When the children are out of the house, many people find their own home too big. Then they might want a smaller, age-appropriate home. Or they want to move from the country to a city apartment because the infrastructure is better there. Older builders have good prospects of getting financing – provided the framework conditions are right.
“Financing for the 50+ generation is actually no different from that for young builders,” says Udo Zimmermann, a specialist in construction financing at the finance broker Dr. Small. The financial institutions checked the financial situation of the applicant according to certain criteria such as income, equity and collateral. “If, according to your assessment, he is able to pay the monthly installment, he will usually get the loan,” says Zimmermann.
According to the mortgage broker Interhyp, the following factors are decisive for a solid purchase decision in every phase of life: the realistic analysis of the financial possibilities, a look at the personal life situation and the cool consideration of whether the property actually offers what is sought in terms of location, condition and layout .
Loans should be paid off by 75
Age only plays a minor role. “However, it cannot be completely neglected,” says Roland Stecher, financial adviser at the consumer center in Bremen.
According to the EU residential real estate credit directive, banks ensure that the loans are repaid within the statistical life expectancy. They often start this at the age of 75. “But there are certainly cases where they grant loans with terms of 15 to 20 years, even if the borrower is then over 80,” says Stecher.
Udo Zimmermann also observes that banks do not always assume that the customer will repay his loan in full during his lifetime. “With a real estate loan, you always have the property as collateral that you can use in an emergency. It’s different than consumer credit.«
Best Agers often have good credit ratings
This makes it clear that the so-called best agers, i.e. people aged 50 and over, are definitely an attractive target group for banks. “No wonder,” says Roland Stecher. “They often have a lot of equity from savings or life insurance. Or they sell their old property.« The following applies: the higher the customer’s creditworthiness, the better the conditions they get.
If you want to tackle real estate financing at an advanced age, it is best to start with your house bank. »In general, financial institutions finance up to 85 percent of the value of the property. The customer would therefore have to bring 15 percent plus additional costs as equity capital,” says Udo Zimmermann. It’s good when customers are liquid.
Comparing offers is worthwhile
Interested parties should never be satisfied with the first offer from their house bank, but rather inquire at several financial institutions. There are big differences in the offers, a comparison can save a lot of money. Brokers for real estate loans promise a good overview of the market because they work with many banks – including those that are particularly geared towards the older target group.
Above all, customers with a solid income and equity have a good negotiating position with banks. They should take advantage of this and agree on tailor-made conditions.
© dpa-infocom, dpa:220504-99-156571/2
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