What is a Reverse Mortgage?
A reverse mortgage is a loan that a bank provides against the value of your property. Unlike a regular mortgage, you don't need to make monthly payments – the debt accumulates and is repaid after your death through the sale of the property.
What is Lifetime Rent (HomeGrif)?
Lifetime rent is a regular monthly income you receive in exchange for the future transfer of ownership of your apartment. You continue living in your apartment until the end of your life while receiving monthly rent payments.
Comparison: Key Differences
| Criteria | Reverse Mortgage | HomeGrif (Lifetime Rent) |
|---|---|---|
| Product Type | Loan with interest | Sale with lifetime occupancy rights |
| Monthly Payments | You pay nothing, debt grows | You receive regular payments |
| Interest | Yes, compounds over time | No interest |
| Debt Risk | Debt can exceed property value | No debt |
| Inheritance | Uncertain (depends on debt size) | 50% protection for heirs |
| Transparency | Complex terms | Simple contract |
HomeGrif Advantages Over Reverse Mortgage
1. No Interest
With a reverse mortgage, debt constantly increases with interest. At a 6% rate, your debt doubles in 12 years. HomeGrif has no interest – you receive a fixed amount and no debt accumulates.
2. Guaranteed Income
With HomeGrif, you know exactly how much you'll receive each month. With a reverse mortgage, you get a lump sum that you must manage and spread over years yourself.
3. Heir Protection
HomeGrif guarantees 50% protection for your heirs in the first 5 years. With a reverse mortgage, the debt with interest can "consume" the entire property value.
4. No Surprises
With a reverse mortgage, you might end up owing more than the property is worth. With HomeGrif, this situation cannot occur.
Who is HomeGrif Suitable For?
- Property owners 50+ without a mortgage
- People looking for stable monthly income
- Those who want to continue living in their apartment
- Parents who want to help children with mortgage down payment
- Childless couples who want to use their assets during their lifetime
Conclusion
Reverse mortgage may be suitable for those who need a one-time larger sum. HomeGrif is a better choice for those looking for stable monthly income without the risk of growing debt and with protection for heirs.
Tip: Use our calculator to find out how much monthly rent you can get from your apartment.