Real estate mortgage: what opportunities for people in their 60s?

credit immobilier possiblites sexagenaires

Real estate is an investment sector open to all generations. And the possibilities of a mortgage for real estate are even sometimes more favorable for the sixties. 60 years is the ideal age to take out a mortgage with banks.

Multiple investment solutions

Since the retirement will certainly reduce your income, it is advisable to carry out an early simulation. You can calculate the amount of possible monthly payments at retirement and you put them aside right now. You also have the choice to make a tiered loan: first you pay higher monthly payments while you are still working, then you will decrease them as the date of your retirement approaches.

A loan in 10 to 15 years

The loan repayment deadline is often your 75th birthday. On average, loans only last 10 to 15 years. This is the only difference in the situation of the 60-year-olds compared to the young borrowers. On the other hand, for the borrowing capacity or the debt ratio, the banks consider the same criteria for the 35-year-old borrowers as for the 60-year-old borrowers.

Higher insurance rate

The borrower insurance is a very important criterion just like the loan in itself at 60 years. Banks often apply an insurance rate of 0.5% to 1% among people in their 60s if they are only 0.3% among those under 35 years of age. At 60, your state of health is indeed considered more fragile, resulting in a somewhat higher insurance rate than that of credit.

In the event that the banks refuse you insurance, you can always move this guarantee on a property or an investment like life insurance. If you invest in a second home worth 150,000 euros, while owning a principal residence worth 300,000 euros, you can use the latter as a guarantee. On the other hand, if a serious problem manifests itself, the insurance will not be able to take over the repayment of the monthly payments, or the capital remaining due. You risk selling one of the acquired assets.

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