For a credit buy-back, no statutory age limit is established. Each bank freely defines the maximum age at which a borrower can claim this financing transaction. However, banks and credit organizations agree on a theoretical age limit at which a senior borrower can repay his loan repurchase, an age which depends on the personal situation of the applicants.
Credit repurchase transaction: an increasing age limit
In view of the lengthening of the lifespan, banks and finance companies tend to set the loan repayment limit higher and higher.
Note: some figures on life expectancy in the country
Between 1900 and 2000, the life expectancy of the person increased from 48 to 79 years! In 2017, a woman lived up to 85.3 years and a man up to 79.5 years on average. A leaping age, which is explained in particular by the social and health progress of the last decade.
Another criterion seems to be taken into account during a loan buyback operation: the retirement age. It is later today. Indeed, given the economic situation, seniors do not hesitate to work longer in order to benefit from a premium, and therefore, to increase the amount of their income once they retire: a situation that leans in the favor of the borrower wishing to buy back a loan since his borrowing capacity is thereby optimized.
Maximum age for a repurchase of credit: the theoretical figures revealed!
The age limit for repaying a loan repurchase will differ depending on the type of repurchase (consumption or real estate). For a consumer credit redemption, the final maturity date will normally occur before the 84th anniversary of the borrower. But on the contract, the bank will generally increase the repayment duration by 6 months from this date. For a home loan repurchase, the maximum age for full repayment is pushed back by 6 years, or 90 years.
Senior credit repurchase: the owner of a privileged property
In order to define the maximum age for a loan buy-back, in addition to the retirement age, the bank will also look at the guarantees advanced by the senior borrower. Logically, senior owners of real estate will be more likely to have their credit repurchase application accepted than those who are tenants. This can be explained very simply … The property in question is mortgageable. This therefore constitutes a solid guarantee for the bank. Suddenly, a senior owner can repay his loan at an older age: 95 years. It is a priori the theoretical maximum age.
The borrower tenant will for his part proceed to repay his credit repurchase at the maximum at the age of 84 years, or more or less like for a consumer credit.
Seniors and repurchase of credit: still other criteria define the maximum age
The maximum age for a repurchase of credit is conditioned by other parameters. Starting with the income of seniors! It is obvious that the more comfortable a senior borrower will be, the easier it will be for the bank to accept his file, even in the event of a greatly extended repayment period. Next comes heritage. Having real estate assets is, as we have seen, a very good point for the borrower. But this heritage can also be purely financial (life insurance, for example). In terms of collateral, there is also the surety, that is to say a person who undertakes to reimburse the monthly payments of the borrower in the event of default on the part of the latter. Of course, the surety must have sufficient income to be able to support these monthly payments. The bank will not compromise on this point!
All this, without forgetting the state of health of the borrower. It is not uncommon that after the age of 55, he is subjected to more in-depth examinations and a medical questionnaire, possibly discriminatory. Because it goes without saying that the more a senior will have a fragile health, the less the banks and finance companies will be favorable to a total reimbursement at an advanced age, even to the pure and simple validation of the file. Again, having collateral can help convince the bank!
Credit repurchase for a senior: lower their borrowing rate via the delegation of insurance
For seniors, a loan buy-back transaction can be expensive in insurance. However, like any borrower, a senior can use insurance delegation: an indirect way to reduce their borrowing rate. Concretely, the delegation of insurance consists in subscribing to an insurance other than that proposed by the bank buying back the loans. It is a right offered to the borrower. You might as well take advantage of it if that ultimately reduces the amount of your loan buy-back!
With us, you no longer have to worry about your age for a credit repurchase. Attractive rate allowing a long repayment period, free early repayment whatever the amount of redemption, financial situation studied with a magnifying glass to gauge the risks… everything is thought so that repurchase of credit rhymes with serene financing operation, even at retirement !