Sure. If a borrower is close to the retirement age, lenders typically require you to provide an exit strategy
for how you plan to repay the home loan.
The banks may knock back your home loan application if they deem your exit strategy plan high risk or unviable.
Your exit plan will depend on your income, asset position and retirement plans.
Common strategies include:
- Downsizing to a smaller home when you reach retirement (not accepted by all lenders).
- The sale of assets such as investment properties or shares.
- Lump sum repayment from superannuation.
- Ongoing income from superannuation.
It is best to speak with your accountant about an exit strategy that works for your financial situation.