In cooperation with Bank Mizrahi Tefahot
The community of people aged 60 and over is growing year by year, this growth gives birth to quite a few creative solutions that are intended for the crowd of retirees who want to enjoy a good standard of living during the retirement period, but this period is also accompanied by many dilemmas: "How do we do it? What standard of living can we afford For ourselves and will the money be enough for the rest of our lives... as long as we don't fall into the burden." Practically, upon retirement, for the large majority of retirees, the main sources of funding are pension savings (provident funds, pension funds and executive insurance) and the National Insurance benefits.
For the most part, these sources do not cover the wants and needs of retirees and are certainly less suitable when it is necessary to finance a "heavy" one-time expense.
This fact requires them to compromise or try to find additional funding sources. What are these sources?
For example, to go for the classic option of taking a loan, but this option is problematic since it involves regular repayments that often burden the monthly expenses and therefore puts the borrowers into oppressive debt at this stage of their lives.
Another option is to partially return to the labor market, although it is not always successful nor is it necessarily suitable for everyone.
After all these years, most retirees are interested in simply resting and spending time and certainly not going back to work. So what do we do?
The majority reduce expenses, reduce the small pleasures and give up on the fulfillment of dreams.
KANTAR survey findings : What do you give up when you retire?
A pension mortgage - a new financing solution with maximum flexibility
Mizrahi Tefahot's pension mortgage is a flexible banking alternative to the "reverse mortgage", which allows those 60 and older to enjoy an improved standard of living through a flexible financing plan. First of all, it must be remembered that the private property, the house, is the largest financial resource in the possession of its owner.
The house does not generate money, but it can be "converted" to generate current income, while retaining ownership of it.
How exactly does it work? While in a common mortgage you pledge an asset to the bank in exchange for a loan to purchase an apartment, in a pension mortgage you pledge the existing property to the bank to guarantee a loan for any need you define. This loan is given for a long period of up to 30 years, does not necessarily require regular repayments and allows them to be postponed for a period of up to 15 years.
That is, you will be able to receive a large sum at once or benefit for a long period from a monthly supplement to your income, without having to bear the burden of a monthly repayment for a long period.
After this period, of the reduction of the payments or their complete postponement,
The loan can be repaid in regular monthly payments or in a one-time repayment ("balloon"). Her pension mortgage allows for maximum flexibility and customization to your needs: you can choose between a route that provides a large lump sum for the purpose of financing a large one-time expense, helping children, closing previous obligations Or even as a source of funding for transitioning to sheltered housing, and a path of a fixed or flexible monthly supplement to income, which allows you to increase your monthly income by an amount that you define in advance for the purpose of financing current expenses, upgrading the standard of living - or for anything you want.
It is also possible to combine the two routes. In the monthly supplement route, there are 2 options - "fixed monthly income supplement" - in which you can receive a fixed amount every month (up to 15 years) that you define in advance or alternatively choose a "flexible monthly income supplement" - which you decide Each month, how much would you like to use out of the amount we defined in advance - the full amount or part of it.
In any case, it is important that you know that the future refund will only be against the amount you will actually use,
Or in simple words - you didn't take advantage, you didn't pay! The product is offered to customers of all banks.
If you would like more information - you can leave us details here or call us at *8860. We will be happy to talk with you in cooperation with the children and build a solution for you that will suit you personally. The above is for information purposes only and does not constitute an offer to grant the loan.
Providing any type of credit subject to the bank's discretion.
Failure to meet the repayment of the loan may result in arrears interest being charged and enforcement procedures
In cooperation with Bank Mizrahi Tefahot
