A construction or real estate lending in General, about 20 to 30 years. So much time people have, but after your 50. Birthday, possibly, not at all. Also, it is hard to find a home so quickly to pay off that rent in the pension age and grace can reside. However, Difficult does not mean impossible, and just because something is not Finance, you must not let it. Who wants to buy nevertheless, at the advanced age of your property, you should note the following:
1. How much time do you have?
Many banks for real estate loans, a maximum age up to which the credit is paid off must be. That is, depending on the Bank varies and can be approximately 65 or 75 years. This limit and your age to determine how long the maximum duration of your real estate loan.
After the conditions are determined in turn. You must reimburse the loan in ten years, you will need an annual repayment rate of at least eight percent. This leads to high monthly installments: In the case of a loan of 200,000 euros would be, for example, at 1.801,67 euros at an assumed borrowing rate of 1.55 percent per year. You could pay off the same sum for over 20 years, it reduces your monthly rate to 1.041,67 Euro.
2. How much money do you have?
Who beyond his 50. Birth day is, usually has two advantages over Younger. Firstly, your salary is usually higher, because you have risen in your profession. This allows you to have higher monthly instalments to pay for a loan.
Secondly, you may have noticed over the years assets. The more such equity can you contribute to the home purchase, the less money you need to borrow from the Bank. You can pay for a property completely out of the Saved, of course, unnecessary all further Credit.
More equity, but also very cheap. In the case of a property worth 200,000 Euro (including all costs) and equity of ten percent of the value, i.e. EUR 20,000, the monthly credit rate for a term of ten years, 1.600,50 Euro. They bring in twice as much equity, reduces the loan amount to 160.000 Euro and the monthly rate in order to 1.413,33 Euro. Who can even Finance half of the money Saved, pays only 876,67 Euro per month.
3. How flexible is your Bank?
In their Consideration should not be only whether you can afford such a monthly installments today, but also how it looks over the entire term of your loan. Rises in their pension, you might have to use a large part of the real-estate credit, which can mean a high financial burden.
To mitigate, you can negotiate at the conclusion of the loan with your Bank. So about clauses in the contract, insert the unique special repayments or retrospective adjustment of the amortization rate of their living conditions. Then you can use such as the payout of a life insurance policy or an inheritance directly to your credit.
4. What must the request of the Bank, and what is not?
banks are very careful, only loan agreements with them, where you also get guaranteed money. To do this, you are obliged now by law. Therefore, it may be that a Bank wants to check your pension forecast or your pension decision, to check, how liquid it will be in old age.
you do Not have to accept, however, that if the banks demand that their children or other relatives involve or a residual debt insurance. The latter would pay off the Bank, if you inherit prior to the expiration of the loan.
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In the FOCUS Online/Wochit consumer advocates warn that The Fall the greatest when you need a loan to csa property house buying age home financing loan