How does a real estate pension scheme work?

An existing mortgage is usually topped up to a maximum of 50 percent of the market value and taken as a fixed mortgage with a term of 10 to 15 years. Some of the money is used to pay the mortgage interest for the entire term of the mortgage in advance. You receive the rest to use as you please. You could use it to finance your living costs or for minor renovations, for example. After the fixed-rate mortgage expires, you can extend the real estate pension or you can sell your home or transfer it to your children.