“Then you can reduce it if your income changes when you reach retirement age.” All three – the seller, my husband and I – were waiting for the partner bank’s test results. But how do you finance a new car or motorcycle in old age? The rates are certainly tempting, but the return becomes a problem after the lease expires. For many, a significant increase in interest in old age is only s!
For the various forms of financing (eg credit) there is an age limit that can be met at the end of the term. The loan or credit must be repaid in full upon reaching this age limit. As a rule, the maximum age is 80 years for mortgage loans and 95 years for construction loans. This can lead to a restriction of the selection of the desired or required terms due to the maximum age, which also prefers the variant of a building loan loan.
Buying a property too old for a loan
Creditworthiness with expiry date: Senior citizens are often classified as less creditworthy. Senior citizens prefer handy apartments that can be kept in good condition without much effort. The case study Peters is almost legendary and irritating at the same time. Some time ago, the former Member of Parliament and later President of the Federal Chamber of Architects wanted a condominium in Stgt at the age of 70.
His bank refused the new customers the required loan in the amount of $ 200,000. Reason: As a borrower Konradi is too young. The B? Ros’s parent against age discrimination knows in what cases older people are not taken seriously, excluded or disadvantaged by banks and savings banks. “The worse the conditions that are offered to them.”
He said he was lucky to find out who would get a loan because of his old age. This is because many institutions, at least informally, have their own age limits when granting loans. Age is not a “knockout” criterion. Often, they also have to act as fellow citizens or guarantors. However, the economy, like the Bundesverband der Privat Wirtschaft, emphasizes that age is generally not a knock-out criterion when it comes to granting loans.
Of course, the local institutions have let it depend on the specific case, whether the thumbs were raised or lowered. The spokeswoman of the Federal Association of German Banks, Dr. med. med. Kerstin Altendorf, however, emphasizes the decisive factor: “For the credit institutions, it is crucial that the borrower can pay his debts. For the head of FMH Financial Consulting in Frankfurt, Dr. Ing. med. Max Herbst, it is no coincidence that financial institutions comply with age restrictions when granting mortgage loans.
Anyone who needs a construction loan as a so-called “Best Ager” must therefore probably have their own experience and take advantage of the ever fiercer competition of the credit institutions. However, interest rate hedging on home equity financing assumes that the owner or acquirer receives a loan at all. In any case, the results of the FMH study show that some credit institutions should not impose restrictions or make their decisions on a case-by-case basis.
The other institutions need to repay at least two percentage points of the initial loan (usually one per cent) or want a child, including other relatives, to become a citizen or provide a guarantee. An even more restrictive granting of construction loans to the elderly could take place with the implementation of Basis 2 planned for 2007. In this case, the client is classified more according to his credit or default risk.
The most important criterion in the future will be the age of the potential owner and financier. The elders would be due to Basel requirements for applicants with poorer creditworthiness, he fears. However, as soon as a bank or savings bank prevails, the older customers should have clear limits, “investing by no means all their capital in the financing, even if the institutions require it,” said Expert Herbst.