A long-term loan allows you to benefit from smaller monthly payments but also to have a larger loan amount, especially when it comes to the purchase of real estate such as a house or an apartment. . Many borrowers therefore opt for a loan over a long period, which will allow them to have an adjusted monthly payment, not too high and to be able to carry out their projects throughout their life.
A credit is considered long term from 25 years, and can extend up to 35 years depending on the credit institutions. The amount must be at least 75,000 dollars for a mortgage, and will be accompanied by a guarantee, either by mortgage or by guarantee.
How to obtain a long-term mortgage?
All credit institutions and banks do not offer long-term loans, this is precisely the difficulty for borrowers in their search for home loans, with which is more the best offers with current rates. Some institutions only position themselves on short-term loans, that is to say between 10 and 20 years. On the other hand, there are indeed banks that finance mortgage loans on long durations, from 25 years but also on 30 years and 35 years. These establishments are often specialists in mortgage loans, that is to say loans whose guarantee is based on a mortgage of the property.
To obtain a mortgage for a long period of time, all you have to do is fill out an application under the home loan simulator. The latter makes it possible to probe establishments that are positioned only on long durations, greater than 25 years, this is the assurance for the borrower to find a loan according to his needs but also to receive several offers from different establishments, which allows them to compete and get the best offer.
40-year mortgage, is it possible?
To date, no organization offers mortgage loans over 40 years, the establishments offering the longest terms are on loans at 35 years, accompanied by a mortgage guarantee. The duration remains a determining element in the cost of the credit but also in the risk on the lender side, it is for this reason that some do not venture into long durations, for fear of not recovering the sums loaned.