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Going on 60 years old Looking to purchase an investment property

Posted: Wed May 15, 2019 5:53 pm
by Andre
Hi, we’re really keen on purchasing another property as an investment The contract price is $730,000 approx. and it’s located in a great area in Geelong VIC. We may sell it later or downsize from our current property to it. I’ll be 60 years old come July, and my wife is in her late fifties. We own our house completely, the market prices for similar properties near us are between $850,000 to $900,000. Our combined super balance is $220,000. As we’re nearing our retirement age we’ve been told that it’s harder to get approved for a mortgage. Is that true? If so, how do we qualify for a home loan?

Re: Going on 60 years old Looking to purchase an investment property

Posted: Wed May 15, 2019 7:15 pm
by Otto Dargan
Hello Andre. Welcome to the forums.

The secret to getting approved if you’re 50 years or older is to apply with a lender that has flexible lending policies for mature borrowers nearing retirement age.
Most banks are likely to decline your application if you’re over 60 years old. However, if you’ve got a continuing source of income past retirement, or have assets you can sell to help repay the loan, then your loan may be approved.

In order to qualify for an old age mortgage:
  • You must have a defined exit strategy. If no exit strategy is provided then the loan term must not exceed the expected age of retirement.
  • You must repay the loan prior to retirement.
  • Apply with the right lender that understands and accepts mature borrowers.

Give us a call on 1300 889 743 or fill in our free assessment form to find out if you qualify for a retirement age home loan.

Cheers,

Re: Going on 60 years old Looking to purchase an investment property

Posted: Wed May 15, 2019 7:35 pm
by Andre
We’re making the maximum concessional contribution to our super every year. We will be downsizing when I retire, likely when I’m 65. Is it an acceptable exit strategy?

Re: Going on 60 years old Looking to purchase an investment property

Posted: Wed May 15, 2019 7:58 pm
by Otto Dargan
Hi Andre,

The exit strategy depends on your income, assets and retirement plans.
Commonly accepted strategies include:
  • Downsizing to a smaller home when you reach retirement (not accepted by all lenders)
  • The sale of assets such as investment property or shares.
  • Lump sum repayment from your superannuation.
  • Ongoing income from superannuation.

Cheers,