traditional mortgage loans.
A characteristic that the experts assign mainly to two factors: the uncertainty on the value of the home at the time when the sale will take place, which could take place even after decades and the financial and managerial charges that the bank must undertake to carry it out.
Precisely for this reason, the sum that is granted by the institutions that have adopted this formula is to be considered quite contained, ultimately making the product itself unattractive to the target audience, ie the elderly owners of homes.
The exponential growth of the debt deriving from the annual capitalization of the interest on the sum disbursed must then be taken into consideration, which above all in the case of a long life expectancy can finally erode in a fairly narrow period of time the entire value of the property offered in warranty.
The same value in question is then determined by an expert appointed by the bank, which will inevitably lead to favoring the subject with whom he usually collaborates. Moreover, in the case in which the buyers are missing in the first phase, the price established by the appraisal is reduced by 15% per year.