What is an inverted mortgage loan?

Almost everyone knows what a mortgage is. Today we want to deal with another topic related to real estate and finance. Many people think that this is a way to improve your home budget! Do you know what an inverted mortgage is? Learn more details about this solution.

Basic information about reverse mortgage

Basic information about reverse mortgage

A reverse mortgage is a specific type of financial support that is regulated by the 2014 Act. The contract signed in the case of using a reverse mortgage obliges the bank to pay the borrower a set amount . The amount is transferred for an indefinite period. It can be a one-time payment of receivables or cyclical financial support. It is repaid after the death of the owner of the flat.

He, in turn, is obliged to secure the repayment of this sum with independent interest and other real estate costs. After concluding the relevant agreement, the bank becomes the mortgage creditor in the land and mortgage register. Despite this, the recipient remains the owner.

The heirs, despite the fact that the owner of the apartment has decided on a reverse mortgage, do not lose their rights to the apartment or house. They can repay the debt.

Who is the reverse mortgage for?

Who is the reverse mortgage for?

The main condition for using an inverted mortgage is owning or co- owning the property . Any natural person has the right to use this support. It is worth remembering that when applying for a reverse mortgage, we will not be checked at BIK. By design, it is a solution targeted at older people and retirees. Most children use it.

Anyone interested in the support in question will receive an information form about the bank they come to. They know all the information they need about the expected amount of the reverse mortgage, how money will be paid, any additional costs and repayment, as well as the rights and obligations arising from signing the contract.

Situation of heirs


As we mentioned earlier, heirs are not deprived of the right to real estate if they use a reverse mortgage. What happens if they do not want to repay the debt? They are then obliged to transfer ownership of the property to the bank . If the property is worth increasing until then, the bank will pay the difference in amount.

Have you heard of reverse mortgage before? What do you think about this solution? We believe that it is worth getting to know this type of solution and be up to date. For now, reverse mortgage in Poland is not a very popular solution, but interest in this support is still growing. If you are interested in a mortgage or other financial support, we invite you to use our loan comparator.