Are you at the end of your working life or have you already stopped working and want to borrow to finance a property? From a legal point of view, no age limit is imposed to carry out such a project. But there are some things to consider. Here they are in brief.
Draw on savings or use a bank
Seniors who plan to acquire real estate can finance their project by drawing on their savings or negotiating a loan from a bank. This last option is usually the most judicious and the most profitable because it allows the future purchaser to continue to benefit from the advantages – fiscal in particular – of the savings products which it has.
The elderly constitute a privileged clientele for bankers because they are, on the one hand, most often creditworthy and generally have on the other hand a considerable quantity of material goods as well as a well stocked woolen stocking. Borrowing large sums of money does not therefore represent a major difficulty for them. However, given their age, the statistical risks of medical history, disability and death are higher than among younger borrowers, and consequently, the chances of defaulting on the loan are increased.
Despite the fact that banks today grant loans to seniors more easily (mainly due to their greater purchasing power) and have adapted their supply of financial products to the aging of the population, they require concrete guarantees before conceding a loan. Home loan insurance is one of these essential requirements.
Purchasing senior borrower insurance
Once you have found the banking institution that accepts to lend you the money required to finance your real estate project, you still need to be able to meet this mandatory mortgage loan requirement.
There are of course the insurance contracts offered by the banks, but you should know that the latter put an end to guarantees for people over 65 years of age .
Seniors can also turn to an insurance company. In doing so, the amount of their contribution may however be higher, the guarantees relating to invalidity and death could end from a predetermined age and the state of health of the insured will most likely be scrutinized.
In order to carry out their project, seniors have every interest in taking out suitable individual borrower insurance. By putting the various insurance companies in competition with the help of online borrower insurance comparators, they can in a few clicks get the quotes that best suit their situation. Brokers are able to recommend interesting avenues to meet their specific needs.