The act of applying for a mortgage is not only common among young people looking for a first home, but also extends to older ages, either as a second home or as a potential investment. The question is, if a mortgage loan is needed, can it be requested at any age or is there some kind of legal or unofficial limit?
To do this, you have to start the analysis from the beginning. The banks carefully analyze any type of detail when a person requests financing. As is well known, this has to do with the aspects related to having the approval of the credit: solvency, payment capacity, volume of debts and a long etcetera.
Within these criteria in which financial entities are set, there is, indeed, age. It is something very important and that the bank takes into account, since it influences the term and can also be extended beyond retirement. In addition, it is a time when it is easy for income to be reduced, according to Ricardo Gulias, CEO of Rn tusolucionhipotecaria.com
The years act as a limit to the duration of the mortgage, which will end up affecting the amount that can be requested for financing with the ability to borrow.
In other words, it can be more understandable: there is no maximum age for the mortgage to be granted, but there is one in which the entity will want the loan to have been paid off. That age limit depends on each financial institution, but it usually moves between 70 and 75 years, with some exceptions up to 80.
Taking this reference into account, what would be the maximum average age to be able to apply for a mortgage without having any complications? Well, more or less the threshold of 65 years could be the maximum age at which to request and obtain a mortgage loan, although it depends on each bank.
You have to know that age is just one of the parameters that financial institutions take into account when studying each mortgage request. Hay other elements that are taken into account, such as income and how stable it is, how much money is saved or the value of the house itself what you want to buy.
If all these elements are positive, you can get a mortgage regardless of age, but if they are not, being young will not help to obtain financing for a home either.
For example, with 50 years you can get a mortgage without a doubt, as long as the rest of the requirements are met. What is limited from that age is the duration of the loan.
It is assumed that if the mortgage is requested with 50 years and that the entity establishes 75 years as the maximum age at which the loan must be completed. In that case, you can only apply for a 25-year mortgage.
And if a person is retired, can they get a mortgage? Well the answer is yes. Having retired is not an impediment to signing a mortgage. In fact, one of the advantages is that the income will be much more stable than with a salary. On the contrary, the disadvantage is that the mortgage that can be accessed will have a limited duration.
Besides, the age does not have to influence the financing percentage, although it can be a handicap. The reason is that you will have fewer years to pay and that can make the fee high. It must be stressed that no All financial institutions offer mortgages for 100% of the homeso consulting with a mortgage expert is essential to find the right mortgage and thus avoid future problems, says Ricardo Gulias.
