The senior mortgage loan is a financing solution intended for seniors. That is to say people over the age of 60. More specifically, it is a guaranteed mortgage loan. Ideal solution for seniors looking for real estate financing. Because it avoids taking out senior borrower insurance, it is a double guarantee credit: a mortgage and a surety. Although it is little known to the French, it is an attractive alternative to life mortgage credit. This solution is intended to be particularly expensive.
Senior mortgage loan: definition
A senior mortgage loan is a loan allowing the lending institution to finance any property by taking a mortgage on another property. A deposit is also linked to the credit. The advantage of a senior mortgage is that no death and disability insurance is required. And therefore no need to pass health exams for the senior borrower. It is indeed the deposit which replaces this insurance. The guaranteed mortgage loan is only intended for people over 60.
What is the difference between a bonded mortgage and a life mortgage?
The bonded mortgage loan and the mortgage life loan are both suitable for seniors. Because they do not require the purchase of death insurance. In the event of death, given that no insurance reimburses all or part of the capital. It is up to the co-borrower and the heirs to assume the debt.
With a guaranteed mortgage, the senior assumes the monthly payments of the credit while with a mortgage, he has nothing to pay. Interest is accrued monthly at the credit amount. Over time, the amount that is generated repeatedly becomes the original amount of the credit.
The senior who has taken out the loan owns their property and must therefore assume all of the related expenses: charges, housing tax, property tax or work.
Housing being mortgaged for the benefit of the lending bank. The underwriter of the credit must not reduce its value. He is required to keep the property in good condition in order to preserve its value. The mortgaged property cannot be donated. However, funds from the credit can be donated to relatives.