Hi callofjuarez,
Lenders have different opinions about what a reasonable exit strategy is.
As a general rule, investment loans don't need an exit strategy as you can sell an investment property when you retire and it won't mean you lose your home. On the other hand, selling your home to pay out a debt leaves you with nowhere to live, which lenders see as putting you in financial hardship.
Lenders commonly accept strategies that include:
- Reducing the loan term: This is to ensure you pay off your home loan before you retire (the acceptable retirement age varies from lender to lender).
- Downsizing your property: Some lenders are ok with you selling your home and moving into a smaller property after you retire.
- Using your super fund: You can use a lump sum or ongoing income from your superannuation fund to pay out the home 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.
If these strategies doesn’t work for you, it may be better to avoid getting a mortgage.
You should apply only when you’re sure that you have a solid exit strategy that you've discussed with your financial adviser.
Please
enquire online or call us on
1300 889 743 to speak to a mortgage broker who specialises in finding home loans for foreign citizens.
Cheers,