A senior can quite claim a mortgage without having any personal contribution, it is above all the age date of end of loan which will allow to know if the real estate project is feasible.
Senior: mortgage without contribution
It should not be believed that only young borrowers are without contribution, many seniors find themselves in this situation following more or less voluntary events (separation, anticipation of retirement, personal project). Without contribution, it is still possible to borrow because the borrowing capacity corresponds to 33% of the income of the senior borrower, so it is therefore possible without the presence of loans in progress to be able to bear a charge corresponding to one third of the income. With one or more credits in progress, you will need to subtract the amount of the monthly payments to be able to determine the remaining amount that can be used to repay a mortgage. In terms of rate, the absence of contribution is not a prejudice, it is quite possible to obtain a very attractive rate, it is especially the insurance which plays for the senior profiles.
Anticipate retirement in mortgage
If some seniors are already retired, others will operate their mortgage application while still active and it is important to take into account the date of retirement, even if some changes may still take place. with laws on retirement age. Thus, banks can adapt and take this element into account in their mortgage offers, simply because in 90% of retirements, there is a drop in income. We must therefore take into account this drop in income to adjust the monthly payment before and after retirement. The banks thus offer a tiered loan, the first years are repaid with a monthly payment capped according to the request of the borrower (often borrowers over 50 years), then it is reduced at the time of retirement. This adjustment along the way allows you to keep your finances in hand and not to create an imbalance, while continuing to repay your mortgage.
Senior, retired or active: borrow without contribution
The obligatory step for households looking for a mortgage loan offer without having any contribution is simply the simulation of mortgage. The Internet makes it possible to simplify procedures and in some cases to benefit from the best offers on the market, in particular in terms of rates for mortgage loans without contribution. Senior profiles are often appreciated by banks and credit institutions since with retirement already in place or to come, the sustainability of income is a factor facilitating the bank loan, a guarantee that a young borrower will not be able to guarantee 100%. During the simulation, it is also important to learn about borrower insurance, it must cover the senior borrower as a whole, the use of an insurance broker can be an effective alternative. Credit insurance can represent a significant part of the cost of financing, especially when the need for care increases with age. It is therefore necessary to choose a good cover but with an attractive price, this is measured with the TAEA (effective annual rate of insurance). Several quotes from insurance companies may prove useful.