Reverse Mortgages in Italy’s Ageing Economy: Turning Housing Wealth into Retirement Security:

Reverse mortgages (so called “prestito vitalizio ipotecario” in Italy), function as a practical solution for converting illiquid housing assets into a source of financial support during old age. In essence, a reverse mortgage is a loan secured by the borrower’s primary residence that allows homeowners, typically aged 60 or older, to withdraw part of the property’s value in the form of cash or periodic payments. Repayment of principal and interest is generally deferred until the borrower’s death or the sale of the home, meaning that the obligation is usually settled by heirs Features or from the sale proceeds. This structure enables continued ownership and occupancy, while providing access to housing wealth without the need to sell or relocate. This structure enables continued ownership and occupancy, while postponing debt amortization and capitalized interest, which can offer increased financial flexibility for elderly individuals who possess substantial housing wealth but limited liquidity (ABI, 2016).