What is the maximum age to apply for a mortgage loan?

What are the maximum financing deadlines for mortgage credit?

Since April 2022, maximum financing deadlines in housing loans have been reduced. At this moment, those who intend to buy a house with a new credit will have a lower limit. These limits are imposed according to the age of the borrowers.  

In other words, customers who are 30 years old or younger can get a housing loan with a maximum term of 40 years; borrowers between 30 and 35 years old can have a limit of up to 37 years, and clients over 35 years old can have a contract lasting up to 35 years.

According to the Bank of Portugal, the reduction of these limits aimed to preserve banking institutions from taking excessive risks when granting new credits, promoting "access to sustainable financing for consumers, minimizing the risk of default".

However, in the case of the property being intended as a secondary residence, the maximum financing term can be up to 30 years, regardless of the age of the holders. If the clients pose a credit risk, upon analysis, the financing term may also be limited to 30 years.

But is there a maximum age to apply for a mortgage loan?

Yes, in most banks. As a rule, banking institutions only allow you to take out a mortgage up to 75 years of age.  

This also applies to the age you have at the end of the credit contract. That is, if you are over 35, you can only have a maximum financing term of 35 years, as long as your age at the end of the contract does not reach 75 years old.

For example, if you take out a home loan at 45 years old, in most banks you can only have a maximum financing limit equivalent to 30 years (because you will be 75 years old at the end of the contract). Therefore, in practice, you can only have a maximum contract duration limit of 35 years, between the ages of 35 and 40.

By the age of 75, the older you are, the less credit maturity banks allow and you will have to pay off the loan in less time.

However, note that there are banks that can finance up to 80 years of age of the oldest account holder, as long as the maximum financing term of 30 years is not exceeded (in the case of clients over 50 years old).

What are the advantages and disadvantages of hiring credit at an older age?

Hiring a home loan at an older age has its pros and cons. Paying off the loan in less time can have advantages and disadvantages.

When the financing term is shorter, there are fewer installments to pay, which means you will also not pay as much interest. By reducing the Total Amount Imposed on the Consumer (MTIC), credit becomes cheaper.

Another advantage is the fact that the deadline ends faster and you don't have to bear the burden for a long period of time to recover the family budget. 

If you still have doubts regarding the financing deadlines for home loans, or any other questions about this process, you can rely on the help of the credit intermediaries Poupança no Minuto. With a free service, they clarify all questions and stay by your side throughout the entire process of contracting a home loan for your new house.