
The lifetime mortgage is an innovative financial solution that offers immediate liquidity to elderly homeowners while allowing them to keep their property. In Italy, this financial instrument was introduced by Law 44 of 2015, yet its adoption remains limited. Unimpresa highlights the need to relaunch it, emphasizing the numerous advantages for both citizens and financial institutions.
A financial lifeline for seniors and their families
This financing option enables over-65s to convert part of their home’s value into financial resources, without selling or vacating the property. The funds obtained can be used to:
- cover medical expenses or improve quality of life;
- support children’s or grandchildren’s education and projects;
- finance home renovations or fulfill lifelong travel dreams.
Unlike selling a bare ownership, which permanently removes the property from heirs, the lifetime mortgage allows the home to remain in the family. Heirs can either repay the loan and keep the property or sell it to settle the debt.
Benefits for banks
For the banking sector, relaunching the lifetime mortgage presents a strategic opportunity. The key benefits include:
- expanding market opportunities, targeting a growing population of senior homeowners;
- higher profitability, as lifetime mortgage rates are generally higher than traditional mortgages;
- reduced risk, as loans are secured by first-degree mortgages;
- improved reputation, positioning banks as socially responsible institutions.
A financial product worth promoting
Despite its advantages, the lifetime mortgage remains underutilized. Unimpresa urges banks to include it as a core financial product and actively educate customers through awareness campaigns. Additionally, collaboration with consumer associations and public institutions could increase public knowledge about this financial tool.
This mortgage could drive a financial revolution in the Italian credit market, supporting both economic growth and financial stability for many families.
What do you think? Could the lifetime mortgage be a solution for you or your loved ones? Share your thoughts in the comment section below!