What makes our reverse annuity mortgage different
The Reverse annuity mortgage is a product that combines a reverse mortgage with a life annuity insurance policy, intended for people over 65 years, owners of their main residence and who, with the mortgage guarantee of the latter, allows them to obtain a monthly life annuity, while retaining their use and ownership.
Once the last account holder has passed away, his/her heirs have a period of 12 months to pay the debt accumulated until that time.
How our reverse annuity mortgage works
In the first stage, the income is obtained from credit.
In the second stage and until the death of the last of the holders, it is obtained from the deferred Life Annuity initially taken out. The ownership of the property is not transferred.
The owners can continue to live in the property.
If in the future, you could no longer live in your home, you could rent it, subject to approval by the Company, to cover the cost of a similar residence or centre.
Upon death, the heirs will receive the difference between the value of the home and the accumulated debt
Although credit is always received in the form of income, for all transactions, there is an initial provision for payment of the set-up fees and for payment of the premium of the Life Annuity Insurance. This means that the customer will not have to make any payments.
Optionally, and with certain limits, you can request an amount for other destinations. For example:
- Cancel debts (mandatory if they are taxed on the property).
- Renovating the property and others.
Get a supplement to your pension, which allows you to enjoy your new life as you planned when you retire.
Practical information
Bank of Spain registration number: 8235
Tax ID: A48409023
Who we are
Occident Hipotecaria, part of the Catalana Occidente Group, is a Credit Financial Institution authorised by the Bank of Spain. Its activity focuses on mortgage financing, providing products tailored to the needs of individual and family clients, backed by the solvency and experience of a leading insurance and financial group.
Corporate purpose
The company’s corporate purpose is to carry out mortgage lending and credit operations.
Products we market
Occident Hipotecaria’s lending activity is exclusively focused on transactions with individuals secured by residential property, currently offering the Lifetime Reverse Mortgage as its sole product.
- Reverse Annuity Mortgage
This is a mortgage-backed loan combined with a deferred life annuity insurance, allowing one or two people aged over 65 (and under 95), with recognised dependency or disability of 33% or higher, who own a home free of encumbrances and which is their primary residence, to receive a monthly payment per property until death (in the case of two holders, until the death of the last survivor). All of this is achieved without the need to sell the property, with ownership retained at all times.
Marketing Agreements
Occident Hipotecaria E.F.C. currently has a marketing agreement with the insurer Occident GCO, S.A.U. de Seguros y Reaseguros.
Occident Hipotecaria E.F.C. distributes its Lifetime Reverse Mortgage via the insurer’s commercial network. This commercial network consists of insurance agents and specialists (Consultants) in the distribution of life savings and investment products. All have received extensive training on the operation of the Lifetime Reverse Mortgage and are able to inform clients about the product’s features.
Commitment and transparency
Occident Hipotecaria operates under the principles of responsibility, transparency and client focus, offering clear and secure products, supervised by the Bank of Spain.
Services included in our Reverse Mortgage insurance
A lawyer when you need one most
Resolve any legal matter that may arise in your private or family life.
- 24 hours a day, 365 days a year.
- No limit on consultations.
- Social Security administration procedures and claims for Social Security benefits.
A doctor at your disposal 24 hours a day
We put you in contact with a professional by telephone or video call to answer any health-related query you may have.
- At any time of the day, wherever you are.
- Immediate attention, with no waiting lists.
Taxation of our reverse mortgage
Tax
The income obtained from the Reverse Mortgage is exempt from tax, as it forms part of a credit.
Deferred annuity amounts are taxed as income from movable capital and are subject to a withholding determined by the age of the owner of the property at the time the income is received.
At the time of death, inheritance and donations tax is reduced in relation to the value of the property, taking into account the amount of the credit used.
FAQs
This is a type of credit with mortgage guarantee that allows the value of a property to be transformed into money without the need to lose ownership, so neither the owner nor their heirs will lose their rights.
Being as it is a mortgage loan, there are costs involved with this type of transaction: notary, land registry, taxes, etc. There is also a one-off payment when taking out the insurance, which allows the life annuity to be paid. All of these expenses are financed with the same credit.
The amount of the income is calculated according to the age of the youngest account holder, the valuation of the property and the town in which it is located. This information allows you to simulate the reverse mortgage.
Once the last account holder has passed away, his/her heirs have a period of 12 months to pay the debt accumulated until that time. You can also cancel it early whenever you want. Life annuity insurance does not offer the possibility of redemption and will generate the income at the time planned, if the customer has not passed away.
Yes, as the property is owned by the holder. With the income generated by the sale, the accumulated debt may be paid up until the time of the Inverse mortgage.
Life annuity insurance does not offer the possibility of redemption and will generate the income at the time planned, if the customer has not passed away.