Faced with a real estate market in crisis, more and more affluent seniors find it difficult to obtain credit for the purchase of a home. This situation reveals contradictions in the current banking system and arouses the anger of these potential buyers.
A crisis that affects even wealthy households
In the context of the current real estate market, finding the ideal property is a difficult step, but it would seem that selling your old home or obtaining a loan to finance the new one is even more complicated.
Many people find themselves like this stuck between two transactions, unable to sell their property and borrow for a new purchase. This concerns in particular affluent seniors unable to borrow from banks, despite their solvency. At the same time, from nmany properties suffer significant discountseven when they have been completely renovated.
Seniors penalized by their age and income
The main reason for this paradoxical situation lies in the credit granting criteria applied by the banks. These are usually reluctant to grant mortgages to seniorsbecause of their advanced age and associated health risks. Seniors with high incomes may also be penalized by debt limits imposed by banksthus limiting the amount they can borrow.
Discriminatory criteria?
Some believe that these criteria are unfair and discriminatory against seniors, who nevertheless have the means to repay their loan. They also denounce a lack of flexibility on the part of the bankswhich refuse to take into account the overall financial situation of potential borrowers, such as their rental income or their financial investments.
An unusual phenomenon in times of crisis
In normal times, banks would be more inclined to lend to wealthy households, especially when they have a large down payment. However, the current crisis seems to have upset this logic. Thus, we observe a unusual phenomenon : individuals who buy a property without resorting to credit, either because they have succeeded in selling their old home, or because they have sufficient savings to finance their purchase.
Affluent households struggling to borrow
Unfavorable credit granting criteria for seniors A real estate market disrupted by the crisis An increasing phenomenon of buying without credit
What solutions for seniors?
Faced with these difficulties, seniors wishing to buy a home must redouble their efforts and strategy to convince banks to grant them credit. Among the possible solutions:
Negotiate with your bank : by promoting its financial assets (rental income, investments, etc.) and by putting several banking establishments in competition with each other.
Call a broker : this professional can help build a solid case and find the bank most inclined to grant the loan;
Opt for individual borrower insurance : by taking out specific insurance with an organization other than the bank, it is possible to reduce costs and benefit from coverage that is more suited to your situation.
Ultimately, despite the obstacles, it is important not to be discouraged and to remain proactive in your efforts to obtain credit. Indeed, your experience as well as your heritage can constitute significant assets in the eyes of the banks.
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