Is it True That Banks Don't Give Loans for The Elderly?
A lot of people faced this problem when they needed money. Banks are simply having second thoughts when they need to give out loans to senior citizens. This is somewhat unfair, a whole group of people being discriminated because of their age, but it is what it is, senior citizens just can't get a standard loan from a bank.
Based on this first paragraph, you'll probably think that as a pensioner, you can't get a loan from the bank, right? Well, the answer is not just yes or no. Yes, you can't get a standard loan if you have reached a certain age, but no, it is not true that there are no loans for the elderly.
Knowing that the elderly also need loans sometimes like the rest of the population and also having in mind that the senior citizens are not the most eligible group of people for giving loans to, the banks have found a solution that is a win-win outcome for the both. They created loans for the elderly that are both acceptable for them and for the bank. These loans are called reverse mortgage loans and they are really popular in Australia and around the world.
You might've heard or maybe you haven't, but the age for getting retired from work is getting higher and higher each year. The plan of the Australian government is to raise the bar to the age of 70 by 2030 which will probably be a good thing for asking a standard loan, but not so good for people that are keen to get retired. However, as the age goes up, the chance for getting a standard loan get smaller. So if you need a loan desperately, take a look at this option called reverse mortgage.
The reverse mortgage plan is made for the elderly. The person asking for this kind of loan must be a senior citizen or be over at least 60 years of age. Some banks will ask even 65 depending on their bank politics. The other thing you must meet as a condition is to have a property. A house, an apartment, whatever. The bank will give you the money you asked for and in return, they'll get a share of the equity of your property. This way, when you decide to sell or you pass away, the bank will get their share.
The good part is that you don't have to return anything ever to the bank. Your property is guarantying for you that the bank won't get short. This also means you don't have to worry about the loan ever again. Just get the money, spend it the way you like it, and just forget about it. However, before signing, look for the terms and the interest rates of different banks because a small difference in rates can make a huge difference when selling the house and getting your own share. This is probably the best of loans for the elderly, but you still have to look out for the details.