So you borrow money as a pensioner

An application to borrow money is always assessed based on the applicant’s ability to pay. For the elderly, this can be a problem, as their pension is usually lower than their income during the working years. Also, for other reasons, some banks may have restrictions on loans to seniors .

Therefore, the best way to borrow money as a pensioner is to compare loan offers . As a rule, there are credit institutions that can consider lending with a higher risk at a slightly higher interest rate.

Mortgages for pensioners

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Basically the same conditions apply to everyone else. You can borrow a maximum of 85% of the value of the new home. If the income is low in relation to the loan-to-value ratio, the new repayment requirements mean that you may have to pay up to 3% of the loan amount per year.

Usually, pensioners’ mortgages are about switching to a smaller home. If the old home is then heavily mortgaged, it may be a problem to get a loan for the new one, even if it is cheaper in real terms. If the exchange goes out financially, or of course, it is easier.

When changing a home, one must also keep in mind that tax is to be paid on any profits from the sale of the old one. Although it may be possible to postpone the tax, this is still an expense that must be included in the calculation.

Dorothy’s advisors will help you find a solution that fits your needs and financial conditions. How much you can borrow for a home you calculate with our mortgage calculator.

Private loans for pensioners

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For private loans, the same basic requirements apply to pensioners as to all others. In terms of income, the requirement for private loans to seniors (senior loans) is also at least USD 110,000 per year. However, you can expect a shorter payback period than if you are in the middle of your professional career.

A rule of thumb is usually not to apply for a loan that is larger than the annual income.

Again, it is best to compare different loan offers and in conjunction with that talk with a loan advisor. If you meet the income requirement, you can always find a solution.

Save money by collecting loans

Save money by collecting loans

Retirees who want to improve their finances can easily do this by collecting their loans . This way you can reduce the monthly cost while getting a better overview.

Read more on our page about how much you can save on collecting, for example, home loans, car loans, credit cards and consumer loans for a new loan. It can be about a thousand dollars a month. Which is a significant amount, especially when you get older and don’t have as much money to move around.