What’s the latest market for reverse mortgages? Believe it or not, it’s Peru.
According a report in BNAmericas
, Peru's finance ministry introduced secondary legislation that defines the basic tenets of the country's new reverse mortgage law. This legislation will cover the rights and responsibilities of lenders and borrowers, and states that borrowers have the right to make early repayments and their heirs can pay off the loan when the borrower dies. The borrower will also be required to take out an all-risk insurance policy on the property.
"The use of this tool will have a positive impact on the formal loan sphere in Peru, since more sources of credit will open up, allowing for more people to access the financial system," the ministry said in a statement.