Many senior borrowers have been able to access the property with the help of a zero rate loan. However, is this type of loan eligible for grouping of credits for seniors?
Restored credit buy-back: the zero-rate loan
Many borrowers have become homeowners by partly financing their properties with a zero interest loan, also called PTZ. This loan allows a borrower to finance part of his property under certain conditions.
The advantages of this credit agreement are diverse and varied, the borrower will have no interest to pay on this financing, the cost being borne by the State. However, this loan needs to be accompanied by principal financing so that the borrower can acquire his principal residence.
Even with a PTZ, the transition to retirement can generate a drop in income which can lead to complications if the borrower has several loans. Monthly payments can quickly become unsuitable for his financial situation, leading to situations of bad debt or over- indebtedness.
In this type of situation, the borrower on retirement can request a grouping of credits, by including all of his outstanding amounts including his loan at zero rate in order to obtain a unique and reduced monthly payment.
Repurchase of senior credit: include your loan at zero rate
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Seek debt consolidation can have many benefits for retired borrower. By having only one loan and only one monthly payment, it has better management of its financial situation.
However, a senior borrower is not necessarily a winner including his PTZ in its loan consolidation. Indeed, this loan does not hold an interest rate for the borrower and it may be more interesting to keep it in this form than by including it in the new loan.
However, this decision depends on the financial situation of the borrower when making its consolidation loans. It is sometimes possible that the borrower has no choice but to include his zero rate loan in his credit repurchase. The aim is to avoid submitting an over -indebtedness file to the Best Bank or to lose property.