Most people would love to own a mortgage at one point in time. This can be during their job days or when they retire. Irrespective of the time owning a mortgage is pleasurable. Therefore, let us find out what happens when you retire and you need a mortgage. Will you qualify? Or it is not possible to own one. Read and find out.

Can a retired person qualify for a mortgage?

You qualify for a mortgage even if you have retired. Well, before you fill out your application form there are important things that you need to understand. Some people might perceive getting a mortgage after retirement difficult decision to make because most retirees have lower income than what they were earning during their working years.

Therefore, start by evaluating your financial strength. Ensure you have enough money that you had saved for your retirement and it can sustain you so that you don’t feel overwhelmed when paying for the mortgage. Besides, if you have additional debts then you should also put under consideration. Offsetting your debt balanced will give you a good credit score. Once you are ready don’t hesitate to apply for a mortgage.

Can over 60s get a mortgage?

There is no maximum age for applying for mortgages, said mortgage broker Heidelberg. Usually, the maximum age for most mortgage lenders is 65 -85 years. Most Lenders will ask you to prove that your income from your pension can finance repayments on your mortgage. This is the easiest way if you have retired. If you have not retired and you are over the 60s you should ask your pension provider to give you a confirmation of your expected retirement income, current pension pot value and expected retirement date.

Alternatively, you can use equity release mortgages to withdraw a share of your home and use it as a monthly income or lump sum money. This can help you to fund your retirement, pay for the unexpected cost or major purchase and pay off your mortgage.

Can you get a loan when you are retired?

You can qualify for a loan when you are retired but you should avoid borrowing money from your retirement plan, pension or individual retirement account. You can qualify for both secured and unsecured loans and here is what Lenders consider before they grant you a loan:

  • Your assets
  • Your income
  • Your age

Therefore, after meeting eligibility criteria you can qualify for the following loans: debt consolidation loans, car loan, equity release mortgages, mortgages, credit cards, and personal loans.

Therefore, retirement doesn’t mean you can’t enjoy life like other people. The most important thing is to plan adequately for your retirement so that you can meet the minimum requirement to be allowed to access some services.