With the extension of the lifespan and later retirement, many seniors want to invest in stone. However, borrowing for a real estate project after retirement age has not always been easy.
Access to the loan deemed difficult for seniors
Despite advances in medicine and safer living conditions, most lending institutions are reluctant to provide a home loan for someone over the age of 60 who they consider “at risk”. We note that everything is done to dissuade clients of an older age, with in particular fairly difficult conditions, and high borrower insurance. Some banks even completely refuse loan requests. The real problem therefore concerns this age limit which is 75 years, even 70 years for some establishments.
And yet it is during retirement that seniors have the opportunity to do certain things that they did not have time to do before. It is in this context that solutions for pensioners are born.
A new offer is born
Recently, a new offer of mortgage loan financing solution with no overnight contributions. This offer makes it possible to borrow up to 110% of the value of the purchase price of a new property, and also makes it possible to cover, in the financing envelope, the transfer costs as well as the ancillary costs of agency and notary. The financing of an old property is also possible. However, before making this loan, the household must not be more than 50% indebted.
This offer also allows the non-obligation to change banks to obtain financing, or to be domiciled at a bank.
With this new product, the age limit is completely pushed back. It is therefore possible to subscribe up to 90 years, with an age limit of 95 at the end of the loan. To avoid paying a large contribution, the subscription to a borrower insurance is not compulsory, and the insurance can be set up in the form of a pledge.
Finally, the repayment period is between 5 to 35 years, with a possible deferral period of 24 to 36 months.
Thus, retirees with real repayment capacity, but who are refused their loan requests because of their age, can now borrow.