Does my age matter in getting a loan?

Any general questions you might have in regards to loans and finance.
Margot88
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Joined: Mon Jan 21, 2019 8:26 pm

Does my age matter in getting a loan?

Postby Margot88 » Mon Jan 21, 2019 8:28 pm

Hey there,

I’m looking to purchase a property in Noosa Heads where I can move with my family. It is currently priced at around $600,000 but I am a 45-year-old marriage counsellor and I am planning on retiring in a few years time. I wanted to know whether my age would be an issue in getting approved for a home loan.

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Otto Dargan
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Re: Does my age matter in getting a loan?

Postby Otto Dargan » Mon Jan 21, 2019 8:46 pm

Hi Margot,


Welcome to the forums.

Most banks usually restrict the borrowing capacity of people who are over the age of 40, and might even try to limit your loan term so that the loan is repaid in full before the standard retirement age of 65.

Check out this info on retirement age home loans.

For the lenders to approve your loan, you will need to prove that you are capable of repaying the loan before you turn 65. You may be required to show superannuation statements or demonstrate that you have an exit strategy in place to repay the loan before you retire.

Of course, your exit strategy may be to continue working past the standard retirement age.

Call us on 1300 889 743 or complete our free assessment form and we can help you find a lender that will accept your situation.


Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

Margot88
Posts: 3
Joined: Mon Jan 21, 2019 8:26 pm

Re: Does my age matter in getting a loan?

Postby Margot88 » Mon Jan 21, 2019 9:08 pm

Ah! Thanks for the information. I also have some money saved up in my super. When the time comes, can I use it as a deposit for the property?

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Otto Dargan
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Joined: Sat Sep 06, 2008 5:55 pm
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Re: Does my age matter in getting a loan?

Postby Otto Dargan » Mon Jan 21, 2019 9:13 pm

Hey Margot,


We recommend that you have at least 5% to 10% of the property value in genuine savings i.e funds that you have saved over time.

Using super as a deposit is very difficult and often isn't worth the effort.


Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Margot88
Posts: 3
Joined: Mon Jan 21, 2019 8:26 pm

Re: Does my age matter in getting a loan?

Postby Margot88 » Mon Jan 21, 2019 9:29 pm

Hmm. That gives me something to think about. Can you tell me how much I can expect to borrow, given that I can show I have 5% to 10% of the property value as a deposit?

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Otto Dargan
Mortgage Specialist
Posts: 7651
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: Does my age matter in getting a loan?

Postby Otto Dargan » Mon Jan 21, 2019 11:43 pm

Hey Margot,


You can try out our borrowing power calculator to find out how much you can expect to borrow.

Also note that since you’re close to retirement age, lenders typically require you to provide an exit strategy for how you plan to pay off your home loan.

Some acceptable mortgage exit strategies are:


Reducing the loan term: This includes making sure your home loan is paid off before you retire. Please note that the retirement age varies from lender to lender.

Downsizing your property: You can sell your home and move into a smaller property after you retire. However, some lenders may not accept this.

Using your super fund: You can use a lump sum or ongoing income from your super fund to pay the loan after you retire. Some of our lenders accept a projection of your super and mortgage balance as evidence that you can repay the loan.



Please call us on 1300 889 743 or complete ourfree assessment form and one of our mortgage brokers will assist you in applying for a home loan.



Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts


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