Home building: Financing for Pensioners
In old age, the personal requirements of one’s own four walls often change. The children are out of the house and correspondingly less living space is needed. At the same time, the requirements regarding equipment and equipment will change in the medium term. Age-appropriate living can best be realized in a property that fits in with the basic concept. There are different models for retirees to finance the change from one object to the other.
The classic house loan
Of course, there is the possibility to finance the new property via a construction loan. The loan taken out for this purpose is then deducted in monthly installments. Since the sale of the original property ensures a high degree of liquidity, it makes sense in such a case to include the possibility of special repayments in the credit agreement. If the loan for the old property is not yet fully paid off, it should also be calculated exactly in what amount the inclusion of another loan makes sense. For in the case of a sale of the old property, although sufficient funds for the replacement of the old loan are available, but it is then usually a high prepayment penalty .
Mortgage lending as interim financing
If a property is already available, the financing of the new property can also take the form of interim financing. Here, a loan is taken over a period of one or two years. On these no regular monthly installments are paid, but this is repaid at final maturity at once. The advantage of this variant is that the sale of the old property can only take place after the move to the new home. The interim financing loan is then repaid from the later sales proceeds. The corresponding contract is designed in such a way that if the proceeds of the sale are insufficient, the interim loan is converted into a regular construction loan with regard to the remaining amount.
As shown, retirees have different options for financing a new property. Accordingly, there is no patent solution, since the financial and other conditions are stored differently in each case. Therefore, the various options should be accurately calculated in the context of a detailed consultation – as here on tecis – before you decide on a particular variant of the financing of the new house.