Is it possible to face a real estate investment during retirement?
Moving to a more modern apartment, buying a house on the beach or in a rural area, financing the house of your children, these are some of the reasons for acquiring real property during retirement. But is age a problem to buy a home? This question is, perhaps, the main concern of this group, especially if they do not have enough savings and need to apply for a mortgage loan. The loan is possible, but there are a number of conditions that should be taken into account.
When granting credit, banks require that none of the owners exceed 70-75 years at the end of the payment (some even put the cap in 80 years). Therefore, the maximum term to grant would be 10 years, 15 if it is early retirement.
Maximum 50% financing:
If the savings are very scarce, enroll in Medicare supplement plan G 2019 unless a very high income is available, the granting of the mortgage becomes more complicated. As a general rule, the financing of a bank would be at 80% of the price of the property. In this case, experts recommend that it does not exceed 50%, so there is greater ease of payment.
First home in property?
Having first home ownership facilitates the granting of the mortgage. The most advisable thing is to sell it and increase the percentage of savings to contribute to the purchase. If you decide not to follow this route, you can also opt for the rent and, with the monthly rent, deal with the loan.
Stability of income, point in favor:
In principle, the pension is a guaranteed salary that is charged every month. The risk is lower and that is taken into account by the bank. Another factor that can help is to have a private Pension Plan that pushes your income and allows you to more comfortably face the monthly fee.
Early retirees, greater possibilities:
They are the ones with the most options for the bank to grant them a mortgage. They range in age from 55 to 65, tend to have a medium or medium-high socioeconomic profile and usually charge higher pension tranches.
Fewer interest rates and no life insurance:
This type of mortgages, being shorter and with higher rates, the interest payable will be much lower than in one to 30 years. Regarding the linked products, depending on the age, the buyer will save life insurance, since this only covers up to an age limit of 65 years. In addition, the amortization insurance will only cover the person up to 70 years.