The older you are, the harder it is for you to get a home loan – even if your finances are good. Mortgages for pensioners and generally Danes over the age of 55 are difficult, but not impossible if you are doing really well.
If you’re up for the years, getting a mortgage can be really difficult. In fact, it only gets harder with age, even if your finances are healthy, according to a new study from the Consumer Council Think, which was done in collaboration with the Danish Real Estate Association.
The banks have tightened the requirements
In recent years, banks and mortgage banks have tightened the requirements for borrowers, and this is particularly affecting the older generation. When the children have moved away from home and the housing needs change, it is very natural to look for less space and easier maintenance. But this is no longer the case, a new study shows.
9 out of 10 real estate agents find that pensioners are rejected by the bank to take out a mortgage, even if their finances are good.
“It is an unfair treatment of older consumers. There should be fair and equal access to housing finance for consumers who are creditworthy, ”says Anja Philip, chair of the Consumer Council Think.
But it is a big problem that it becomes harder and harder to take out a home loan the older you get, because you risk tying the elderly to an overly large and demanding home that does not meet their new needs.
The discrimination begins earlier than previously thought
The survey among real estate agents shows that the discrimination already begins when the borrower reaches fifty.
This is because, according to the banks themselves, they have been required to credit much harder and more carefully after the financial crisis.
At the Consumer Council Think, however, they believe that the banks interpret the new rules for the nuanced when it comes to the elderly.
“It may not be true that, as a 50-year-old, perhaps before the children have moved away from home, they have to make housing plans for themselves as a 70-year-old,” says Anja Philip.
A good piece of advice for the elderly
It can be a big problem that, as an elderly person – and even as a 50-year-old – one has to think far in the future, and even with a good economy, cannot buy his last dream home.
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