It’s essential to start planning early for your retirement. As a public employee, you can take advantage of your regular income and take out a mortgage to purchase a home. It’s easier to pay your mortgage when you still have the flexibility and enough time. Look at these six benefits of homeownership before the age of 60.

Let’s Explore Some Benefits of Retirement Planning

It’s easier to Qualify For a Loan

Even though lenders should not deny you a mortgage because you’re a retiree, banks may make it harder for you to get one. Qualifying for a loan while you’re still working is easier, and you even qualify for a higher credit than in retirement. But if you take a mortgage before retirement, all you need are payslips and W-2 forms or merely by being an employee of the state.¹

You’ll Have More Money to Improve Your Home After Retirement

It’s not easy to get a house that matches your exact taste. In your retirement planning consider buying a house. It will give you enough time to plan for home improvements if need be. You will also have time to figure out other features that may need improvement to accommodate mobility or health difficulties you might encounter as you age.

You Have Financial Power To Take on Unplanned Expenses

There are some home repair needs that you’ll only know when living in a house. Some of these repairs may be costly and maybe unexpected. When you are still working, you have more financial muscle and flexibility to undertake such expenses. But in retirement, it can be quite difficult to replace those expenses without an income.

You’ll be Aware of Your Expenses Before Retire

Buying your home early ensures that you’re aware of your expenses before retirement, enabling you to budget more accurately. Taking a mortgage in retirement means that you are taking on new expenses without an income. It can turn out to be a substantial financial burden that you don’t need to have at that time. 

Your Home is An Asset

You might decide to spend your retirement in another house or state. Since you may not be eligible for higher credit, having a home to sell to finance your retirement home can be beneficial. It makes it easier for you to transition without incurring a huge financial burden than taking a mortgage. It’s a form of savings.

Financial Liquidity

If you deduct your mortgage balance from the value of your home, the amount remaining makes your home equity. The actual portion of the value of your home that belongs to you. Every mortgage repayment you make reduces the debt you owe on your house, automatically increasing your equity. It’s good to retire with solid liquidity and a home.²

Benefits of Retirement Planning

Homeownership allows you to make a living environment of your choice. You can renovate as you wish, own pets, or make any changes to fit your style without seeking anyone’s approval. Take advantage of the low-interest rates and make your homeownership dream a reality.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm). A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore

Branch Manager”


Links to External Sources:

  1. The Equal Credit Opportunity Act
  2. What is financial liquidity? Here are 5 things you should know