Until what age do they give a mortgage on housing? Mortgage for pensioners

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

If you want to buy an apartment or a country house right now, but do not have enough cash, you have only one way out - a mortgage. Until what age do they give such a loan at Sberbank and other financial institutions? And is it possible to fulfill your dream even after retirement?

In this article we will try to answer these and some other questions. So, if you don't know up to what age they give a mortgage on housing, read carefully.

Why does age affect mortgages

First of all, let's talk about why age limits in this matter are so important for banks.

Everyone comes to the idea of buying their own home in their own way and at different times. Someone wants to resettle overage children or make a gift to grandchildren. And someone decides, at least in old age, to improve their own living conditions and live in comfort. Regardless of the reason, the positive decision of the financial institution to issue a mortgage will depend onfirst of all, on the expected level of income of the client in the next 10-20 years. This is quite understandable. After all, a mortgage involves a rather impressive amount, and its repayment period sometimes stretches up to a quarter of a century.

In general, the age limit for issuing a mortgage is set at 18–60 (55) years. But the attitude towards customers of different ages among bank employees is very ambiguous.

The best age to get a mortgage is considered to be 35-45 years. It is during this period of his life that a person reaches a stable financial position, actively builds a career. There are still many years ahead for development and satisfaction of their desires. And all efforts are aimed at improving the conditions and quality of life.

After fifty years, a person's life begins to acquire certain risks. It is with this that the answer to the question of up to what age they give a mortgage is connected. First of all, the onset of retirement age is inexorably approaching, and hence the probable loss of work. Increased risk of disability due to illness, disability. It is also no secret that natural mortality rates after 60 years of age are growing rapidly. These and some other reasons force banks to strictly adhere to the upper bar of age restrictions when issuing a mortgage loan.

Until what age can I get a mortgage loan?

Usually, along with retirement, a person loses additional sources of income, stops working. Therefore, according to banks, by the time a person enters a well-deserved rest, he must repay the existing mortgage loan. So, when accruing regular payments, the lender seeks to meet the time period from the moment of registration to the hour “X”. In practice, this means that the loan term steadily decreases as the age of the borrower increases.

Here is an example:

The financial institution offers mortgages for up to 25 years. A 50-year-old man applies for a loan. Since he has another 10 years to work before retirement, the maximum period for which it is possible to obtain a mortgage for him is only 10 years. Of course, in this case, the monthly payment will be a tidy sum, and you will need to have a sufficient level of income to cope with such a financial burden.

However, sometimes banks make concessions. If the client has excellent recommendations, a high level of income, the ability to invite co-borrowers at the conclusion of the contract or provide good collateral, the lender can meet him halfway and slightly extend the mortgage loan term. True, such an increase rarely exceeds 5-6 years.

Mortgage lending after 40

Despite the fact that banks are very scrupulous about the age of the borrower, a mortgage for pensioners is still possible. Some financial institutions are developing special loan programs that allow you to get a housing loan for up to 20 years. At the same time, the condition is most often put forward that by the time of full repayment, the borrower should have no more than 75years.

Not all citizens of pre-retirement age can take part in such a lending program. There are several criteria that can positively influence a bank's decision to grant a loan. Mortgage for pensioners is quite possible in such cases:

1. The borrower continues to work even after receiving a pension. A source of constant additional income will definitely increase the chances in the eyes of the lender.
2. The client is in a family relationship, does not have young children and various types of dependents. Banks prefer married couples to single people. After all, in this case, the total family income increases significantly, which means that the risk of non-repayment of funds decreases.
3. The pensioner owns real estate sufficient to provide additional financial security for the loan. If the provided collateral has high liquidity, the pensioner will not only be able to get a mortgage, but also have the right to count on favorable lending conditions.
4. A borrower of retirement age can attract a sufficient number of solvent guarantors (co-borrowers). Most often, such “guarantors” are children, grandchildren or other relatives. Moreover, the presence of family relations in this case is mandatory. This is due to the fact that in the event of the death of the borrower, the obligation to repay the mortgage passes to the co-borrower.

In addition, guarantors must also have certain qualities:

• be of working age;
• have a goodcredit history;
• confirm a high level of solvency.

Banks and pensioners

For an example, let's look at the age until which they give a mortgage on housing in different banks of Russia.

AlfaBank sets the most stringent age requirements. Here they can issue a mortgage if, by the time of its repayment, the borrower is 54–59 years old (for women and men, respectively).

Up to 55 years old (women) and 60 years old (men) are ready to wait at Rosbank, MetallinvestBank and Bank of Moscow.

Standard 65 years is the age limit for obtaining a mortgage in Uralsib, Expert Bank, MBC, Niko Bank, SKB and some other financial institutions. That is, this is exactly how much you should be before the moment the last mortgage payment arrives on the bank account of the credit institution.

The most loyal in this regard are VTB24 and Sberbank. In the first, they are ready to wait until the borrower's 70th birthday, and in the second, until he turns 75.

Where else do pensioners love

And until what age do they give mortgages in other banks? Among the huge number of financial and credit institutions, mortgage lending for pensioners is available, first of all, in the following:

• Gazprombank;
• Rosselkhozbank;
• "Admir alty";
• TransKapitalBank and others

Where to go is up to you. If you were refused in one bank, no one can forbid you to apply to another.

Mortgage at Sberbank

Let's take a closer look at the terms of the mortgage for pensioners at Sberbank. There are several types of programs for older citizens:

• 55/60 years for women and men, respectively, government-supported mortgage option;
• 45 years - Mortgage lending project for military personnel;
• 75 years - the program provides for the construction of a country house, as well as the purchase of housing in a new building or on the secondary market.

Of other parameters, special attention is paid to two points: wages and continuous work experience. Based on the level of total income, the volume of the loan, its term and the need to attract additional collateral are determined. Seniority is checked for stability and continuity.

For all programs, the interest rate at Sberbank is set at the same level and amounts to 12.5%.

How to be a pensioner?

If you do not know up to what age they give a mortgage in a particular financial institution, the surest way is just to go there. Even if your age causes some concern, most likely, you will be offered at least two options for getting out of the situation:

• select a program that allows you to pay off your mortgage after retirement;
• offer to issue a standard contract for the number of years left until the promised hour.

Which one to end up with -It's up to you, of course. But do you really need a mortgage? Age restrictions will not be the only obstacle to obtaining it. Loan conditions for older borrowers differ significantly from what can be offered to young borrowers:

• loan term rarely exceeds 15 years;
• lowest down payment usually increases to 20-25%.

In addition, you will be asked to insure life and he alth. But the cost of such a policy will rise in proportion to your age. So when applying for a mortgage loan in adulthood, it is worth weighing all the pros and cons. It is likely that there will be more negative arguments, and you will prefer to take out a mortgage on a younger family member.