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Mortgage Life Loan: Signed the Implementing Decree

Mortgage Life Loan: Signed the Implementing Decree. The new mortgage loan has become operational. The Minister of Economic Development Federica Guidi signed the decree implementing the law which, among other things, has widened the audience of users from 65 to 60 years. In addition, the financing is no longer extinguished only by the death of the owner but also by the transfer, in whole or in part, of the real rights of enjoyment on the property given in guarantee.

Mortgage Life Loan: Signed the Implementing Decree

Life Loan How it Works

By borrowing the international experience of so-called lifetime mortgages, this financial instrument has been relaunched, which is characterized by being guaranteed by a residential real estate property that allows the owner to convert part of the value of the property into cash in order to meet the consumption needs without leaving the debt or to repay the capital and interest on the loan until the expiry of the contract. Mortgage life loan is therefore an alternative to the sale of the property through bare property, a tool much used in recent years by an increasing proportion of people in old age.

Vital Loan News

Among the novelties, in addition to the lowering of age, there is the fact that the financing is not extinguished only by the death of the owner but also if the real rights of enjoyment on the debt granted are transferred in all or part: this implies the possibility at any time for the consumer to pay off the loan in advance and sell or transfer the real rights on the property to third parties. In practice, the full availability or ownership of the property remains in the hands of the financed person.

Replacement Tax Life Loan

In addition, interest can be repaid all at maturity or at set deadlines. If you choose the repayment formula at maturity, nothing is due to the bank during the duration of the loan. In this case, there is no possibility of any insolvencies related to the financing. Finally, a strict procedure for the sale of the house is defined in order to repay it at the market price. In this way, the surplus part of the remaining capital of the fund is intended for the heirs who can thus benefit from the possible positive trend in the prices of the property. Finally, from a tax point of view, the application of the subsidised 0.25 replacement tax has been confirmed.

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