Retirees in the field of tension between amortization
If you plan to finance your mortgage over the long term, you can afford to own your own home even with your old age pension. Retirees in the field of tension between amortization, consumption and investment. Pensioners with real estate must consider whether they want to further reduce their mortgage debt – or not. An increase in the mortgage is therefore only conditionally possible due to the current guidelines. Pensions: With these measures, homeowners can continue to ensure the sustainability of their mortgage even with their pension.
Mortgage renewal is made more difficult for pensioners – impending foreclosures
Reason: The mortgage is only 1.5 per cent. The loan ends next year, and Mr M. sets off to his bank to meet the conditions for the mortgage extension of USD 400’000. But the future retiree, who retires in 2017, did not consider the landlord.
According to the calculations of his bank, the mortgage on the pension is no longer affordable, since the retirement income is much lower than the current “income”. The mortgage raises “additional sources of income”, repaying part of the mortgage, or reselling the building. There is talk of a “stricter attitude towards pensioners”.
One of the reasons for this is that the credit guidelines – which were only slightly streamlined as part of the fight against a real estate bubble – are consistently implemented by the banks. The main cause, however, he sees in the difficult for the credit institutions environment. The scope is falling and the mortgage business is becoming unprofitable, he notes.
Mortgage credit of pensioners at any price
Therefore, many banks no longer want to maintain the often low and thus unprofitable mortgage credit of pensioners at any price. The allegation of the credit institutions that they have informed their customers too late about the problem is not accepted. “We get in touch with our customers early on in order to solve any affordability problems after the pension,”.
The earnings situation and affordability after the pension are checked by the bank “usually from the age of 50 of the borrower”. Possible measures such as higher depreciation are discussed and initiated together with the client. Even younger borrowers, he adds, are included in the calculation if they are barely affordable.
Mortgage debtors to inquire at the age of 55 at the house bank
Other remarks makes employee of Wenzel due to its front contacts. “In these” counseling sessions “, we focus primarily on the sale of provision products such as the 3rd pillar.” To protect against unpleasant surprises, he advises mortgage debtors to inquire at the age of 55 at the house bank, whether the house after the pension is still acceptable.
On the other hand, it is very important to take into account the changed living conditions. In particular, the head of the regulator recommends that the mortgage not only to two-thirds, but to settle 50 percent.