30 is the new 20 and 40 is the new 30. It seems like you are getting younger, even though your birthdays are the same. What about the mortgage? Does your financial institution see you the same way when granting you a loan or is there a maximum age for a mortgage?
How does your age affect the term of your mortgage?
Financial institutions carefully analyze any mortgage application. This means that they take into account many factors before approving the loan.
Age is one of them, although it is not the most relevant. Other aspects that count more are your financial situation, debt capacity, income stability or the value of the property you want to finance.
In reality, your age acts as a limit on the duration of the loan, which will ultimately affect the amount of mortgage you can borrow along with your borrowing capacity.
To help you understand better, there is no maximum age at which you can be granted a mortgage, but there is a maximum age at which the bank will want you to have finished paying off the loan. This age limit depends on each financial institution, but it varies between 70 and 75 years of age.
Until what age can you apply for a mortgage?
With the above figure in mind, what would be the maximum age to apply for a mortgage?
Age 65 could be close to the maximum age at which to request and obtain a mortgage, although this will always depend on each entity.
What you should know in this regard is that age is only one of the parameters that financial institutions take into account when studying each mortgage request. There are other elements that are taken into account, such as your income and how stable it is, how much money you have saved or the value of the property you want to buy.
If all of these factors are positive, you can get a mortgage regardless of your age, but if they are not, being young will not help you obtain financing for your home.
Frequently asked questions about the maximum age of a mortgage
Is there a law that sets the maximum age for a mortgage?
No, the law does not set an upper age limit for signing a mortgage. In theory, you can do so at any time in your life.
Will I be granted a mortgage when I am 50?
Yes, at 50 you can get a mortgage without a doubt, as long as you meet the rest of the requirements . What is limited from that age is the duration of the loan.
Let's say you apply for a mortgage for 50 years and the lender sets the maximum age at which you must have finished paying off the loan at 75. In that case, you can only apply for a 25-year mortgage .
Until what age can I pay the mortgage?
The specific age may vary depending on the financial institution, although the most common cut-off age is between 70 and 75 years.
Can I get a mortgage after retirement?
Yes, being retired is not an impediment to signing a mortgage. In fact, one of the advantages is that your income will be much more stable than with your salary.
On the other hand, the disadvantage is that the mortgage you can access will have a limited duration.
Can I get 100% financing for my home when I'm 45?
Age does not necessarily have to influence the percentage of financing, although it can be a handicap. The reason is that you will have fewer years to pay and that can make the instalment high. In addition, not all financial institutions offer mortgages for 100% of the property.
What is the maximum duration of a mortgage?
Again, the length of the mortgage depends on each financial institution. The most common is that the duration of mortgage loans does not exceed 30 years, although this can vary between a fixed-rate mortgage and a variable-rate mortgage . However, as you have already seen, to enjoy these terms, you will have to finish paying before you are 70 or 75 years old.