52-year-old looking for a home loan

Any general questions you might have in regards to loans and finance.
Terry0Q
Posts: 4
Joined: Mon Feb 18, 2019 3:26 pm

52-year-old looking for a home loan

Postby Terry0Q » Mon Feb 18, 2019 4:01 pm

Hello,

I stumbled upon your business by chance but I was wondering if you could help me out. I’m a 52-year-old carpenter from Greenbank and I’m looking to purchase a house worth $650,000 in Altona, Victoria. I’ve been hearing from my friends that banks here in Australia tend to have strict home loan policies for old folks like myself. Is this true? If so, is there any way around it? I’d like to know.

Thanks.

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Otto Dargan
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Re: 52-year-old looking for a home loan

Postby Otto Dargan » Mon Feb 18, 2019 4:20 pm

Hi Terry,

Welcome to the forums.

Unfortunately, it’s true! Australian banks tend to have strict lending policies that restrict the borrowing capacity of mature borrowers or borrowers nearing retirement age such as yourself.

However, there are still lenders who implement flexible policies that approve retirement age home loans.

Here are a few tips to getting your loan approved:

You must have a defined exit strategy.
You must be able to repay the mortgage prior to retirement.
You should apply with a lender that understands and accepts mature age borrowers.

Please call us on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will help you find a lender that can get your loan approved.

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

Terry0Q
Posts: 4
Joined: Mon Feb 18, 2019 3:26 pm

Re: 52-year-old looking for a home loan

Postby Terry0Q » Mon Feb 18, 2019 4:46 pm

Hey,

Cool! Thanks. I’m actually thinking of retiring in a couple of months. That means that I’ll be receiving my monthly annuity very soon. I’m actually thinking of using it as my deposit for the home loan! Will this be a problem? Can you tell me if it’s possible?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: 52-year-old looking for a home loan

Postby Otto Dargan » Mon Feb 18, 2019 7:11 pm

Hey Terry,

Most lenders are very aware of the risks associated with annuity income home loans.

Even though annuity income is quite a stable form of income, most lenders still consider it to be high-risk. This is mostly because it is directly affected by the economy and market conditions.

Lenders will check whether you will be able to repay the loan and whether you are capable of making the repayments on time.

Lenders take age into consideration when assessing a retirement age home loan application.

However, if you are able to prove that your income can support your loan repayments, you might be able to find a lender to help you.

This may be more likely if you meet at least one of the following requirements:

Your annuity income is permanent and ongoing.
The income will continue until the end of the loan term.
You have a defined exit strategy, i.e. you are able to prove that you can pay off the loan from the sale or realisation of assets, e.g. investment property, shares, and lump sum from super.

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

Terry0Q
Posts: 4
Joined: Mon Feb 18, 2019 3:26 pm

Re: 52-year-old looking for a home loan

Postby Terry0Q » Mon Feb 18, 2019 7:57 pm

Hey, Thanks for the information. One last question! What documents will the lenders ask for?

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Otto Dargan
Mortgage Specialist
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Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
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Re: 52-year-old looking for a home loan

Postby Otto Dargan » Mon Feb 18, 2019 8:16 pm

Hey Terry,

Almost all lenders will require a written exit strategy, evidence of your superannuation and other assets that can be sold to repay the proposed debt.

They will require evidence of your current employment and income situation in the form of your last two payslips and your most recent group certificate showing your net income.

Alternative income evidence can be considered if you're self-employed or otherwise cannot provide traditional income documents. Low doc options are also available.

We have a panel of almost 40 lenders and some of them have flexible retirement age lending policies. Please enquire online or give us a call on 1300 889 743 and tell about your situation.

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

Terry0Q
Posts: 4
Joined: Mon Feb 18, 2019 3:26 pm

Re: 52-year-old looking for a home loan

Postby Terry0Q » Mon Feb 18, 2019 8:31 pm

Sure thing, Otto. I will be calling you first thing tomorrow morning. Thanks for helping me out with this.


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