Owner retirees: how to easily borrow from over 60 years old thanks to your accommodation

The company HOLGO raises 250 million euros this April 8 to industrialize its “loan 60”, intended for owners of main residences aged over 60 years.

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Not easy to get a bank credit Once the sixties have passed, with less life expectancy and retirement in retirement. In France, less than 4% of people aged over 60 managed to obtain one in 2022 (latest data available), says Arrago. Specialized in Mortgage life loangranted in return for a mortgage on housing, this young company, born in 2017, announces a fundraising of 250 million euros from European institutional investors, this Tuesday, April 8. Capital that must allow it “To industrialize” his “loan 60”, “An adaptation of the mortgage life loan”explains to Capital Alexis Rouëssé, CEO (Chief Executive Officer) of Arrago.

This loan 60 is intended for people over 60 years owners From their main residence, for the simple reason that it is guaranteed by the value of the property. Concretely, the latter is mortgaged. “”The amount of the loan depends on this value, the location of the borrower’s property and the age ”details Alexis Rouëssé. On average, Arrago customers are 76 years old and borrow 130,000 euros from the company’s partner banks, such as the Municipal Credit of Nantes and the Crédit Communal in Alsace and Lorraine. “There is No medical questionnaire But, beyond 75 years, a medical opinion is necessary to ensure that the person understands what type of loan they subscribe ”specifies the manager. A loan issued between 45 days and three months after the request, he adds.

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A loan to finance all kinds of projects

If the law prohibits this type of loan from funding a professional activity, it is not however “affected” : the borrower can use it for finance various projects. “The main reason which leads to subscribing to loan 60 is the reimbursement of mortgage balances or consumption, which, with the drop in income related to retirement, can weigh heavily in the household budget”indicates Alexis Rouëssé. Another use of the loan 60: the financing of energy renovation work to be able to continue to perceive the rental income of accommodation noted G on the diagnosis of energy performance (DPE) and, therefore, prohibited from rental since January 1.

This loan can also finance theAdaptation of the main residence to the old daysby transforming the bathtub into a shower or by installing a staircase. But borrowers can just as easily use it to pay for their grandchildren’s studies or help them buy accommodation.

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Ultimately reimbursement

The loan is ultimately reimbursed, at its end, during the lifetime of the borrower or during his succession, or even at the time of his choice. Take the example of Bernard, 78 years old and owner of a house estimated at 560,000 euros. Via Arrago, whose income is made up of commissions received from banks, he borrows 170,000 euros to carry out work in his house, help his granddaughter to spend his driving license and make a nice trip. Ten years later, at the time of his succession, his house was valued at 630,000 euros by an independent expert. Based on a nominal interest rate (excluding insurance) of around 6%, the amount of capital and interest to be reimbursed amounts to 317,618 euros. Two options are available to heirs de Bernard. Either they have the means to reimburse this amount and keep the house, or they sell it to reimburse the bank and recover the surplus of 312,382 euros.

Well developed in other European countries, by competitors, the mortgage life loan “Do not meet No cultural obstacle in France»»says Alexis Rouëssé. After granting some 400 loans in 2024, for a total amount of 55 million euros, the company, which really started its activity in 2023, aims at the distribution of 1,000 loans per year by 2026, for a total amount of 135 million euros, then 7,000 in three to five years, one billion euros per year.