The average age of a customer who decides to take an annual salary in a mortgage fund is 76 years old – this is what the Financial Companies Association’s most recent report on reverse mortgage showed in the sales model. In the period 2010-2020, the age of seniors using the service was between 75 and 80 years old, although the offer is available for people aged 65 or even younger.[1] This allows for the conclusion that older people who have retired for some time have tried to adjust to the new budgeting situation. Alongside the worsening financial woes, they decided to pay an annual stipend.

A survey conducted by the DOM Mortgage Trust shows 60 percent. Of the clients of this institution signed an annual contract due to the deteriorating financial situation, various obligations that were awaiting settlement, and even mounting debts.[2] This would confirm one of the conclusions of the latest ZPF report. If the average age of an elderly person who decides on a disability pension has fluctuated over the past ten years between the ages of 75 and 80, it can be assumed that a large portion of the elderly have tried to live normally in retirement, but because of the financial decline. Robert Majkowski, head of the DOM mortgage fund, says they have been forced to make such decisions and not others.

What is the real estate subject of contracts?

The clients who use the service are the elderly who own real estate: a house or an apartment. The average size of real estate contracted with the Fund reached 48.9 square meters at the end of 2020. This value has changed over the past ten years. In 2011, it was 42.3 square meters, and at the height of 2018, it was 90.6 square meters. Later on, the ratio began to decline, which means that the elderly hand over smaller and smaller properties to service providers in exchange for cash benefits.

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Until the end of 2014, the average value of one property managed by ZPF-linked mortgage funds was in a downward trend – from 321 thousand PLN. Polish zloty in 2010 to 237 thousand. PLN in 2014, which gives a difference of 84K. PLN. After this period, a steady increase in this value can be observed, and at the end of 2020 it amounted to 313.4 thousand. PLN.

Where are most clients from?

At the end of 2020, more than 28.3 percent. Real estate managed by mortgage funds was from Mazowieckie County. Then from Pomorsky (12.7%), Olskie (9.9%), Dolnośląskie (8.8%), Maopolskie (7.9%) and Greater Poland (7.4%). Clients receiving pensions come from these provinces. The service has evolved over the years. Initially, we saw an interest in large urban agglomerations of over 100,000 inhabitants. Now we can also see them in small towns. In the past, our clients were primarily apartment owners, and now we’re seeing increased interest among single and multi-family homeowners, who, given the property’s rising value, can count on much higher cash benefits – sums that Robert Majkowski arrives at.


[1] Report “Reverse Mortgage in Sales Model 2010-2020”, Association of Polish Financial Companies

[2] Poll conducted by the DOM Mortgage Fund of 1,000 people over the age of 65 in 2019.

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