Non-standard profiles
Borrowing after 60: Removing the real obstacles, from insurance to term
There is no legal age limit for borrowing. After 60, three factors decide: the insurer, pension income and the insured amount.
No text sets a maximum age for borrowing. The limit comes from the insurer: each policy sets a maximum age at the final instalment, which determines the financeable term. Two other points decide: the debt-to-income ratio calculated on estimated pension income if the loan runs past retirement, and the insured amount. When life insurance is inaccessible, the reduced insured amount or the pledge of a life insurance policy remain.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- No text sets a maximum age for borrowing: the limit comes from the end-of-loan age accepted by the insurer, specific to each policy.
- The threshold known from the Lemoine Act does not condition the granting of credit: it only states whether a health questionnaire can be required.
- Questionnaire required: the insurer may accept at the standard rate, apply a surcharge, exclude certain guarantees or refuse.
- Life insurance inaccessible: two paths, reduce the insured amount or pledge a life insurance policy to the lender.
- If the loan runs past retirement, the bank calculates the debt-to-income ratio on estimated pension income, not on current income.
No text sets an age limit for borrowing. After the age of 60, everything depends on three levers to prepare: the maximum age for loan repayment accepted by the insurer, pension income and the share covered. A typical case of profiles that bank grids do not anticipate.
The reverse mortgage is outside my scope: pre-contractual information (FR), who to approach.
Maximum age for a mortgage: it is the insurer who sets it
No legal maximum age. Each insurer sets a maximum age at the final instalment: it determines the financeable term.
Two insurers, two possible terms: put them in competition.
La maturité additionne la période de différé et la période d'amortissement. Elle borne tous les dossiers, quel que soit l'âge de l'emprunteur.
- En vigueur depuis le
- Source
- Décision D-HCSF-2021-7, art. 1er — Légifrance
“60 years old” is not an age limit
This threshold comes from the Lemoine Act: it only states whether a health questionnaire may be requested from you.
C'est une condition de suppression du questionnaire médical, jamais une condition d'octroi du crédit. Aucune banque n'est tenue de refuser au-delà.
- En vigueur depuis le
- Source
- Article L. 113-2-1 du code des assurances — Légifrance
No health questionnaire: two conditions
The final instalment falls before a statutory anniversary, and the insured share of the cumulative outstanding balance is subject to a cap.
The cap is calculated per insured, with ongoing loans added together. See the Lemoine Act and when the questionnaire disappears.
Questionnaire required: three reflexes
The insurer accepts, applies a surcharge, excludes or refuses. In cases of aggravated risk, the AERAS agreement organises several levels of assessment.
- Answer precisely: false declaration.
- A refusal is not a verdict: refusal and AERAS.
- Exclusion and surcharge are negotiated differently: exclusions, guarantees.
Inaccessible life insurance: two paths
Reduce the sum insured to what the insurer accepts, or pledge a life insurance policy or securities in favour of the lender.
First, read the maximum ages and waiting periods: the policy schedule, excess and waiting period.
With a pledge:
- The pledged value is immobilised for the entire duration of the loan.
- Partial insurance is often still required.
- Upon death, the debt falls on the estate: discuss this within the family.
Lowering the sum insured for the most exposed party reduces the premium, but the surviving partner would bear the remainder: the sum insured for couples.
Retirement during the loan: the bank projects your income
Beyond the departure date, the debt-to-income ratio is calculated on the estimated pension. A lower pension reduces borrowing capacity, even if the application is approved today.
Prepare the career statement, the pension estimate, the income that will remain and a simulation before and after retirement. If it is not approved, shorten the term or increase the down payment.
At 62, what term?
The maximum age admitted by the insurer at the final instalment, minus your age. This determines the term and the lending budget.
Seek insurance before the bank, and compare maximum ages rather than premiums. Remains financeable: a high down payment, a purchase backed by a sale, a rental property, a split estate or a joint purchase.
The file to prepare
- The terms of two or three insurers, including the maximum age.
- Health questionnaire and medical documents, from the outset.
- The pension projection, documented.
- The loan guarantee: surety or mortgage.
An insurer’s refusal targets a contract, not your application. Have your project reviewed by telephone or go through the contact page.
Create your file before the preliminary sale agreement, while the term can still be adjusted.
Regroupement de crédits
Un regroupement de crédits dont la part des crédits immobiliers ne dépasse pas 60 % du montant total de l’opération relève du crédit à la consommation (C. consom., art. L. 314-10, L. 314-11 et R. 314-18). Le code impose alors la mention suivante sur sa publicité :
Un crédit vous engage et doit être remboursé. Vérifiez vos capacités de remboursement avant de vous engager
Sources
Read next
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