At Good Finance we have analyzed the ideal age to apply for a mortgage loan with certain guarantees of success and at the best possible interest rate .
The best age to contract a mortgage depends on several factors
linked both to the possibility of granting us a mortgage at a competitive interest rate and that our chances of paying the debt without problems are optimal:
The financial situation of the applicant. A middle-aged person usually has a better working and financial situation than a young person.
The monthly income in terms of the maximum installment you can afford (and age marks the maximum term of the mortgage).
The family situation
Which influences income (if the couple also works) and costs (more children plus expenses, for example).
The ideal age will be the one that maximizes the positive and minimizes the negative in terms of solvency for the financial institution, which ultimately wants to be paid back plus the corresponding interest.
Therefore, in principle and based on purely statistical criteria and without entering into specific situations that alter this generalization, the ideal age could be between 30 and 45 years . Among the arguments that support this statement we could mention:
In this age group there is a sufficient working life to analyze the professional career of the applicant (and to be able to estimate their future work). The youngest still have much to prove in terms of their career in the labor market.
Labor contracts tend to be more stable in this age group (undefined, consolidated businessmen, officials) and higher incomes .
Although they have more expenses (children and others), if there are relationships, they are usually more durable (and for the bank it is important that if you grant a mortgage to a marriage, they do not separate soon and there are problems to pay the mortgage) and the most stable family income .
Banks calculate the mortgage term as follows
Age + maximum term cannot exceed 70 or 75 years . A person of 40 years, for example, can request a mortgage of a maximum of 30 or 35 years. A person of 50 can only qualify for a mortgage of 20 or 25 (whose quota is higher).
Although it is assumed that a person over 45 years of age will have more properties (and can provide them as a double guarantee), it is not a very good sign that you have to borrow at this age, since it is assumed that you have already had time before buying your living place.
Young people are the main victims of the crisis , both at the level of unemployment and access to housing. When financial institutions suffer from lack of liquidity and select their clients much more, those under 30 see their prospects of living in their own homes fade. One of the many problems that our economy causes the least guilty of their current situation.