The current loan instalment matches the income. Part of the repayment would, however, only take place after the planned retirement date. For your own decision it is therefore worth taking a second look at the timeline, rather than treating every year as if it were the current month of employment.
Differentiating between current proof and later assumptions
Our editorial recommendation: Compare the available information about later provision with the current income. Mark what is already documented and what remains an estimate. A planned date and a projection are not automatically the later binding start of payments and net amount.
Record the expenses phased as well. Some obligations may cease by then, others may be added. Use only traceable assumptions and explain them separately. The article does not state a generally sufficient pension amount nor any future inflation or interest rate forecast.
Linking credit assessment and personal life planning
§ 9 HIKrG focuses on the prospects of being able to fulfil the contractual obligations and requires information on income, expenses and other financial circumstances. The provision also contains a special rule for the possibility of death during the term. [KREDIT] This does not imply a blanket prohibition on lending after a certain age nor an automatic approval because the property has sufficient value.
Make the actual term and your planned transition an explicit topic in the financing discussion. Ask which assumptions underlie the offer. A general supervisory orientation or the reference to an asset holding value does not replace the bank’s individual decision and your own stress test.
Ask about the remaining debt at decisive moments
Have the contractually intended payment and remaining debt schedule explained to you. Relevant may be retirement start, end of a fixed interest period and other foreseeable changes. Compare the timings without improvising your own professional repayment plan from them.
For variable or later to-be-agreed conditions, assumptions should remain visible. A special repayment, a sale or an inheritance must not be planned as secured money if the basis and timing are open. If a planned payment is essential for the model, it needs corresponding proof and, where appropriate, a new assessment.
Example: The instalment remains, a payment ceases
A household today takes into account, in addition to the salary, another income that is limited in time. This would no longer exist at the planned retirement start. In the second scenario it is therefore not simply carried forward. The household treats the later cash flow separately and discusses with the bank which contractual options can actually be offered.
Derive a decision from the comparison
If the later period only works with an unsecured assumption, that very assumption is an open point for review. Possible changes to loan amount, term or repayment are to be compared on the basis of concrete offers. The article does not recommend any particular product. It helps to understand a long-term commitment also for the period in which the current employment income is likely no longer available unchanged.