Seniors today represent a fast-growing market in France. Nevertheless, the financing needs of seniors are also growing. Read more
Seniors today represent a fast-growing market in France. One in two consumers is senior and the dynamics of their purchasing power, amounting to 150 billion euros, is constantly growing.
Nevertheless, seniors’ financing needs are also progressing on the issues of property acquisition, consumption, financing of an emergency, retirement, etc.
More and more recourse to retired credit
Between 1995 and 2012, the proportion of households aged 65 to over who took out a credit increased from 12.6% to 24.9%. This figure of seniors holding a credit conceals a significant use of consumption credits.
The proportion of households with 55-64 consumer credit holders grew by 11% between 1990 and 2007. The same is true for seniors over 65 years of age. The proportion of credit holders in this category rose by 14% in the same period.
Seniors (over 50) represent more than a third of the French population. As life expectancy grows, seniors live longer in good health. They are even more active and their need for financing is exploding.
Which loan organizations are retired?
The retired loan is:
With the banks
The current period of low rates and falling prices in real estate is favorable to a real estate acquisition. Even if seniors face the obstacle of insurance whose requirements rise with age, they can access the loan up to 70 years . Beyond that, banks are reluctant to take risks, even if the health of the borrower is good. What will persuade the banker is the repayment period, the loan amount and the age of the borrower.
The insurances are more demanding in terms of guaranteed in the case of a reprocessed loan. By law, you can play on the competition between the insurer of the bank and others of your choice. The counterparties can be life insurance, title property, etc. You need insurance only in the case of a real estate acquisition.
With a pension fund
You can also benefit, for a real estate acquisition (principal residence, second home …), a loan of the pension funds of an amount that does not generally exceed 15000 euros. The first condition is to have contributed between 1 and 5 years depending on the fund. If you apply for CNRACL’s social loans, you will need a good financial reputation. The rates charged (from 0% to 0.75%) indexed to the resources of the borrower are very competitive .
In case of refusal of insurance
The case of refusal of insurance concerns only the mortgage. The refusal can be motivated by a serious health problem. This is where the AERAS agreement, available from insurers, comes in, which will cover the additional risk with an insurer who is the only one to decide as a last resort. The cost of this coverage is important, but it’s best not to hide your health issues from insurance.
In case of persistent refusal, call an insurance broker to help you find a favorable insurer.
To negotiate your loan
At the moment when the rate rise is projected in the short-medium term, it is better to lend at a fixed rate . The variable rate in this context is more risky. But, if you still think you have a variable rate pension, think of a capped rate (capped rate) and you can always anticipate the possibility of switching to a fixed rate if this is not very expensive. Negotiate degressive monthly payments that are larger at the beginning and lower as repayment progresses
Know that using the service of an insurance broker can cost you between 0.4 and 1% of the amount you borrow. All of this allows you to borrow for your projects even with age.