Tagasimaksel

Tagasimaksel, also known as "reverse mortgage" in English, is a financial product designed primarily for older homeowners, typically aged 60 or above, who own their homes outright or have a significant amount of equity. The term originates from Finnish (*tagan* meaning "home" and *maksu* meaning "payment"), reflecting its roots in Finnish financial terminology.

In a tagasimaksel arrangement, the homeowner receives a lump sum, regular payments, or a line of credit from a financial institution in exchange for the right to live in their home until they pass away, move into long-term care, or sell the property. Unlike traditional mortgages, the borrower does not make monthly payments to the lender. Instead, the debt accumulates with interest, and repayment is deferred until the homeowner permanently leaves the property.

This financial tool allows seniors to access the equity in their homes without the burden of traditional mortgage repayments, providing financial flexibility in retirement. The proceeds can be used for living expenses, healthcare, or other personal needs. However, it is important to note that the homeowner retains ownership and continues to live in the property as long as they meet the terms of the agreement.

Tagasimaksel is regulated in Finland by the Finnish Financial Supervision Authority (Finanssivalvonta) to ensure transparency and protect consumers. The product gained popularity in Finland in the late 20th century as a way to support aging populations while maintaining homeownership. Similar reverse mortgage models exist in other countries, though the specifics of eligibility, terms, and regulations may vary. Critics of tagasimaksel highlight potential risks, such as the possibility of debt exceeding the home’s value or leaving heirs with financial burdens. As with any financial product, careful consideration and consultation with a financial advisor are recommended before entering into such an agreement.