While job stability and payment capacity are common factors people consider when applying for a mortgage loan, age is an often overlooked yet significant factor that financial institutions use to grant or deny such loans.
A study by Dinero.mx found that various barriers and disparities in minimum age requirements affect aspiring homeowners, impacting their access to housing in the country.
Age as a Key Factor
According to the analysis by Dinero.mx, banks like BBVA, HSBC, Scotiabank, and Banorte require a minimum age of 25 years for housing loans, while Inbursa sets it at 30.
Evaluating loan conditions revealed that the ideal age range for securing a mortgage is from 25 to 40 years old. After this age, loan terms shorten and monthly installments increase, while the maximum loan amount tends to decrease.
At 25, many individuals are in the early stages of their careers but are also establishing job stability—a factor considered by financial institutions. Banks favor clients with increasing incomes, which can improve credit conditions over time.
Beyond 25
Though young adults are attractive to banks due to their long productive lives ahead, often their earnings and savings do not meet the desired standards. In contrast, older adults may stand out in securing favorable loan conditions.
The maximum age for obtaining a housing loan typically depends on life expectancy. Dinero.mx noted that the sum of the borrower’s age and loan term should not exceed 75 years, although it varies by institution—ranging from 70 to 80 years.
Additional Considerations for Choosing a Mortgage
- Ensure job stability and sufficient income to cover the property down payment, monthly payments, and additional expenses like taxes and deeds.
- Maintain a good credit history.
- Define your purchase objective—whether building wealth or making an investment.
