If you want to buy an apartment or a country house right now, but do not have sufficient amounts of cash, you have only one way out — mortgage. Up to what age to give «Sberbank», and other financial institutions such a loan? And is it possible to realize his dream even after retirement?
In this article we will try to answer these and some other issues. So, if you don’t know up to what age can you give a mortgage on a house, read carefully.
Why age affects mortgage
First of all, let’s talk about why age limits this question is so important for banks.
The thought of acquiring their own homes, each comes their own way and at different times. Someone willing to relocate overage children or to make a gift to grandchildren. And someone decides at least in his old age to improve their own living conditions and live in comfort. Whatever the reason, a positive decision financial institutions about the results of the mortgage will depend primarily on the intended level of the client’s income in the next 10–20 years. It is quite understandable. After all, a mortgage involves a fairly substantial sum, and the term of repayment sometimes stretched up to a quarter of a century.
In General, the age limit for the issuance of mortgage set at 18–60 (55) years. But to clients of different ages at the Bank employees are very ambiguous.
The Best age for obtaining a mortgage loan is considered to be 35–45 years. It was during this period of his life a man reaches a stable financial situation, actively building a career. There is still a lot of years to develop and satisfy their desires. And all efforts aimed at improving the conditions and quality of life.
After fifty years the life of a person begins to acquire risks. This is the answer to the question about what age to give a mortgage. First of all, inexorably approaching the retirement age, and hence likely to lose the work. Increased risks of disability, disease, disability. Also, for anybody not a secret that the rates of natural mortality after age 60 is growing rapidly. These and some other reasons that force the banks to strictly comply with the upper limit of age limit for mortgage loan.
Up To what age can you get a loan?
Usually, along with the retirement a person loses additional sources of income, ceases to work. Therefore, according to banks, at the time of retirement the person must repay the existing mortgage loan. So when calculating the regular payments, the creditor seeks to meet the period of time from the moment of registration and until the hour “X”. In practice, this means that the loan term steadily decreases as the age increases of the borrower.
Here is an example:
The Financial institution offers the mortgage term to 25 years. For a loan turns 50-the summer man. As to retirement, it remains to work another 10 years, the maximum period for which the mortgage to him is only 10 years old. Of course, in this case, the monthly payment will amount to a tidy sum, and will need to have sufficient income to cope with such financial burden.
However, sometimes banks make concessions. If the client has great recommendations, a high level of income, the opportunity to invite a co-borrower in the contract or provide good collateral, the lender can go to meet him and a little to extend the term of the mortgage. However, this increase is rarely more than 5–6 years.
Mortgage lending after 40 years
Despite the fact that banks are very sensitive to the age of the borrower, mortgage for seniors is still possible. Some financial institutions are developing special loan programs to make housing loan up to 20 years. This is a condition that at the time of full repayment, the borrower should not be more than 75 years.
To participate in this lending program can not all citizens approaching retirement age. There are several criteria that can positively influence the Bank’s decision about granting the loan. Mortgages for seniors are quite possible in such cases:
- The Borrower continues labor even after the registration of pension. DC additional income will definitely increase your chances in the eyes of the lender.
- The Client is in a family relationship, has no children and dependents. Banks prefer couples to single people. Indeed, in this case the total family income is significantly increased, and therefore reduces the risk of non-payment of funds.
- The Pensioner has the right of ownership of real estate, sufficient for the additional financial security of the loan. If granted bail will have high liquidity, the pensioner can apply for a mortgage, but is entitled to rely on favorable credit terms.
- The Borrower is of retirement agecan attract a sufficient number of solvent sureties (co-borrowers). Most often these “guarantors” are the children, grandchildren or other relatives. Moreover, the presence of a familial relationship in this case is mandatory. This is due to the fact that in case of death of the borrower the obligation to pay off the mortgage proceeds to co-borrower.
In addition, the sureties must also possess certain qualities:
- To be of working age;
- Have a good credit history;
- Confirm the high level of solvency.
For example, let’s look at what age to give a mortgage on a house in different banks of Russia.
The Most demanding requirements age makes «Alfa-Bank». Here I can give a mortgage in that case, if at the time of repayment the borrower will be 54–59 years (women and men, respectively).
To 55 years (women) and 60 years (men) are willing to wait in a “ROSBANK”, “Metallinvestbank” and “Bank of Moscow”.
The Standard 65 years of age — the age limit for registration of the mortgage in the “URALSIB”, “Expert Bank”, “IBC”, “Nico Bank”, “salvage” and some other financial institutions. That is so much you must be at least up to the moment on account of the credit institution received the last payment on the mortgage.
The Most loyal in this regard, “VTB24» and «Sberbank». In the first willing to wait until the 70th anniversary of the borrower, and in the second before the moment he turns 75.
Where else retirees love
And until what age give mortgages to other banks? Among the massive financial-credit institutions, home loans for pensioners are available primarily in takih:
- «TransCapiTalBanK» etc.
Where to go it depends on you. If refused in one Bank, nobody can forbid you to go to another.
Let’s take a closer look at the terms of mortgages for pensioners «Sberbank». Then for senior citizens there are several types of programs:
- 55/60 years for women and men, respectively — the option of mortgage lending with state support;
- 45 years of age — mortgage lending project for military personnel;
- 75 years — the program provides for the construction of a country house, as well as the purchase of housing in the building or on the secondary market.
Other parameters focuses on two items: wages and continuous work experience. Based on the level of aggregate income is determined by the amount of the loan, its term and the need for additional collateral. Experience is checked for stability and continuity.
For all programs interest rate «Sberbank» installed on a single level and is 12.5%.
How to be retired?
If you don’t know up to what age can give a mortgage in a financial institution, the surest way — just to go there. Even if your age raises some concerns, most likely you will offer at least two options out of the situation:
- Pick a program providing the capability to repay a mortgage after retirement;
- Offer to issue a standard contract for the number of years that remain until the promised hour.
Which of them to stay in the end — to solve certainly to you. But is it really necessary for you mortgage? Age restrictions are not the only obstacle to obtaining such information. Credit conditions for borrowers older differ significantly from what can be offered to young people:
- Loan term should not exceed 15 years;
- Least the initial payment usually increases to 20–25%.
In addition, you will definitely be asked to insure the life and health. But the cost of this policy will udorozhala in proportion to your age. So when you get a mortgage loan at a Mature age, you should consider all «over» and «against». It is likely that the negative arguments will be more and you will prefer to arrange a mortgage for a younger family member.