In simple terms, equity release gives the opportunity to pensioners to take out a loan against their residence in exchange for regular income. During the term of the loan, you have the possibility of living in your residence without the need of moving to another residence. The loan will be repaid when the property is sold.
You are eligible for Equity Release scheme if you are a pensioner and you are the owner of the property you are residing in. Before you enter into an equity release financial product transaction also consider other options for example downsizing to a cheaper property or using existing savings. If you are in doubt, always seek independent advice from a lawyer and/or accountant duly authorised to practice in Malta.
Banks or financial institutions licensed by the MFSA can offer equity release financial products to pensioners. The Bank or financial institutions is required to provide you with personalised information by means of an Information Document before you enter into the transaction.
Since Equity Release scheme is basically a long-term loan you need to consider all related charges and fees that you may incur. Ask the Bank or Financial Institutions to provide you with information on the fees and charges you will incur before you enter into the equity release financial products as well as information on ongoing fees.
Remember – It is your right to receive all the information you need to make an informed decision!
