For homeowners aged 65 adn over in Spain, a reverse mortgage can unlock the value of their property without requiring them to move. EBN Banco is expanding access to this financial product, allowing individuals to receive immediate funds while retaining full ownership of their homes.

This type of loan is notably useful for those looking to settle existing debts or improve their overall financial situation. The homeowner receives liquidity upfront and does not have to make interest payments or amortizations untill the loan is settled.

This solution allows to obtain immediate liquidity maintaining 100% of the property of the house, without paying interest or amortizations until the loan settlement

security, Trust, and Transparency

This solution allows to obtain immediate liquidity maintaining 100% of the property of the house, without paying interest or amortizations until the loan settlement

EBN Banco has broadened the availability of its reverse mortgage product to include more municipalities, especially major cities in Spain. This expansion aims to make the product more accessible to a wider range of homeowners.

To ensure transparency, EBN Banco offers an online calculator that simulates the maximum loan amount, interest accrual, and contract conditions. This tool provides a clear and straightforward overview of the terms involved.

Additionally, EBN banco provides a dedicated team to guide customers through the entire process, ensuring that both homeowners and their heirs fully understand the product details.

According to GUERTO GASCÓN, “The inverse mortgage is a decision that must be made as a family.In that sense we encourage the heirs to get involved in decision making and we have even created a specific section for them on our website.”

EBN Bank’s real time calculator allows to simulate the maximum amount that each client can receive and the interests you will have to pay at the expiration

Eligibility Requirements

Before applying for a reverse mortgage, it is indeed essential to verify that you meet the necessary criteria:

✓ Be over 65 years of age, or 60 with a disability of 33% or more.

✓ Own a home valued at over €150,000.

✓ the property must be located within an area serviced by EBN Banco, which can be checked via the online simulator.

✓ Legal or testamentary heirs must provide their consent.

✓ Must have been a resident in the home for at least three years, or twelve months if recently acquired.

✓ Must be current with community fees, property taxes (IBI), and home insurance.

✓ The home must be free of charges; any existing mortgage must be settled before finalizing the reverse mortgage with EBN Banco.

✓ A current appraisal from an approved appraiser is required.

✓ Must pass a suitability assessment by an independent advisor, as mandated by regulations.

✓ Must open a current account with EBN Banco under the same ownership as the mortgage.

Financial Details

The reverse mortgage from EBN Banco features transparent and competitive terms. an opening commission of 1.5% applies to the total credit, and the interest rate remains fixed at 6.50% TIN (7.13% TAE) for the duration of the loan. The minimum loan amount is €50,000, and the maximum is €600,000.

The loan can be canceled at any time, with a commission of 2% if canceled within the first ten years, or 1.5% thereafter. Interest is not paid monthly but is settled at the end of the contract, either upon the death of the homeowner or through early cancellation.

The client is responsible for expenses related to the home appraisal, energy efficiency certificate, and independent advisor. EBN Banco covers notary fees, registration costs, and documented legal acts. Because the product is marketed directly, there are no intermediary fees.

Request Process

The application process for EBN Banco’s reverse mortgage involves three steps, supported by specialized professionals:

1. Preliminary Study

The process begins with a request for details, which allows EBN Banco to prepare a preliminary study tailored to the client’s situation. The following documents are required:

• Home deed

• Identification of all homeowners

• Home insurance policy

• Latest property tax (IBI) receipts

• Certificate of being current with neighborhood community fees

• Proof of heirs through family records or will

2.Acceptance of the Preliminary Study

If the initial conditions are met and both parties agree to proceed, EBN Banco provides a standardized pre-contractual document, as required by the Bank of spain. This document outlines the terms of the agreement clearly and allows the client to review the proposal, discuss it with their heirs, and make an informed decision.

3. Contracting Phase

The final stage requires an official appraisal of the home by an appraiser approved by the Bank of Spain.

• Once the appraisal report is received, EBN banco updates the study and sends the client a final proposal with the definitive conditions.

• If the client is satisfied, a binding offer is issued. An independent advisor then verifies that the product meets the customer’s needs and prepares a signed report.Following the advisor’s approval, the loan is formally signed before a notary.

From that point forward, the homeowner receives the agreed-upon amount, retains their home, and does not pay fees or interest during their lifetime.

More Than a Financial Product

EBN Banco’s reverse mortgage offers liquidity and financial autonomy, allowing homeowners to live peacefully, knowing that their living situation remains stable.

According to MANUEL PUENTE GASCÓN, EBN Banco’s reverse mortgage offers homeowners over 65 “the ‘value of staying’: Staying where one has always lived, keep what is his, where his place is and be able to decide for oneself, transforming his heritage into tranquility.”