How many years can you get a mortgage? By the age of forty, there is still a chance to reach maximum maturity

It’s a good idea to take out a mortgage at the age of 40. These applicants can agree to a maturity of up to 30 years and, as a result, pay lower monthly installments. Those who choose a mortgage, for example, in their 50s, should calculate shorter maturities and higher monthly payments. The lightest conditions for obtaining the loan apply to applicants under the age of 36.

Age is a major factor when negotiating a mortgage. Limits for the eligibility of the housing loan. Each bank sets a maximum age for the loan to be repaid. “Individual banks approach the applicant’s age a little differently, so some allow you to repay, say, under 65, and others may allow a few extra years. The ideal time to negotiate a first mortgage is between 28 and 36. At this age entry, you can still choose the longest maturity period, thus reducing the amount of your monthly mortgage payments,” says Veronica Hegrova of fintech startup hyponamír. However, a large group of older applicants are also interested in mortgages. to me survey this year 28 percent of those interested in online mortgages were between the ages of 37 and 44, and another 22 percent fall into the 45 or older category.

More moderate mortgage limits for younger applicants

From April of this year, banks are required to adhere to the newly established index limits for offering mortgages. Applicants under the age of 36 are subject to more lenient credit terms. Those interested in a mortgage must prepare at least 10% of the property value determined by the bank from its own resources (note: the maximum LTV index is 90%). Veronika Hegrova adds: “At the same time, the conditions for the other two indicators must be met. The maximum permissible value of the DTI is currently 9.5 and the calculated debt service index DSTI must not exceed 50%.”

Older applicants are at a disadvantage

Those interested in mortgages over the age of 36 should calculate stricter index limits. If they decide to finance their own home with a mortgage, they must prepare at least 20% of their own savings. The upper limits for DTI and DSTI are 8.5 and 45%. Less time to pay off the mortgage means more loan repayments per month. At current real estate rates and interest rates, individuals and families with above-average incomes will get a mortgage.