Obtaining a 40-year mortgage is not easy, choosing correctly the term in which a mortgage expires is very important when comparing commissions; paying a mortgage in 22 years is the usual average term according to the latest data from the national statistical institute.
For this reason, most entities usually set a maximum time of 30 years, but in some cases if the bank allows it, they can receive a 40-year mortgage.
This very high term usually has monthly fees much lower than the other terms, however, you will end up paying much higher interest as well.
Conditions for the 40-year mortgage loan
The conditions you need to opt for this type of mortgage at 40 years resides largely in the age of the owner, if the owner is older than 75 years, banks will not offer this type of mortgage for obvious reasons, and if the owner is between the ages of 40 and 45 and it is difficult to get a mortgage for more than 20 years.
In this case, the banking entities will force us to contract many products such as life insurance, pension plans and, among others, to ensure that they will get their investment back.
It is advisable to provide as much savings as possible so that in this way you need less financing from the bank, the lower the financing, the less expensive it will be.
The idea is to arrive at retirement with a home that is fully paid, not leaving debts to our loved ones.
What banks offer this mortgage to 40 years?
There are not many banks that offer this service, but those who offer it perform a study are very exhaustive in this type of long term.
Some banks that offer this service are:
- 40-year mortgage: the interest rate is variable, so the Maxibank that affects the interest could change over the term, without commissions, but it needs payroll, life and home insurance.
- Parabank: offer with a maximum term of 40 years, with the condition that it is the first home in the holder’s stock.
- CX Mortgage: commercializes a mortgage with a term of 40 years, provided that it is destined to the purchase of the first or second home.
- BMN: has an offer called a young bonus mortgage in which only holders younger than 35 can opt.
- CamBank: I also launch a 40-year mortgage with a variable interest rate, however, months later I eliminate it, so in the market there is only ING Orange for 40-year mortgages.
Sadly, at present there is no bank that offers a 40-year fixed-rate mortgage.
Is the 40-year mortgage a good idea?
It all depends on the situation you are in and the savings you have, however, it is not good to have debts as long as they are 40 years, the Maxibank can vary a lot in those years and could face a bad surprise and Take it to ruin just for the 40-year mortgage.