Borrowers aged 55+ are considered not the most popular category in Russian banks. If they take out a mortgage, it is usually for investment purposes – to buy an apartment, then sell it at an increased price, repay the loan and stay in the black. Who has a better chance of getting a loan, and up to what age it can be applied for, explains Realtor-practitioner Natalya Pereskokova.
— Each bank sets maximum and minimum age limits independently. But on average it is from 21 to 65 years. Although there are banks that issue loans to people up to 75 years of age and there are even some mortgage programs for pensioners. The maximum age of the borrower at the time of closing the mortgage cannot exceed 75 years.
The biggest inconvenience for a pensioner is, of course, expensive life and health insurance. But you have to agree to this in order not to be refused a loan. The second difficulty is that the term of the approved mortgage is usually 7-10 years or even 5. Accordingly, the size of monthly payments increases significantly. Let’s add to this that interest rates on secondary housing have increased significantly, as have prices for it, as well as the inability to take advantage of subsidized mortgage programs for new buildings. As a result, the payment amount will be such that not every pensioner can afford.
But there are still chances for a mortgage loan for people of “silver age”, so you shouldn’t give up, you need to look for your mortgage broker and analyze the banks’ conditions. The likelihood of getting a loan increases if:
- the borrower has a life and health insurance contract;
- the borrower has a decent “white” income;
- the pensioner continues to work;
- the pensioner has guarantors with confirmed income.
In my practice, the oldest mortgage borrower was a very active man, a pensioner, an entrepreneur, who was 65 years old at the time of consideration of the application. A loan to buy an apartment was approved for 10 years.
This news article has been translated from the original language to English by WorldsNewsNow.com.
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