From May it will be easier for older people to get a loan. Corresponding changes in the law cleared the last parliamentary hurdle in the Bundesrat.
Sign against age discrimination
In the future, loans can therefore also be granted independently of life expectancy, provided that the outstanding amount is covered by assets. These amendments to the Mortgage and Real Estate Credit Act, which the Federal Council unanimously approved, are intended to set an example against age discrimination. Lending should be possible if the assets provide “a sufficient guarantee that the outstanding (remaining) amount will be covered”. At the same time, it must be probable that the customers will be able to meet the ongoing obligations under the loan agreement during their lifetime. The change in the law also provides clear regulations for inheritance.
The Federal Council passed the amendment unanimously
The Federal Councilors approved the amendment unanimously. Age discrimination is more widespread than one would think, said Elisabeth Kittl from the Greens. This has also been the case with lending so far. Klara Neurauter (ÖVP) also described the change in the law as an important step towards equality and fairness for older people. She recalled that the Seniors’ Association had long advocated such an amendment.
Further reforms necessary
Elisabeth Grossmann (SPÖ) also stated that this change required many applications that had been postponed for years. According to Grossmann, her group in particular has repeatedly campaigned for this. According to the Federal Councilor, a “serious relic of age discrimination” is finally being eliminated. In her view, however, there are other such relics, such as the fact that banking transactions can only be carried out digitally these days. Here, too, reform is necessary. Justice Minister Alma Zadić was also “extremely pleased” about the unanimous decision to change the law. It was unacceptable that older people with sufficient collateral did not receive loans. For Zadić, the change in the law is a very important regulation that has finally been brought about.