It is expected that seniors will be able to borrow more easily from May. A corresponding amendment to the law was passed by the Council of Ministers on Wednesday and now only needs to be adopted by parliament. The starting point is that life expectancy may no longer play a role in lending in the future. Justice Minister Alma Zadic (Greens) and President of the Senior Council Ingrid Korosec (ÖVP) see an important step in the fight against age discrimination.
Formally, this concerned an amendment to the Mortgage and Real Estate Act that was presented in November. The evaluation only led to technical changes, Zadic stated on Wednesday afternoon in the press lounge after the Council of Ministers. The entry into force is particularly new. The original target date was 1 April, but it will now be 1 May, provided there is no delay in Parliament.
Life expectancy no longer an obstacle
For Zadic, the basic principle must apply that seniors receive a loan if there are good securities. This means that life expectancy can no longer be an obstacle if the amount is covered. Obviously, in the event of death, the collateral, such as a condominium and house, must be high enough to cover the loan.
Korosec was pleased that the amendment was passed: “I teased a number of federal ministers about it and now it has worked.” It is an important day in the fight against ageism. The financial sector is especially important for seniors because it enables them to lead a self-determined life.
“You Don’t Go to the Bank for Fun”
In the past, there were often problems getting a loan because life expectancy was a crucial criterion. This made it difficult for those involved to make adjustments, for example. Now it remains to be seen whether the loan can be covered: “You don’t go to the bank for fun”, emphasizes Korosec, chairman of the Senior Association.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
