The Ministry of Finance consider the introduction of a “reverse mortgage” to support the poor

The Finance Ministry is considering the option of activating the “reverse mortgage” as one option to help the poor. This was announced by first Deputy Minister of Finance Tatyana Nesterenko, reports TASS.

“We are discussing the introduction of so-called reverse mortgage. A person who has property that has ceased to earn, it can completely convey the property to the state, which will pay for the mortgages,” she said. Nesterenko noted that the variant is considered that after the death of the owner of the property will be forfeited to the state.

She added that the mechanism of “reverse mortgage” can be used for both movable and immovable property. In this case the Deputy head MinFin refused to give a timeframe for the development and launch of the mechanism.

As reported in early April, the Bank of Russia, interest rates on mortgage loans in Russia in February decreased to 12.1%, falling to the lowest level since the beginning of 2014.

A reverse mortgage is the transfer of ownership of their housing as collateral to the Bank or government entity in exchange for credit or money. Previously such a mechanism launched by the Agency for restructuring of housing mortgage loans (ARHML). The program of the Agency for 10 years.