Whether it’s for an unexpected expense or you’re looking to go on holiday. There are times you might find yourself in need of some additional funds when you’re on a pension. Loans for pensioners do come with some restrictions, but our team will strive to secure you the best financing option available. So, let’s go through some of the hurdles retirees and other pensioners might face when they get a loan and how we can help.
The expert team here at Loantec knows how to secure the lowest interest loans with the best options. Our pre-qualification process is simple. By filling in our pre-qualification form our Finance Technicians will be able to assess your situation and find the best deal for you.
When you’re on a pension it can be difficult to get a large loan. This is because it’s unlikely you’re making a substantial income. Income is a key factor for many lenders. And a pension income generally isn’t high enough for most lenders to utilise for a loan.
If you’re not working, due to retirement or a disability, you’re more likely to be rejected for a loan. Or you might be given a higher interest rate. This is because you’re seen as a higher risk of being unable to repay the loan.
You can increase your chances of approval by only looking to get a small loan, or using collateral to act as security against the loan. This can also help you get a lower interest rate as well!
Loantec operates a little differently from the big banks and traditional lenders. Our unique pre-qualification process means we can get an accurate understanding of your options. Without needing to run a credit check or affecting your credit score. We only put in a formal application once we have found a deal that we are confident you will get approval for. To start just fill in our pre-qualification form and then our Finance Technicians will be in touch.
While loans for pensioners can sometimes be difficult to get. You’ve still got options that’ll help you get the financing you’re looking for.
Personal loans are arguably the most common type of financing, and they’re still a great option for pensioners. You’ll still be judged by similar lending criteria as everyone else. And if you’ve got a good financial history and assets to back up the loan, it’ll improve your chances of approval.
If you’ve got assets like a house, you’ll be able to capitalise on your equity. Every time you made a payment towards the principal of your mortgage, you were building equity. And if you own your home outright, the amount of equity you have is equal to the value of your home.
Make the most of your years of hard work paying off your home loan, by using that equity to meet your financial needs now. You can leverage the equity in your home to cover any unexpected expenses. Or to make the most of an investment opportunity.
One particular method of using your equity that’s almost exclusively available to people 60 years and older is a reverse mortgage.
Reverse Mortgage Loans for Pensioners
When you’re over 60 years old, you can borrow up to 15% of the total value of your home. The amount you can borrow goes up 1% for each year, capping out at 45% when you hit 90.
The loan can be taken out in a single lump sum, as an income stream, a line of credit or a combination of these options. There is interest, but usually, you don’t need to pay the loan while you live in the house. Only once it’s sold or you pass away.
You’re essentially drawing away from your equity, so the more you borrow the less equity you’ll have.
By working with 40+ lenders and comparing all their policies, we’re able to get the best deal for our clients. So, you can rest assured that you’ll be getting the lowest interest financing when you work with Loantec.
When you work with us, we’ll take the time to assess your circumstances to get you the best financing option. We’ve made the process of getting the best loan easy. All you need to do is fill in our pre-qualification form. From there, our Finance Specialists will work to secure the funds you need.