It is quite possible to borrow after 60 years. Some banks also offer senior-style, specially designed mortgage lending packages. Learn how to borrow after age 60
Ready for consumption: few obstacles
For any small loan, and for a short period of time, the auto loan, personal loans, and other permanent loans are generally granted to borrowers 60 years of age or older without any problem. For this type of credit, loan insurance is not necessarily imposed, especially if the amount of the loan is low compared to the assets available to the borrower. But in the case of a mortgage, things can get complicated.
Real estate credit: the importance of your personal situation
Today, banks and insurance companies take into consideration the extension of the life span. They tend to accept mortgages more readily, both before and after retirement and have pushed the age limit for access to their group insurance contract (group insurance), which covers death, accidents, and disease. However, obtaining a mortgage and the rate granted depends on your situation (resources, expenses, personal contribution, assets, etc.). In case you are not yet retired, the loss of your income will be taken into account by the lending institution. But some financial organizations offer a step-by-step reimbursement: the monthly payments are more important as long as you work and are lightened from the age of retirement.
Loan insurance: to study closely
In order to borrow, it is generally necessary to take out insurance as a guarantee. But the older you are, the higher the cost of loan insurance. Up to age 65, you may be able to take advantage of the group insurance of your bank, but the rate will be increased. You should also know that their coverage does not generally extend beyond 70 years. If the terms of this bank insurance contract do not suit you because it does not match your profile or it is too expensive, know that you can take out an insurance contract individual, as part of the insurance delegation, to the insurance company of your choice. This way you can find very competitive contracts. Do not hesitate to take a close look at the proposed conditions, play against the competition and try to negotiate: is it necessary to guarantee incapacity for work or unemployment? Is it possible to cancel the prepayment penalties? …
Your health is not a brake
From the age of 45, banks and insurance companies look very closely at the state of health of borrowers. Any significant health problem, called aggravated health risk, can prevent you from accessing the bank’s group insurance policy. However, the Aeras convention intervenes so that a solution can be found.
The financial institution may also exempt you from taking out loan insurance in the event that you are able to provide another guarantee: the pledge of a life insurance policy or a savings account, the surety, Mortgage … Regardless of the age, you have, your situation or the type of loan you want, you are advised to take the time to compete between organizations based on the Effective Rate. Global) including all fees.
Borrow after 60 years, it is possible! By using a broker, you will save a lot of time and reduce your expenses.