Infonavit in Mexico expands support program for retirees

To reach more retirees who have an existing mortgage loan with the Workers' Housing Institute (Infonavit), the agency announced changes to its Retiree Support Program.

At a press conference, Infonavit executives explained that the program previously applied only to minimum wage (VSM) loans issued before 1999, but with the changes, it will apply to loans regardless of denomination or date of issuance.

In addition, if a pensioner lost eligibility for benefits under the scheme, they could no longer access the program, but with the changes, if they lose eligibility, they can apply again, up to three times during the funding period.

Infonavit's Retirement Support program is designed to help retirees who are struggling to repay an agency loan because the monthly pension they receive is lower than the salary they earned while they were active workers.

"If borrowers who are now retirees had any unpaid or outstanding interest, that interest will be capitalized and they will be able to participate in this program," explained Alicia Barrientos Pantoja, Infonavit's deputy director of portfolio management.

One important change to this program is that the monthly loan payment is adjusted to 25% of the pension, whereas the percentage could be up to 30% of these funds.

"This program is adjusted to 25% of the pension, and this reduces the burden on the retiree because he knows that his assets are safe and he may have a few monthly payments left to pay, and he does it in payments that are really adapted to his needs," explained Infonavit head Carlos Martinez Velasquez.

According to Barrientos Pantoja, the plan is to support 65 000 loans in VSM and 68 000 loans in pesos that have been acquired by people who are retired.

"In other words, 133 000 borrowers will benefit from this program," she said.

Requirements and how to apply

According to Infonavit executives, people who want to take advantage of the benefits of this program must meet the following requirements:

•  Be a senior citizen;
•  Stop contributing to IMSS or ISSSTE;
•  Make at least 120 full monthly installments over the life of the loan;
•  That the loan is not in litigation;
•  The loan is not in active permanent restructuring.

To apply for the program, retirees should contact the Infonavit Service Center (Cesi) or the nearest Infonavit regional office.