If before it was often complicated to be granted a credit for retiree, it is now more rare that a person over 60 years take out a long-term loan to finance the purchase of a new housing.
Banks are indeed less reluctant to lend money to seniors given their quality of life, life expectancy which has been extended and the resources available to them.
Credit solution for retirees
Concerning the credits with shorter maturity, the consumer loan organizations accept to lend to the seniors because it is only a question of small sums. And you should know that a retiree represents a rather reassuring loan candidate because he has financial stability. He is not exposed to the vagaries of professional life, such as unemployment or dismissal, and is generally the owner of real estate. This does not mean, however, that getting credit for retirees is easy for everyone.
Real estate loan simulation for retirees
During the real estate loan simulation, the retiree must be aware that the bank will become aware of his age at the end of the term. It is indeed quite rare that a repayment of credit does not exceed the age of 80 or 85 years. Note that a home loan is spread over an average of 15 years. The best candidates for the retiree credit are young retirees.
What makes the difference between two retirees applying for the loan is their state of health and therefore the cost of home loan insurance which can be particularly high if there are specific health problems and risk. In this case, premiums are indeed applied and very often come to greatly increase the cost of insurance. The amount of these additional premiums is calculated from the responses provided by the retired candidate in the health questionnaire.
For an elderly person whose health is a problem but who wants to borrow, there are solutions: the mortgage and bonded life loan (provided you own and have property).
Mortgage life loan
The mortgage life loan provides access to the bank loan. The money is paid monthly in the form of an annuity or capital and its amount is based on the mortgage of the property owned by the borrower.
The guaranteed mortgage loan allows a loan in the form of capital or annuity. The loan cannot exceed 70% of the value of the property and is repaid in monthly installments, like any other loan.
When you are retired, you can borrow! And there are many credit solutions for retirees.