More and more people are embarking on a real estate project after 50, whether to acquire a main residence or to invest in real estate. However, the path is not easy once you are over fifty. The approach of retirement indeed seems to be holding back banks because of the drop in income that accompanies it. The borrower may also have difficulty insuring his mortgage at a good price because of his age. However, it is not impossible to take out an advantageous mortgage after 50 years. Just follow the following tips.
In principle, all banks agree to set a debt ratio of 33% when applying for credit. This implies that no borrower should give more than a third of his income to the repayment of his debts at the risk of experiencing over-indebtedness. But apart from this criterion, banks also tend to check the rest of borrowers to ensure that they will be able to pay the monthly payments. The rest to live represents the amount remaining to the borrower after having paid his monthly payment and which allows him to ensure his expenses and his other needs. If this remainder to live is insufficient, obtaining financing is compromised. Moreover, as you approach retirement, it is not enough to check your current living balance. We must also anticipate the fall in income that will follow.
Most real estate loans signed are made by a depreciable loan whose monthly payment remains unchanged throughout the duration of the contract. But after 50 years, this is no longer advisable. The best way to borrow after the age of fifty is to take out an adaptive loan, that is to say, a loan that adapts to the level of income of the client. Thus, you will have higher monthly payments as long as you are active and have substantial income. And once you retire, you will switch to a reduced monthly payment in order to adapt to your means.
Loan insurance can represent a relatively large part of the cost of the real estate project. Indeed, depending on the risks incurred by the borrower, the insurance premium is likely to range from 100 to 400%. The older you are, the higher the cost of coverage will be. However, insurers are free to set their prices, which makes it possible to find cheaper loan insurance by looking carefully. To go around all the offers available, there is no more effective tool than the online insurance comparator.
Beyond the age of 50, your borrower profile will no longer be as attractive as that of a young borrower, even if the possibility of taking out a mortgage remains. Because you no longer constitute a profile of choice, it is in your interest to optimize your file as well as possible. To do this, you can offer a larger personal contribution or additional guarantees. It is for example possible to place as collateral by pledge a property acquired previously the loan application.
The broker is a real estate loan professional whose mission is to find you the most interesting offer corresponding to your needs. The professional uses his expertise and his network of partner banks to direct you to the organization best able to meet the expectations of his clients. Not only will he take care of the research for you and negotiate your contract, but he will also provide you with ongoing support from the creation of your file to obtaining your financing.
