Older people also like to invest in real estate and optimize their return on equity. But they often need a loan to do so. However, some banks have set a credit age limit for borrowers. That’s where the question comes in:
Up to what age can you get a loan?
I am asked this again and again. Very often this question also came up during my time as a financing specialist.
Some people came to me and said that they were already 50 years old too old, to still loans to get. That is why I would like to comment on this topic.
Banks assess borrowers’ credit age differently
It is the case that the banks all have quite different specifications and approaches to the Assessing their borrowers have.
Some say: "At 65 is the end."Others say: "Up to 69 is still okay."This is always different.
The bank’s goal in granting loans to older persons
But the fact is: the bank would of course like the borrower to also have the complete repayment of the loan still experienced. The bank’s goal is not to deal with the heirs or community of heirs and possibly then have to foreclose on the property as well.
So normally the banks will judge in such a way that they say "Okay, the person will most likely live to see it". Say at 90, of course, it is difficult to still get a loan.
If you have a good credit rating, the loan age limit is less important
It is different z.B., if someone still has quite a lot of money in the account, so theoretically could repay his debts quickly at any time. Then the bank will certainly also assess this positively. In principle, a debtor is of course more attractive if he has a good credit rating.
Especially older people who do not have much assets, usually fall through the cracks there. You can hardly get a loan even for the purchase of a new heating system for the owner-occupied cottage.
But you can’t say it’s a basic maximum age for all gives. This is definitely not the case and as I said, the banks all have different guidelines. In addition, there are many older people who want to move again and downsize after the children have left home. An age limit for borrowers would be very obstructive in this respect.
So even at 50 or 60, you’re not fundamentally too old. Rather, you should check with several banks and get a financing offer. And this is best done early, as I describe in another article.
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