If you want to buy an apartment or a country house right now, but don’t have enough cash, you have only one option - a mortgage. To what age do they give such a loan to 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 also do not know how old they give a mortgage for housing, read carefully.
Why age affects mortgages
First of all, let's talk about why age restrictions on this issue are so important for banks.
Everyone comes to the idea of ​​acquiring their own housing in their own way and at different times. Someone wants to resettle over-aged children or make a gift to their grandchildren. And someone decides, at least in old age, to improve their own living conditions and live in comfort. Regardless of the reason, a positive decision of a financial institution to issue a mortgage will depend, first of all, on the expected level of client income in the next 10–20 years. This is understandable. After all, a mortgage assumes a rather impressive amount, and its repayment period sometimes stretches to a quarter of a century.
In general, age limits for issuing mortgages are set at 18-60 (55) years. But here the attitude to customers of different ages among bank employees is very ambiguous.
The best age for obtaining a mortgage is considered to be 35–45 years. It is during this period of his life that a person achieves a stable financial situation and is actively building a career. There are still many years ahead for the 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 take on certain risks. It is with this that the answer to the question of how old a mortgage is is given. First of all, the onset of retirement age is inexorably approaching, which means the probable loss of work. The risks of disability due to illness, disability are increased. It is also no secret to anyone that natural mortality rates after 60 years are growing rapidly. These, as well as some other reasons, force banks to strictly adhere to the upper bar of age restrictions when issuing a mortgage loan.
How old can I get a mortgage?
Usually, along with retirement, a person loses additional sources of income, stops working. Therefore, in the opinion of banks, by the time of going on a well-deserved vacation, a person should pay off an existing mortgage loan. So when calculating regular payments, the lender seeks to keep within the length of time from the moment of registration to the hour “X”. In practice, this means that the loan term is steadily decreasing as the age of the borrower increases.
Here is an example:
A financial institution offers mortgages for up to 25 years. A 50-year-old man applies for a loan. Since he still has to work another 10 years 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 opportunity to invite co-borrowers at the conclusion of the contract or to provide a good guarantee, the lender can meet him and extend the mortgage loan term a little. True, such an increase rarely exceeds 5-6 years.
Mortgages after 40 years
Despite the fact that banks are very sensitive to the age of the borrower, a mortgage for seniors is still possible. Some financial institutions are developing special loan programs that allow you to get a housing loan for up to 20 years. Moreover, the condition is most often put forward that by the time of full repayment the borrower should be no more than 75 years old.
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 issue a loan. Mortgage for seniors is quite possible in such cases:
- The borrower continues to work even after applying for a pension. A source of constant additional income will certainly increase the chances in the eyes of the lender.
- The client is in a family relationship, does not have young children and all kinds of dependents. Banks prefer couples to single people. Indeed, in this case, the total income of the family increases significantly, and therefore the risk of non-return of funds decreases.
- A pensioner owns real estate property rights sufficient for additional material security of a loan. If the collateral provided has high liquidity, the pensioner will not only be able to get a mortgage, but also has the right to rely on favorable credit conditions.
- 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 kinship 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 some qualities:
- to be of working age;
- have a good credit history;
- confirm a high level of solvency.
Banks and senior citizen
For example, let's look at how old they give a mortgage for housing in different banks of Russia.
AlfaBank makes 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 (women) and 60 years (men) are ready to wait at Rosbank, MetallinvestBank and Bank of Moscow.
The standard 65 years is the age limit for mortgages at Uralsib, Expert Bank, MBK, Nico Bank, SKB and some other financial institutions. That is, exactly how much you should be fulfilled before the moment the last payment on the mortgage is received on the bank account of the credit institution.
The most loyal in this respect are VTB24 and Sberbank. In the first, they are ready to wait until the 70th anniversary of the borrower, and in the second until he turns 75.
Where else do senior citizens love
And to what age do they give a mortgage in other banks? Among the huge number of financial institutions, mortgage lending for pensioners is available, first of all, in the following:
- Gazprombank;
- Russian Agricultural Bank;
- Admiralteysky;
- TransCapitalBank, etc.
Where to go is up to you. If one bank is refused, no one can prohibit you from contacting another.
Mortgage at Sberbank
Let's take a closer look at the mortgage conditions for pensioners at Sberbank. Here for older citizens provides several types of programs:
- 55/60 years for women and men, respectively, - a mortgage option with state support;
- 45 years - mortgage lending under the 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 in the secondary market.
Among other parameters, special attention is paid to two points: salary 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. Experience is checked for stability and continuity.
For all programs, the interest rate at Sberbank is set at a single level and amounts to 12.5%.
How to be a pensioner?
If you don’t know how old a mortgage is in a financial institution, the surest way is to go there. Even if your age causes some concern, most likely, you will be offered at least two options to get out of the situation:
- they will select a program involving the possibility of paying off a mortgage after retirement;
- They will offer to draw up a standard contract for the number of years remaining before the treasured hour.
Which of them to stop in the end is up to you to decide. But do you really need a mortgage? Age restrictions will not be the only obstacle to obtaining it. Lending conditions for older borrowers differ significantly from what may be offered to young:
- loan term rarely exceeds 15 years;
- The smallest down payment usually increases to 20–25%.
In addition, you will definitely be asked to insure life and health. But the cost of such a policy will rise in price in proportion to your age. So when applying for a mortgage loan in adulthood, you should weigh the pros and cons. It is likely that there will be more negative arguments, and you will prefer to arrange a mortgage for a younger family member.