At what age can you take out a mortgage and until what age do you have to pay it off?

One of the main criteria for obtaining a mortgage loan is age restrictions. They vary differently from bank to bank. Let's look at how many years and up to what age Russian banks give a mortgage for an apartment, what requirements, in addition to age, are imposed on the borrower, and how to increase the chances of getting a mortgage approved if they are denied because of age.

Bank age requirements for mortgages

Age restrictions for borrowers are quite logical and are confirmed by certain facts. Thus, the onset of material and financial responsibility by law begins at the age of 18, which is why adulthood is considered the minimum age for issuing a loan. However, despite the law, not all banks provide mortgages to citizens over 18 years of age. This is based on the fact that young people do not yet have a regular income and work, so they are unlikely to be able to pay off their mortgage on time.

Banks also always pay attention to the likelihood of being called up for service in the Armed Forces of the Russian Federation. The marital status of the young man and his income are studied. All this together is considered as possible risks of not repaying the mortgage loan.

As for the maximum age, everything here is also logical and understandable. All other things being equal, the age for making the last loan payment must coincide with the borrower’s retirement date. Banks believe that after retirement, the financial situation may deteriorate sharply, and the borrower will not be able to fully repay the debt.

Thus, the inclusion of age restrictions in the terms of mortgage lending is quite logical, since the degree of solvency and responsibility of the client greatly depends on age.

Loan terms

The parties independently agree on the duration of the agreement, but it is important to consider that the longer the client takes to repay the loan, the greater the final overpayment amount will be. At the same time, the bank does not sanction the client’s desire to repay the debt ahead of schedule.

How many years a mortgage on an apartment is granted is decided solely by the parties to the agreement based on the financial capabilities of the client.

Ideal borrower age for a bank

It is obvious that young clients rarely have good income and in most cases cannot service the loan in a timely manner. This is why they are most often denied a mortgage. The same is true for people of the older generation. There is always a risk for them to lose their regular income due to retirement, illness or any other reason. Banks are afraid to take risks and lose their money. That is why they form their own opinion about the ideal age of the borrower.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

According to statistics, the most punctual and responsible borrowers are middle-aged women (30-45 years old), with a family, higher education and a positive credit history. Even a high income is not such an important factor, unlike a good credit history and permanent residence of the client in the region of the lending bank. Product Manager of Home Credit Bank Anna Gapeenko confirms this fact and says that women approach the issue of mortgage insurance more responsibly, unlike men.

Men are more responsible between the ages of 35 and 40. Less reliable borrowers are men aged 20-29 who do not have a family. They often spend their money irrationally, so they are late in repaying the loan, and sometimes they don’t pay at all.

A person who does not have a job or is employed informally has much less chance than a person with a permanent job and a fixed income.

It turns out that the most ideal borrower for banks is a middle-aged person with a permanent job, an average income, a higher education and a family. Such people clearly understand that in case of delays and delays, next time the bank will simply refuse to issue a loan when it is really needed.

Basic recommendations

Despite meeting the stated requirements, it is important for the borrower to understand that his chances will increase if he creates a good impression of himself among the bank’s specialists. A simple human factor is at work. Therefore, it is advisable to come to the bank neat and well-groomed. In addition, it is important to study, at least approximately, the terms of the mortgage in advance. Additional knowledge will be an advantage at any stage of registration.

You should also prepare for the fact that you will have to deposit the agreed amounts into the bank account every month. In case of delay, the borrower is charged fines and penalties.

Thus, before signing a mortgage agreement, you need to weigh the pros and cons and adequately assess your own financial capabilities.

Minimum and maximum ages for a mortgage

Each bank has different age requirements. In addition to the standard mortgage agreement, banks offer loyalty programs, thanks to which you can get a mortgage on more favorable terms. Each of these programs carries certain conditions. Let's look at the popular mortgage programs of banks and their differences in age restrictions.

For housing

In accordance with the laws of the Russian Federation, material and financial responsibility arises after 18 years of age. That is why the answer to the question about the minimum age for a home mortgage is clear - you can take it from 18 years old.

Getting a mortgage at 18 without co-borrowers is almost impossible. The optimal age for approval for a home mortgage is 21 years old. The basis for this is the need to obtain a minimum work experience of 1 year. It is not possible to earn such experience at 18 years old, so almost all banks today set a minimum age requirement of 21 years.

The maximum age at the time of mortgage repayment is 75 years. However, only a few banks can take out a mortgage on such terms, and in most cases the age restrictions are set between 21 and 65 years. This is how banks minimize their risks.

For a commercial mortgage

A commercial or business mortgage is a profitable tool for supporting small and medium-sized businesses. Entrepreneurs, purchasing real estate with a mortgage, place service offices and warehouses on its area.

Important:

The basic conditions and principles of organizing a commercial mortgage are enshrined in Federal Law No. 102-FZ “On Mortgage (Pledge of Real Estate)” dated July 16, 1998, as well as in several articles of the Civil Code of the Russian Federation.

This type of lending is most focused on legal entities, however, many banks also provide mortgage loans to ordinary individuals and individual entrepreneurs. Due to the fact that obtaining a commercial mortgage is aimed at profit, banks put forward strict requirements not only for collecting the necessary information and documents, but also for age.

Thus, the borrower must be a resident of the Russian Federation between the ages of 21 and 65, and have a positive credit history. In this case, the involvement of a guarantor is mandatory. The amount of issued loans should not exceed 1 million rubles. Compliance with these conditions must be documented.

Seniority

One of the prerequisites for obtaining a loan to purchase an apartment is the applicant’s employment. The evidence is:

• a page-by-page copy of the work book, which is certified by the employer;
• certificate from the place of work.

Bank employees have the following requirements:

• total work experience of more than a year over the last five years;
• the period of work with the last employer is more than six months.

When considering the issue of issuing a housing loan “on two documents,” information about the length of service does not need to be provided.

Why are banks increasing the age limit for mortgages?

In recent years, Russian banks have been raising the upper age limit for borrowers. If earlier this age was 55-60 years, now at the time of repayment of the loan the client may be 75 years old.

Expert opinion

Alexander Nikolaevich Grigoriev

Mortgage expert with 10 years of experience. He is the head of the mortgage department in a large bank, with more than 500 successfully approved mortgage loans.

After raising the age limit for housing loans, the down payment condition became mandatory. It serves as proof that the borrower is wealthy and reliable from the point of view of banks. People of older generations, as a rule, have their own savings, which they can invest as a down payment. From this, the banks themselves receive much greater profits than before, and older people have the opportunity to buy the desired property.

As Rossiyskaya Gazeta writes, raising the maximum age limit for issuing a mortgage is increasingly associated with raising the retirement age. For men this age was 65 years, for women - 60.

Ways to increase your chances of getting a mortgage if the bank refuses due to age

Very often, the reason for refusal of a mortgage is the age of the borrower. There are several surefire ways to increase your chances of receiving a targeted loan.

Let's look at them:

1. Contact another bank. If one bank refuses, this does not mean that they won’t give it to another. It is best to find out in advance about the requirements of each bank so as not to waste your time once again on a bank that will refuse.
2. Find a good co-borrower. Young and elderly people are often denied a loan, but after they bring their relatives as co-borrowers, the bank changes its mind and provides a mortgage.
3. Take out a mortgage for a smaller amount or choose another home that costs less . Choose real estate with an adequate price. Paying a loan for a 1 or 2-room apartment is much easier than for multi-room mansions.
4. Registration of a mortgage for another person. Contact your relatives with a request to apply for a loan for them. This will help speed up the home buying process.
5. Contact a mortgage broker. Mortgage brokers are intermediaries between the borrower and the bank, providing consulting services and legal support in matters of mortgage lending.

Income

We are talking not only about the client’s earnings, but also about receiving additional profit (rent, pension). This information affects the size of the mortgage.

Thus, in Sberbank, an individual with a monthly income of 10 thousand rubles will be offered a maximum loan of 420 thousand rubles for thirty years to purchase an apartment.

Does the applicant have unofficial income that is not documented? You can take advantage of a loan to purchase a home, which is issued upon provision of two documents:

• internal passport of the Russian Federation;
• SNILS.

Borrower age requirements in 5 large banks

As already mentioned, the conditions for providing a mortgage loan differ from bank to bank. For clarity, let’s look at 5 large banks of the Russian Federation and their requirements for borrowers.

Sberbank

The requirements of the leader of the Russian financial sector can be called standard. The minimum age to obtain a mortgage is 21 years. The maximum age at the time of loan closure should not exceed 75 years. That is, at 60 years old you will not be able to take out a loan for 20 years. In addition to age restrictions, Sberbank requires the borrower to have official employment with a total work experience of 1 year, a confirmed stable income and a clear credit history.

VTB

You can get a mortgage from VTB Bank at the age of 21, and you must repay the debt until you are 65 years old. The maximum loan period is 30 years.

Gazprombank

Gazprombank's requirements for borrowers are slightly different. The minimum age for taking out a mortgage is 20, and the maximum at the date of payment is 65 years.

Rosselkhozbank

The minimum age for issuing a mortgage at Rosselkhozbank is 21 years. The maximum varies depending on conditions. So, for example, the age limit will be 65 years at the time of paying off the mortgage without a co-borrower, and 75 years - if there is a co-borrower specified in the agreement.

Alfa Bank

At Alfa Bank, the age limits are 23 years minimum and 64 years maximum on the date of the last payment.

Comparative table of 23 banks

Age restrictions and other conditions of the most popular Russian banks are included in a special table. Interest rates are relevant for secondary real estate, but age restrictions are the same for all mortgage programs of banks. You can calculate your mortgage using a convenient mortgage calculator, which will show the amount of the monthly mortgage payment as well as the amount of the total overpayment.

Documentation

The mortgage approval procedure takes place in 2 stages, at each of which the necessary documents are provided. The first stage is approval of the borrower's candidacy. Here the age, citizenship and registration of the potential borrower, the client’s payment discipline are studied, the level of his solvency and the possibility of providing a down payment are analyzed.

The required package of documents consists of:

• questionnaires;
• passports;
• TIN and SNILS;
• military ID;
• income documents;
• work book and employment contract;
• documents characterizing the client’s marital status (birth certificates of children, marriage or divorce, death of a spouse, etc.);
• information about the amount of the first payment (certificate of maternity capital or bank account statement).

The second stage of consideration is related to the purchased premises. At this stage the client will be required to:

• report of an independent appraiser for the purchased housing;
• seller's passport;
• documents confirming ownership (purchase and sale agreement, exchange, donation, privatization or certificate of inheritance, as well as certificate of ownership);
• extract from the Unified State Register;
• cadastral and technical passports for the house (apartment);
• consent of the second spouse to transfer real estate as collateral (if he is not a co-borrower).
• Before signing a loan agreement, the borrower will be required to provide an insurance policy for the purchased premises.

Find out in detail about what documents are needed for a mortgage in this article.