The older we get, the more difficult it is for us to obtain a loan for which the object of financing is the acquisition of real estate. So, until what age can you borrow for a mortgage?
Discover through the lines of our article all the information on the financing of a real estate project for retirees!
Obtain a mortgage after 60 years
Obtaining a mortgage loan without contribution after 60 years is not an easy task. Indeed, network banks are less inclined to issue opinions favorable to real estate financing applications for seniors. The cause, retirement pensions which hardly increase (that is to say, according to the index of the cost of living and inflation published by the INSEE).
However, some banking establishments grant mortgages to seniors in return for short-term financing (around 10 years). To compensate for non-changing income, a fixed interest rate with constant monthly payments is strongly recommended!
Any retired inactive borrower profile who undertakes the process of subscribing to a mortgage loan without contribution through a network bank, will undoubtedly encounter great difficulties in carrying out his project.
Partly for the age of the subscriber (s) which is a risk factor for the lending institution. On the other hand, the bank's group borrower insurance cover no longer guarantees death cover after a certain age (generally 75). The insurance premium can be an element of refusal because of its very expensive cost.
The personal contribution is essential content of the price of goods on the new and old real estate market. It is to meet the demand of a specific socio-professional category "retirees" that the firm Ficamont Finance Conseil offers "The financing of a real estate project eligible for seniors".
Until what age can we borrow?
The advantage of this new real estate financing product is that the loan start age must be 90 years or less. The loan end age is 95 years. The maximum household debt ratio after the operation is 40%. That is 7% higher than a deposit bank limited to 33%. Note, since the period of the first confinement, an effort rate of 33% has strengthened the acceptance standard.
Also, taking out borrower insurance coverage is not compulsory, but recommended. This avoids having to pay a large insurance contribution following impacted surcharges after completing the state of health declaration. The loan can be insured by any other means, such as life insurance for example with beneficiary accepting the family (husband / wife, children, etc.).
A real tailor-made solution for retired individuals with a real repayment capacity, but for whom banks refuse financing for the reasons mentioned in the aforementioned paragraph (lack of personal contribution, lack of savings, overpriced borrower insurance, …).
In conclusion, the maximum age to claim to be able to borrow a real estate financing is 90 years. Why 90 years? Quite simply because the minimum duration of real estate financing is 60 months, or 5 years. And that in parallel with this banking standards, the maximum age at the end of credit is 95 years! The maximum amortization period is 35 years. A period of 24 to 36 months of deferral is possible.
Mortgage loan for retirees without contribution
With the new Ficamont Finance financing formula, borrow up to 110% of the value of the acquisition price for a new purchase. A real estate loan solution for seniors making it possible to take charge of the transfer costs in the financing envelope (deed costs approximately 2 to 3% of the purchase price), as well as the ancillary costs: agency and notary. However, since the period of the first confinement, financing at 110% is possible mainly in the case of a rental investment.
If it is a purchase in the old, then the financing is equal to 100% of the purchase price. A personal contribution is requested in order to cover the financing of ancillary costs. About 7 to 8% is twice as high as for an acquisition in new.
Note : Unlike deposit banks, no direct debit or personal contribution is required by the lending institution in return for the financing.
The mortgage loan eligible for seniors is a bridge loan solution for owners with full ownership of their property. Depending on the case studies, it is also possible to finance a cash envelope in the financing plan.
The household indebtedness before the operation must not exceed 80%. The financing also makes it possible to acquire shares in SCPI. Or to include the repurchase of credits in the course of amortization.
Without further delay, discover the Midi Libre article about Ficamont Finance and the distribution of mortgage loans for seniors !
Or the interview with the Director of the cabinet while listening to the France Bleu Hérault podcast : The question to the expert Morad BOUISRI about the mortgage loan eligible for seniors .