Mortgage lending for pensioners – banks are reluctant


 

The Government actively promotes barrier-free housing and supports corresponding conversions through low-interest WKF loans . Often, the idea of ​​rebuilding your own four walls to suit your age does not come at the age of forty if you buy the house, but only at an advanced age.

The absurdity of the residential real estate credit directive

The absurdity of the residential real estate credit directive

The Residential Property Credit Directive, which has been in force since March 2016, originally provided that mortgage lending must be reduced during statistical life expectancy. With this previous regulation, however, the legislature has gone far beyond the demands of the EU.

The EU only demanded the proper repatriation of the loan. Whether this is done by the borrower or his heirs was never up for discussion.

Repatriation of the loan during the remaining statistical life is questionable for pensioners. What was the result? Not a few banks rejected the financing. But not the available pension was the reason, this was not even questioned. Instead, age was crucial.

Construction financing for pensioners in comparison

Construction financing for pensioners in comparison

Our following comparison gives you an overview of the current conditions of various banks and intermediaries – also for pensioners:

Stumbling block follow-up financing

Stumbling block follow-up financing

In addition to renovation or purchase, there is another obstacle for pensioners: follow-up financing. For a house that the acquirer bought at the age of 45, there is still a residual debt in the books at the age of 65 at the beginning of the pension. Getting follow-up funding for it can also be a challenge.

On the other hand, it takes some years of work to realize the dream of your own home. That buyers or builders are then 40 or 45 years old, is not uncommon. Whether the loan is then completely redeemed at 65, is another matter.

Theoretically, when granting loans, credit institutions should ensure that funding on retirement is fully paid off.

Some banks are turning to Volltilger  to the generation of “Best Agers”, the 50+ generation. These are matched by the repayment on the remaining term until the beginning of retirement, the property is exempt from the retirement. On the other hand, however, may be quite a burden.

Anyone who wants to finance 200,000 USD with a lending rate of two percent per annum at the age of 50 and wishes to repay them by the age of 65 must raise a monthly rate of 1,287 USD.

Anyone who wants to work against the risk of “65 credit” should, among other things

  • With special repayments, counteract a follow-up financing beyond the age of 65.
  • Initiate funding for planned age-appropriate tags while still working.

Request a free quotation for individual mortgage lending

Request a free quotation for individual mortgage lending

As every home loan should be tailored to your needs, we recommend that you consult an expert when planning the financing. Using the form below, you can request a free and non-binding financing consultation and a corresponding offer, one of the leading mortgage loan intermediaries in Germany:

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