Mortgage from age 57

Mortgage from age 57

For calculating your maximum mortgage, your 57th birthday is a crucial milestone for taking out a mortgage in The Netherlands. Starting at this age, mortgage lenders also take into account your retirement income, in addition to your regular wage income. Not to worry: You often still have excellent mortgage options available to you from age 57.

We are ready to answer all your mortgage questions. For example, what about your excess value? What options do you have for your existing or new mortgage? And what stricter rules apply? We are happy to guide you through the process of closing your mortgage from age 57. Reassuring to know is that in any case there is no maximum age at which you can take out a mortgage.

Contact us today for expert advice and a personalized approach.


Mortgage from age 57: What changes?

For mortgage providers, your 57th birthday, or ten years before your state pension age, is an important moment. Starting at this age, they take into account your income from employment until state pension age and your retirement income thereafter. Since your retirement income is usually lower than your usual salary, this may result in a lower maximum mortgage.

This is not a certainty, however, because wider mortgage standards may apply from state pension age. This is because you pay a lower tax rate in the first bracket. Your financial advisor can make a detailed calculation to give you more insight.

There are some important points to keep in mind if you are over 57 when you take out a mortgage or have an existing mortgage. We explain these below.


A mortgage after your retirement

It is a common misconception that it is impossible to take out a mortgage after retirement. Fortunately, there are many options, even if you have lower or no income in the years leading up to retirement. While these often have different requirements than a regular mortgage, your retirement doesn’t have to get in the way of your mortgage application.


Cashing in surplus value

If you have lived in your home for a long time, you probably have accumulated a significant excess value. You can cash in this excess value in a variety of ways, such as with a top-up mortgage or by increasing your existing mortgage. This gives you the opportunity to remodel your home, supplement your pension or realize other desires.


Pay off your existing mortgage

Do you already have a mortgage in place? It may be advantageous to pay off your mortgage in full. Or perhaps it is more favorable to take out a repayment-free mortgage for your small residual debt. Our mortgage advisors will be happy to advise you on the best option. They can also examine whether additional repayment on your mortgage is a smart move, given the pros and cons involved.


What to do with your interest-only mortgage?

An interest-only mortgage has both advantages and disadvantages. The advantage is that you have low monthly payments and no repayment. The disadvantage is that at the end of the term, you have to pay off the entire mortgage debt at once. Not everyone has a substantial amount of money available for this. You can often take out a new mortgage, but keep in mind that the mortgage lender will reassess whether you can bear the burden.

It is wise to engage a mortgage advisor early to review your options and avoid having to force sell your home.


Death risk insurance from 57 years of age

When you take out your mortgage, you can also take out a variety of insurance policies, including term life insurance. For those over 57, it is often more expensive and more difficult to obtain because of higher age and possible medical history.


Refinancing your mortgage

Saving on your mortgage is always nice, especially if you can use an extra amount for retirement. You may be able to refinance your mortgage to have structurally lower monthly payments. This also offers the opportunity to optimize your mortgage conditions. Our advisors will be happy to help you explore your options.


Foreign pension

Pension accrued abroad is not shown in, but can count as income for mortgage applications. In this article we describe in detail how exclusively foreign pension can be used for a mortgage. In addition, pension equalization in case of divorce also applies to foreign pensions.

For example, if you have a 401k, this is an option to include in your mortgage application.


Income from annuities

Did you take out an annuity in the past? The expected income from this annuity can also be included in the mortgage calculation with most lenders. Therefore, please inform us about the current value of your annuity insurance or benefit amounts if you would like information about taking out a mortgage.


Rental income and pension

Have you been an entrepreneur during your working life and have not built up a regular pension, but have invested in property in The Netherlands that produces rental income? By default, this is not considered a steady income by banks. However, through customized solutions, in some situations it is still possible to take this income into account.

Especially entrepreneurs who are entitled to AOW within 10 years may face these situations. The challenge lies in determining a steady retirement income. The possibilities for this vary by bank.


Bottlenecks and developments

As a 57-year-old, you face stricter rules for your mortgage, such as a lower maximum mortgage. This can sometimes make it more difficult to move to a cheaper home due to your lower current income. Fortunately, there are more and more options for arranging a mortgage despite these challenges.


What are your options for a mortgage from age 57?

What are your options for a mortgage from age 57? Our experience shows that mortgage advice from this age is mainly customized. That is why we are happy to look at it with you. Make an appointment with a mortgage advisor to discuss your specific situation.


Tell us your story!

Want to know what mortgage options are available to you? Then feel free to contact us to schedule an initial consultation. This can be online and is set up in no time. We work nationwide.

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