- Maximum age for a credit: the point of view of the bank
- Old borrower: what impact on health insurance?
More and more people who have reached retirement age want to become owners of their main home, or even a second home. Today, the behavior of banks has evolved and seniors can claim access to property. Why, how and up to what age can we borrow?
Mortgage Loan: How old can you borrow?
Maximum age for a credit: the point of view of the bank
If banks are now more favorable to lend to seniors, they realized that these customers had significant guarantees. In fact, people who are retired or close to retirement often have a greater personal contribution than people who start their professional life. It may be the sale of another property, savings or life insurance.
As a first step, the bank will obviously look at current and future incomes in order to assess the potential of mortgage repayment: a person close to retirement for example will see his monthly income decrease the day or retirement will be effective. The banker will also take into consideration the fact that the borrower is alone or in a relationship.
Banks are offering more and more loans to compensate. This formula, ideal for seniors, allows modulate monthly payments over the years. For example, a borrower who is still active will see his monthly payments go down when he retires, in order to adjust the monthly payments to his budget.
A final criterion is the duration of the loan. This duration will obviously be shorter depending on the age of the applicant. The goal for the bank is that the loan can come to an end!
So, to answer the question "How old can you borrow? We can say thatthere is no age limit, and that the granting of mortgage is subject to many criteria, other than age.
Old borrower: what impact on health insurance?
This is where things get a little complicated for seniors... In fact, the bank will ask for a health questionnaire, and unfortunately the older we are, the more the risks of health concerns increase. Choosing the insurer proposed by the bank is not necessarily the most judicious solution. Thanks to the Hamon law, you can now choose your borrower insurance in the context of a mortgage.
It is also interesting to contact the AERAS convention (Insuring and borrowing with an aggravated health risk) that facilitates insurance for people who have had a serious health problem. In some cases, borrower insurance can be a significant cost. For over 65s, Rates can range from 0.8% to almost 2%. It is therefore advisable to take the time to compare the various credit insurance offers.
So whatever your age, the road to home ownership is open...