Retired Credit: The Opportunities To Borrow At Retirement
If it was previously complicated to obtain a loan when you are retired, it is now more common for a person over the age of 60 to have their mortgage loan application accepted to finance the acquisition of ‘a new house for its old days. Banking organizations are indeed less reluctant to lend to seniors because of their quality of life, the financial wealth they have and the longer life expectancy. Overview of the restated credit .
Borrow when you are retired
Regarding short-term loans, consumer loan organizations agree to lend money to retirees because the amounts involved are small. Also, retired borrowers represent loan applicants who are reassuring because they generally have stable financial resources and a good quality of life. There is no risk that they will find themselves in a situation of unemployment or dismissal since they no longer work … And they have most often built up real estate or movable assets. However, this does not mean that obtaining a retired real estate loan is easy.
Until what age is it possible to borrow?
First of all, you should know that the banker first looks at the age that the borrower will have at the end of the retired loan. And it is very rare that the repayment of the loan exceeds the age of 80 or 85, knowing that a mortgage is repaid on average over 15 years. We can therefore conclude that young retirees represent the best candidates for long-term retiree credit .
What can make the difference between two people applying for a mortgage for retirees is their state of health and therefore the cost of mortgage loan insurance which can increase considerably: the applied surcharges increase the cost insurance and therefore the overall cost of credit. Their amount is calculated from the answers given in the insurer’s health questionnaire. It is very important not to forget anything and not to lie because this questionnaire is studied in detail and, in the event of a false declaration, the insurer can invoke the nullity of the contract.
For any elderly person whose health causes problems but who wishes to borrow, there are solutions: the mortgage life loan and the guaranteed mortgage loan. The mortgage life loan provides access to bank credit when you have real estate. The sum is lent in the form of an annuity or a capital, the guarantee being constituted on the mortgage of the real estate. The guaranteed mortgage loan makes it possible to borrow in the same way but the loan cannot exceed 70% of the value of the housing placed in the mortgage and is reimbursed monthly, like any other loan.
So, if you are retired and want to borrow to make your plans a reality, it is possible.