If more than a third of your income has to be spent on the mortgage, it is no longer considered affordable.
Finances: Is there enough money for the mortgage? With retirement income, there are suddenly fewer financial resources available. – Pexels
Ad
the essentials in brief
- Early calculations show whether the loan will remain affordable in old age.
- Real estate pensions and early savings measures ensure affordability.
- Property can be transferred to children.
Real estate buyers often underestimate themselves when taking out the loan. The income was sufficient during my working life. After retirement, however, it suddenly becomes scarce and is no longer enough to meet the payments.
If additional expenses are added, the mortgage loan is often no longer affordable. This means: interest and additional costs exceed a third of your regular income. If this situation persists, the loan must be terminated and the mortgagee loses possession.
Finances: Savings during your working life to support the mortgage after retirement
If it becomes apparent that a loan is no longer affordable in old age due to finances, savings measures can be taken to counteract this. Regular deposits into a savings account during your working life reduce the financial burden in old age. They also give the property owner new leeway when negotiating with the bank.
A mortgage can be more of a financial burden in old age than it would be during your working life. – Pexels
If the mortgage cannot be afforded in old age, seniors have the option of selling the house. If you have children, you can transfer the property to them.
Children as joint and several debtors for the mortgage
Alternatively, the children can act as joint debtors and thus reduce banking pressure. Another option is a real estate pension, in which the loan is flexibly adjusted to the loan value of the property.
Are you spending more than a third of your income on your mortgage?
A mortgage loan that is too high is the main reason for a lack of affordability in old age. It is important to negotiate a good contract from the outset. Mortgage holders can consider various investment options to ensure their mortgage remains affordable as they age.
More on the subject:
FinanceMortgage
2024-01-09 10:47:56
#Finances #mortgage #remain #affordable #older
