• This type of loan allows home owners over 60 to mortgage their property for a sum calculated according to their age and value of the property

• A new family and intergenerational solidarity financial instrument: the bank involves children in the choice

• A potential market of more than 8 million home owners over the age of sixty

Turin, 19 May 2016 - Intesa Sanpaolo is one of the first banks in Italy to offer Lifetime Mortgage Loans, an opportunity that is now available thanks to the introduction of recent decrees, specifically to home owners over the age of 60. A lifetime mortgage loan allows people over 60 to mortgage their home for a sum calculated according to their age and value of the property. Lifetime Mortgage Loans, which are very common in the Anglo-Saxon world, are not comparable to bare ownership since, unlike the latter, the owner retains ownership of the property. As additional protection, Intesa Sanpaolo has established that children should be involved in the choice, by asking them to sign a “letter of awareness”. The customer may in any case pay off the loan at any time, without penalties.

There are 8 million home owners in Italy over the age of 65. These are assets that are released through the Lifetime Mortgage Loan, to become immediate resources that may be used for personal use or to help children. With this instrument, Intesa Sanpaolo offers Italian families a new financial and intergenerational solidarity solution, which allows people, for example, to help their children directly, by giving them a part of their future inheritance currently tied up in the home and indirectly, by not burdening their finances with support towards extraordinary or recurring expenses, such as long-term care, property maintenance, etc.

On the death of the mortgage holder or co-holder spouse, the heirs will have 12 months in which to decide whether to redeem the house or allow the bank to sell it, with the guarantee that they will receive any extra amounts. If the property is sold for an amount under the debt, the bank bears the difference.
The amount of the loan depends on the age of the youngest applicant, and ranges from a minimum of 30,000 Euro to a maximum of 400,000 Euro. The value of the home is estimated through an appraisal during which the conditions and real estate context are taken into account. By way of example, a home valued at 100,000 euro may allow the home owner to obtain a lifetime mortgage loan of more than 54,000 Euro, if the home owner is over 80 years of age.

For information

Intesa Sanpaolo 
Media Relations
Banca dei Territori and Local Media
Tel. +39 0115556652