Mortgages and loans with collateral in housing can be recommended for older people

Some banks want to sell more products to pensioners. Firstly, mortgage-free loans with collateral in the home, secondly an annuity. This means that the bank wants you to put the loan into a paying annuity right away.

What is annuity? 

annuity loan

Then the money will not go into your bank account, but you will be paid an amount every year for at least 12 years. Annuities are only applicable to those who pay wealth tax.

Keep in mind that the new loan will consume large parts of your tax assets. If you take out a loan of NOK 500,000 and have a valuation value of the house of NOK 400,000, then your tax credit is zero. up to.

The only ones who lose you a little more financially are your heirs

The only ones who lose you a little more financially are your heirs

But most heirs will find it nice to have a decent old age as a pensioner. In any case, it is always advisable to inform the heirs that you have taken out a loan with a security in the home so that it will not come as a surprise afterwards when the inheritance is to be distributed.

If you take out a large loan, you do not need all the money right away. You then have several alternative investment forms: high-interest account money market funds, and bond funds.

You may want to invest part of the loan in a money market or bond fund. Such funds provide a return roughly in line with the best high-interest accounts. Equity funds can also be an alternative, but only for a smaller portion of the money.

That is, the money that will remain untouched for the longest time

mortgage

Equity funds are only suitable for people with a long time horizon (at least 5 years) and can withstand some fluctuations in the stock market. So that such a scheme should not end in disaster.

For example, the last 3 years in the stock market, the vast majority should choose a bomb-safe investment of money. That means high-interest account.