End of senior bank loan
Major banks end up with what has been called Senior Loans
Retiring does not just mean that you are unemployed and can live out your days in financial security thanks to working hard for a good pension. Retirement life also involves a lot of restrictions – especially as now when the major banks end up with what has been called Senior Loans. See homeassociates.org for details
Banks have stopped with is granting what is called a senior loan
Something that many of the major banks have stopped with is granting what is called a senior loan, which means that as a pensioner you cannot mortgage your home in the event that you need to strengthen the household cash register. You can also find it difficult to take out a new loan in the form of, for example, a home loan when you as a pensioner are not really counted as having a decent income which means that many criteria must be met before a loan is granted, so that the senior loan disappears is really something that can come to question it. Fortunately, however, there are other ways to stabilize the household cash register, just knowing how to go about it .
How to get the economy together without senior loans:
It is possible to apply for a home loan as a pensioner, but it is more difficult to get the loan granted. What this means is that your pension must suffice for both interest rates and any repayments in the bank’s calculations, and then you have to have a good pension for what the bank expects is an interest rate of 6–7 per cent, which is almost USD 400 a month for every USD 100,000 you borrow. One tip is therefore to change housing to a smaller one and therefore also cheaper which gives more money in the cash register every month. But there are also other ways to wipe out the household cash without going to the big banks, and that is by borrowing smaller amounts from other lenders. Read more about our terms and interest rates under the heading Prices / interest rates.