Reverse mortgage is gaining popularity all over the world. Banks provide monthly allowance to retirees in exchange for the right to inherit the property. Such schemes are widespread in the EU and North America, writes ee24.com citing gdeinvestirati.com.
In many former socialist countries in Eastern Europe and the Balkans, for example in Serbia, the reverse mortgag is not offered by banks. Older people there prefer to survive on a pension and deprive themselves, but to leave their property in Serbia for children and grandchildren.
Dejan Vučinić, the head of department in Societe Generale, explains that in most of countries the reverse mortgage is issued to people over the age of 62. On the one hand, seniors need support the most. On the other, the older person will be at the time of entry into the program, the more money he will receive monthly.