If it is a credit repurchase, there is still no regulatory age limit. The determination of the maximum age is a decision of the personal jurisdiction of the bank which studies the file of the senior customer. Of course, a theoretical cut-off age is informed to the financing organizations, but it all depends on the applicant’s personal situation. In this bill, it is important to recall the definition and operation of credit redemption. It is also important to talk about the age limit for a credit repurchase, then about the guarantees that borrowers can present during a credit repurchase, and finally about the criteria for defining the age limit for a credit repurchase.
A short reminder of the definition and operation of a loan repurchase agreement
For the borrower, credit repurchase is the best way to achieve his or her goals. Indeed, it is the solution if he wants to lighten his monthly charges, obtain additional cash flow, or to reduce his debt ratio. In fact, buying back credit is the shortest way to reduce monthly payments and to have a single, easy-to-manage credit. As a matter of principle, borrowers who want to safely carry out their credit repurchase make comparisons and simulations of this banking operation to find the most advantageous about their profiles
Credit consolidation, credit repurchase, several are the terms that can be used to talk about this banking operation involving several credits. This operation concerns both consumer loans and real estate loans. In certain cases, the borrower can group the two types of credits in the same loan.
In practice, it is advisable to reschedule the repayments to adapt them to the prevailing situation. It should not be forgotten that credit repurchase is also the means to free up a remainder to live on and at the same time, a means to finance a new project, either to improve the income level or to purchase goods or carry out work.
Despite the advantages generated by the credit repurchase, namely the adaptation of the maturity amount, the reduction of the interest rate, the simplification of the budget management, the financing of a new project – the duration of the new credit is lengthened and fees are payable. The borrower must be able to detect the pitfalls in buying back credit.
Despite the possible financial difficulties that could push the borrower to buy back his credits, he must be vigilant as to the right moment to carry out the operation.
What about the age limit for a real estate credit repurchase?
Everybody agrees that the conditions are different according to age, during a credit buyback. It is important, afterward, to discover the variation of offers and conditions for the repurchase of real estate credit according to the age of the borrower and also his age at the end of the repayment period
For a real estate credit, just like a repurchase of real estate credit, theoretically, there is no age limit to carry it out. A customer can borrow to realize a real estate purchase, he can ask for a credit repurchase at 20, 30, or even 80 years old. No law prohibits a financing organization to lend to a client based on his age, as long as the client is of legal age. However, it should be noted that for each borrower profile, there may be a complication necessarily related to age and may result in the refusal of a request to buy back real estate credit. Each period of the borrower’s life corresponds to situations that the financing organization does not fail to know and to study before giving up a credit repurchase financing agreement.
As an illustration, young people can have a complication of access to credit because of :
Lack of personal contribution,
the lack of fixed income,
the lack of sufficient guarantees.
Older people have the advantage of being able to improve their situation over time, and funding agencies have no shortage of finding out which applicants for credit repurchase have been able to retain real purchasing power, an unfailing repayment power, whatever their retirement position.
In any case, being over fifty, it becomes more and more difficult to make people buy back home loans, especially over very long repayment periods. However, with a good file and a constant guarantee, at any age, it is possible to carry out the repurchase of credit.
For an elderly person, pledging is possible if he or she owns real estate. Then, he can still buy another one, using the old home as collateral for the credit purchase. There is a risk to be taken because a default in repayment would allow the bank to seize the real estate pledged as collateral.
Indeed, a personal pledge or otherwise a mortgage guarantee allows the bank to be more flexible regarding the age of the borrower. Of course, the bank does not neglect the maximum age for a credit repurchase, but it insists especially on the guarantees put forward by the senior borrower. It should be noted that senior homeowners are more likely than senior tenants to have their credit repurchase files accepted. A property is a solid guarantee for a lending organization. In any case, the theoretical maximum age is 95 years for a senior homeowner who requests a repurchase of a real estate loan. For a consumer credit repurchase, the theoretical maximum age is 84 years old, which is similar for a senior tenant applying for a real estate credit repurchase
Other criteria to define the age limit for a credit repurchase
Indeed, the age limit to benefit from a credit repurchase is determined by other criteria and parameters. First of all, the lending organization refers to the income of the person. A comfortable income is a priority criterion for the bank to continue to study a senior borrower’s credit repurchase file, even though the new repayment period is considerably longer.
Second, the lending organization studies the senior borrower’s assets other than real estate. The assets may be purely financial, for example, life insurance. The senior borrower who requests the credit repurchase may also propose the guarantor, i.e. a third party who undertakes to honor the monthly installments in case of default, permanent disability, or death of the senior borrower. In this case, the bank will study in-depth the financial capacity of the guarantor who may have to pay the monthly installments.
Also, the senior borrower who requests a credit repurchase must justify that he or she is still in good health. It should be noted that, as a matter of principle, a more in-depth medical questionnaire is required for the bank to decide whether or not it is favorable to a full repayment at an advanced age.
It should also be noted that the cost of loan insurance can be relatively high for senior citizens. A delegation of insurance is more efficient, and as a result, the loan rate can be reduced and certainly the amount of the credit repurchase, without age no longer playing the most important role.