Vis-à-vis the law, there is no age limit for taking out a mortgage. Thus, whether the senior is 60, 65 or 70 years old, he remains eligible for this banking system. The difficulty will rather be at the level of borrower insurance, because insurers tend to impose age limits generally turning around 60 years. So what are the solutions if you have passed this age? Answers.
There are many misconceptions about mortgages. Many people are convinced that it is impossible to obtain a loan as a senior. However, this is false since the banks have become aware of the potential of retirees. In addition to having fewer expenses since the children have left the nest and most of the credits have been settled, they enjoy more stable income thanks to their retirement pensions. Thus, even if a retiree earns less than an active person, he has more regular cash inflows. The real complication will concern borrower insurance. It is difficult if not impossible to qualify for a mortgage without obtaining this coverage. However, insurers are very reluctant to grant a contract to the elderly, believing that the risk is too high.
As a reminder, borrower insurance is intended to replace the borrower on the repayment of his monthly payments in the event of disability, incapacity or death, i.e. all risks that affect more individuals of a certain age. Despite the increase in life expectancy and advances in medicine and technology that prevent illness and accidents, insurance companies are not reassured. To protect themselves, they even go so far as to apply age limits. On the one hand, there is the age limit for subscription with which, beyond a certain threshold, it is no longer possible to join. On the other hand, there is also the age limit for the termination of guarantees. Thus, as soon as the senior reaches a predetermined age, he can no longer be covered, even if he has not yet finished repaying his loan.
It is especially the group contracts offered by the banks which are very demanding on the age of their subscriber. In general, the price of premiums is more expensive for people over 65. In addition to displaying high tariff schedules, bank contracts tend not to take into account the specific risks of policyholders. If a senior feels the need for more extensive cover adapted to his situation, he will have to pay high premiums. Worse, it happens that these offers no longer cover beyond 70 years. In this context, it is recommended to move towards the delegation of insurance. The idea is to subscribe to an insurer outside the bank so as to be able to access more attractive prices and above all better conditions and guarantees.
Indeed, all the advantage of these external insurances is that they are created in a tailor-made way to fit perfectly with the needs of the insured. Some agree to take care of a borrower until he is 90 years old as well as a subscription to a death guarantee up to 85 years old. And if ever the insured feels that the contract does not ultimately suit him, he is free to change insurer thanks to the Hamon law and the Bourquin amendment to the Sapin 2 law. imperative to take stock of the guarantees to be included in the contract. For a retiree, choosing a professional disability guarantee (IPT) or a work stoppage guarantee (ITT) is useless. The choice of good guarantees will also help to lower the amount of the insurance premium.
