Minister wants "reverse mortgage" 25/01/2007 00:00
25 January 2007
Minister for the Economy Marc Verwilghen wants to introduce “reverse mortgages” to enable elderly homeowners to convert some of the equity in their homes into income without having to sell their home.
Verwilghen is working with the Credit Trade Association (BVK) and the Bank Commission to draw up an amendment to legislation.
Senior citizens who need extra income to cover healthcare costs are sometimes forced to sell their homes now. A reverse mortgage can prevent this from being necessary, says Verwilghen.
The minister says that this financial product meets a real need of the ageing population.
These kinds of mortgages are already available in the UK and the US. France and the Netherlands are also currently working on introducing the product.
The mortgage act must be amended before this new financial product is possible in Belgium. Verwilghen will also consult consumer organisations about the plan.
[Copyright Expatica 2007]
Subject: Belgian news
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