In the Czech Republic, this type of mortgage gives you a sum of cash when you take it out. It can be used to refund money (own resources) you used in the past to buy a property. Reverse financing (cashback mortgage) can be used if you have renovated or purchased, for example, a family house, apartment unit or plot of land with your own resources. Refunds can be requested up to 3 years after the transaction was conducted. You can then use the money from the mortgage for any purpose.
Client applies for a cashback mortgage loan in the same way as he/she would apply for a regular mortgage. The current conditions for mortgages will be applied, even if a reimbursement of payments was made in the past. The amount of the loan will depend, in particular, on the amount of funds originally used and on the applicant's current income and obligations. The loan is repaid in annuity installments and the loan has the parameters of standard mortgages.
The situation when a client decides to buy real estate in cash is currently common. Due to high inflation, buying a property is one way to invest your own savings. However when the economic situation changes, it is possible to recover own resources using a so-called 'reverse' mortgage and use these funds for other projects and plans.