The elderly in the country often have large assets in their homes that are not used for anything special. Statistics say that almost every third person over the age of 55 owns their home and has no loans.
This value can be a lot of fun if you had it in the form of cash and therefore there are special loans called senior loans and these are about to increase.
A senior loan is a loan on a home where you do not pay any interest on an ongoing basis, but instead it is added to the debt. The entire loan amount plus interest is then repaid when the house is sold for one reason or another. This can lead to a life-long loan but no major risks. For a borrower to be able to borrow more than the original debt and interest rate exceeds the value of the house.
Something I think is quite nice
Children and grandchildren may not like it but I have to say that I think it is a pretty nice way to borrow money. For example, the elderly can indulge in a trip or the like, which can certainly be a good way to spend retirement time. So increasing these loans is something I am happy about. Then, of course, you should not borrow too much money or anything like that, which of course applies to all loans. But to live a little extra can be worth after years of working.
However, one thing to look out for is what the different lenders call a senior loan.
The way I mentioned above is the way most serious lenders look at the whole thing and as I think it should be. You should therefore check carefully what a loan is before you take out a possible senior loan so that it is not the question of any investment to be repaid after a certain time. Which can lead to problems if the house loses value or the investment goes bad.