FINEMO Property Annuity — Independent Comparison
FINEMO and HomeGrif are two entirely different products, even though both allow retirees to access money from their property while continuing to live in it. FINEMO offers a loan at 9.9% interest. HomeGrif offers a value buyback with no debt. In this article, we compare both products objectively — with concrete numbers.
FINEMO — What It Offers
FINEMO (operator of rentaznemovitosti.cz) offers a product called "reverse mortgage" (zpetna hypoteka):
- Product type: Secured consumer loan
- Interest rate: 9.9% per year
- Minimum age: 60
- Payout: Lump sum (or regular payments)
- Repayment: From the property sale after the client's death
- Regulation: CNB licence as a consumer credit provider
What This Means in Practice
FINEMO lends you money against your property's value. You make no repayments — but the debt grows with interest (9.9% annually). After your death, the property is sold and the accumulated debt is repaid from the proceeds. The remainder (if any) goes to heirs.
HomeGrif — What It Offers
HomeGrif operates on an entirely different principle — property value buyback:
- Product type: Buyback with right of residence (value sale)
- Interest: None — no debt is created
- Minimum age: 50
- Payout: Lifetime monthly annuity, lump sum, or a combination
- Right of residence: Encumbrance (vecne bremeno) registered in the Czech Land Registry
- Heir protection: Earlypass (first 5 years)
What This Means in Practice
HomeGrif buys a share of your property's value. You receive money (annuity or lump sum) and continue living at home. No debt is created — you are not borrowing, you are selling value.
Parameter Comparison
| Parameter | FINEMO | HomeGrif |
|---|---|---|
| Principle | Loan (debt) | Value buyback (sale) |
| Interest rate | 9.9% per year | None |
| Creates debt | Yes — grows with interest | No |
| Minimum age | 60 | 50 |
| Monthly annuity | No (lump sum payout) | Yes — lifetime |
| Right of residence | Lien (zastavni pravo) | Encumbrance in Land Registry |
| Heir protection | Remainder after debt repayment | Earlypass (5 years) |
| Risk of exceeding property value | Yes | No |
| Regulation | CNB licence | Czech Civil Code |
Concrete Example: 70-Year-Old Client, Flat Worth CZK 4 Million (~EUR 160,000)
FINEMO Scenario
Payout: CZK 1,000,000 lump sum (25% of property value)
| Year | Age | Debt (9.9% annually) | Property value* | Remainder for heirs |
|---|---|---|---|---|
| 0 | 70 | CZK 1,000,000 | CZK 4,000,000 | CZK 3,000,000 |
| 5 | 75 | CZK 1,604,000 | CZK 4,420,000 | CZK 2,816,000 |
| 10 | 80 | CZK 2,573,000 | CZK 4,884,000 | CZK 2,311,000 |
| 15 | 85 | CZK 4,126,000 | CZK 5,397,000 | CZK 1,271,000 |
| 20 | 90 | CZK 6,617,000 | CZK 5,967,000 | -CZK 650,000 |
*Assumption: property value growth of 2% per year
After 20 years, the debt exceeds the property's value. Heirs receive nothing.
HomeGrif Scenario
Buyback: 75% of value, combined payout (33% lump sum + monthly annuity)
| Parameter | Value |
|---|---|
| Lump sum payout | ~CZK 990,000 (~EUR 39,600) |
| Monthly annuity | ~CZK 8,000 (~EUR 320) lifetime |
| Total over 10 years | 990,000 + 960,000 = CZK 1,950,000 |
| Total over 15 years | 990,000 + 1,440,000 = CZK 2,430,000 |
| Total over 20 years | 990,000 + 1,920,000 = CZK 2,910,000 |
| Debt | CZK 0 (none) |
Key difference: With HomeGrif, the client receives a total of CZK 2.91 million (~EUR 116,000) over 20 years with absolutely no debt. With FINEMO, the client receives CZK 1 million as a lump sum, but the debt grows to CZK 6.6 million.
What the CNB Says
The Czech National Bank (CNB) has repeatedly warned about the risks of products where debt accumulates without repayment. Key risks:
- Exponential debt growth — interest on interest
- Clients may not understand the total cost of the loan
- Limited exit options — early repayment can be expensive
When to Choose FINEMO
FINEMO may be suitable if:
- You need a lump sum payout and do not expect to live longer than 10 years
- You are over 60 and prefer a regulated loan product
- You do not want to transfer ownership
When to Choose HomeGrif
HomeGrif is more suitable if:
- You want regular monthly income (lifetime annuity)
- You do not want to create any debt
- You are 50+ (FINEMO requires minimum 60)
- You want heir protection (Earlypass)
- You prefer fixed terms with no risk of growing debt
Indicative Calculation
Curious how much you could receive with HomeGrif? Try the calculator — anonymous and without obligation.
Further reading:
