09.02.2022 – 10:04
KVB Finanz
Limburg (ots)
The well-deserved retirement has been achieved, but the pension or the savings are not enough to finally fulfill the long-awaited wishes? A loan could help, but banks all too often reject it with reference to the old age of pensioners. But that doesn’t have to be the case: with a little skill, seniors can refer to their numerous advantages as borrowers when applying for a loan.
With retirement, a completely new phase of life begins for many older people, in which they finally have time for the many beautiful things in life. While some want to spend the rest of their lives finally traveling more, others are planning to remodel or modernize their home. But not everyone has enough savings to actually fulfill these wishes and dreams. In addition, the pension is significantly lower than the previous income and the money may not be enough for larger purchases. A loan usually helps out, but pensioners in particular often have the disadvantage when lending. From the age of 60 it is much more difficult to get a loan from a credit institution. After all, the higher the age of a borrower, the more uncertain it is for the bank to fully repay the borrowed amount. There is some evidence that pensioners are the better borrowers. With your pension, you will receive a regular income, which is low, but you are considered a binding borrower. If you own your own house, you have already paid it off at retirement age and can offer the property as collateral for a loan. In addition, pensioners are often much more experienced in financial matters and are characterized by a good payment morality.
Requirements for a loan application at retirement age
Even if the hurdles are a little higher, seniors can still get their desired installment or real estate loan. Here it is important not only to take into account age limits, but also to effectively use the creditworthiness, loan amount and term for yourself. A 65-year-old pensioner usually has a better chance of getting a loan than a pensioner who is over 75 or 80 years old. The chances of success are also significantly greater if seniors choose a loan with manageable contributions and the shortest possible terms. KVB Finanz recommends that, in the best case, pensioners repay all debts up to the age of 75 or 80 – depending on the individual starting situation, large construction financing is still possible even with older age. With a good credit rating and the prospect of higher monthly installments, higher loan amounts are therefore feasible. Only a few banks lend to seniors who have already reached the age of 80. Provided in this case is definitely an excellent credit rating.
Compare loans with KVB Finanz and take into account residual debt insurance
In order to find a suitable loan and to increase the likelihood that it will actually be approved, it is necessary to compare several loan offers, especially at retirement age. Seniors in particular tend to apply for a loan from their long-standing house bank. However, this is not always the best offer and a comparison is worthwhile. When looking for a loan, it is recommended to seek professional assistance. Thus, the financial experts of KVB Finanz have the necessary expertise and many years of experience to select a suitable loan for borrowers from the large number of offers. According to the individual financial situation of seniors, financial professionals take into account the length of the term, the amount of monthly installments and the assigned interest rate. The experts can also include free special repayments, which some credit institutions offer, in their selection. Special repayments provide pensioners with the opportunity to repay a loan more quickly due to irregular or unforeseen earnings, thereby reducing the residual debt and the remaining term of the loan. For installment loans as well as for construction financing, there is also the option of taking out residual debt insurance. Although this is associated with higher costs, it covers loans in the event of illness or death and banks accept residual debt insurance as security.
Calculate financial leeway and loan amount as accurately as possible
Seniors can also increase the chances of getting a loan by accurately calculating and calculating their money requirements and their financial leeway. A loan amount that is too high should be avoided as well as one that is too low. While in the first case the term is significantly extended and more interest accrues than necessary, in the second case an expensive refinancing may be necessary, which is often only granted under difficult conditions. In any case, pensioners are well advised to compare their income and expenses in as much detail as possible before applying for a loan. Financial reserves must also be taken into account as a financial buffer for unforeseen expenses. Only if there is enough money left over monthly with which the loan installments can be paid, it is worthwhile to apply for a loan. The following also applies to pension loans: the higher the equity ratio, especially in the case of real estate financing, the more likely it is that a loan application will be approved.
Second borrower and SCHUFA correction increase chances for a loan
Pensioners can compensate for their old age, which has a negative effect when a loan is approved, in a positive way by providing the credit institution with additional collateral. This includes, for example, proof of a paid-off property or savings balance, which can provide relief in the event of a default. Additional security is also provided by a real estate pension, in which pensioners sell their property to third parties and receive a monthly pension in return for a specified period of time. While the right to live and the pension exist for life in the case of the life annuity, it is set for a shorter period in the case of the temporary annuity. A sale against usufruct or a partial sale of the property are also real estate retirement models that are eligible for seniors. Other possible collateral for a loan application also include income from rent or lease interest, guarantees from relatives, a mortgage or mortgage for loans with a longer term or the transfer of security when buying mobile assets. A second borrower also provides the bank with additional security. Thus, with a loan, pensioners can include another applicant in the contract. If he is younger, this has a positive effect on the approval of a loan. However, it is important that the second borrower has a high and secure income and is able to pay the monthly loan installments due. In addition, seniors can improve their creditworthiness by obtaining a SCHUFA self-assessment and, if necessary, have outdated or incorrect information corrected. After all, the SCHUFA score significantly influences the decision of credit institutions when granting loans. Positive entries underline the good payment ethics and creditworthiness of borrowers and increase the likelihood that they will receive a loan.
KVB Finanz supports pensioners in applying for a loan
Whether it’s a new car, modern housing equipment, the creation of a garden or the long-awaited trip: pensioners who have only a small pension or whose savings are not enough, do not have to do without the realization of their wishes. They have the opportunity to put their old age, which is often negatively assessed by credit institutions when granting financing, into the background and to score points with their excellent payment ethics. This can be achieved by relying on additional collateral, a high credit rating, manageable loan amounts, short maturities or a second borrower when applying for a loan. As a permanent contact, KVB Finanz supports you in finding the right offer and finally fulfilling your heart’s desire. With the Deutscher Rentenkredit brand, the financial service provider has specialized in granting credit permits to pensioners despite their age.
About KVB Finanz GmbH
Since its foundation over 45 years ago, the Kloetzel family has been working with KVB Finanz to determine the best financing concepts, individually tailored to the needs of its customers. For the traditional family business, your customers and personal proximity to you are the absolute focus. Fair conditions, professionalism and a sense of responsibility are the highest maxims. KVB Finanz always thinks and acts about family for families in generations.
Press Contact:
KVB Finanzdienstleistungsgesellschaft mbH
Marc Kloetzel
Johannes-Mechtel-Str. 2
65549 Limburg/Lahn
Phone: 0 64 31 / 29 4 70
Fax: 0 64 31 / 23 77 6
E-mail: [email protected]
https://www.kvb-finanz.de/
Original content from: KVB Finanz, transmitted by news aktuell
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