Lighting a mortgage is essential if you want to buy a home . What many people do not know is that retired people can also access this form of financing that allows them to defer such an important expense as buying or renovating a property . Compared to normal loans of this type, pensioner loans have limitations due, more than anything else, to the age of the applicant.
In this short guide we will try to analyze the merits and defects of this type of product and we will go to select the best proposals of the moment among those offered by the major banks in Italy. If you are looking for a home loan for retired you just have to read this page to the end so as to discover all the news in the industry.
How pensioners work
Funding for the purchase or renovation of a home provided to retirees does not differ, much from those granted to any other person. As we have said, the only substantial difference is that linked to age constraints that could limit, in part, some requests for funding. Usually, in fact, banks tend not to provide mortgages to those over 80 years old at the end of the loan .
There is also to say, however, that this limit can be circumvented by signing a life insurance policy that protects the bank, in case of death before the conclusion of repayment of the loan. That said let’s see in detail how these products work by analyzing both those for the purchase of a property, both those for restructuring.
Retired mortgages buying home
When it is necessary to finance the purchase of a property, the bank tends to apply precise rules. First of all, the capital that can be financed does not generally exceed 80% of the value of the property. This means that on a house of 200 thousand euros (the appraisal of the technician appointed by the credit institution will attest), the bank will grant a maximum loan of 160 thousand euros.
The value of the installment is given by the interest rate (Tan) plus any costs of practical management, costs of investigation, insurance expenses, etc. which constitute the Taeg, ie the effective rate. To determine the tan the bank starts from the official exchange rate, (usually the Euribor) to which a spread is added that varies according to many parameters.
Retirement mortgages for restructuring
As regards restructuring , the same rules that we have already explained for mortgages for purchases are more or less in force. To this must be added, however, that the bank wants to always have the estimate of the restructuring, the eventual project and the provision of capital usually takes place upon invoice presentation of the company in charge of the works.
Mortgages for restructuring are very common among pensioners because they allow you to modernize your property (perhaps to make it compatible with the new rules in terms of safety and energy consumption) at completely affordable costs.
In principle this type of financing represents a real opportunity for all those pensioners who are faced with important expenses such as those related to the renovation of the building.
Before moving to analyze what are the best home loans for retirees we want to spend 2 words with regard to any benefits that the sector reserves to those over 65 years of age . For many pensioners above this threshold, in fact, there is the possibility of obtaining subsidized loans.
Some lenders do not charge practical management fees, others apply more advantageous interest rates than usual. To find out what the advantages are and whether there are any discounts available, you can obtain information from INPS or your pension agency.