I’ll be retiring at 65, what are my home loan options?

Any general questions you might have in regards to loans and finance.
Post Reply
User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: I’ll be retiring at 65, what are my home loan options?

Post by Otto Dargan »

Hello Ricky B. Welcome to the forums.

That is absolutely correct. Different banks have different policies for borrowers that are nearing retirement age.

For borrowers who are 55 years old, almost all lenders require:
  • A written exit strategy.
  • Evidence of your superannuation balance.
  • Other assets that can be sold to repay the proposed debt as part of your exit strategy.
The secret of getting approved is to apply with a lender that has flexible policies.

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

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: I’ll be retiring at 65, what are my home loan options?

Post by Otto Dargan »

Hi Ricky B,

Banks require proof that you can repay the loan without hardship.

If the loan term extends past your likely retirement age they want to know how you intend to repay the loan after your retirement.

This is where an exit strategy comes into play.

The exit strategy that you provide to the lender can vary depending on your asset position, income and retirement plans. Common strategies include:
  • Downsizing to a smaller home when you retire (not accepted by all lenders).
  • The sale of assets such as shares or investment properties.
  • Lump sum repayments from superannuation.
  • Ongoing income from superannuation.
If no exit strategy is provided then the loan term must not exceed the expected age of retirement.

In your case, your max loan term would be 10 years.

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

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: I’ll be retiring at 65, what are my home loan options?

Post by Otto Dargan »

Hi Ricky B,

It depends. A shorter 15-year home loan term entails higher monthly payments than if you were to go for a longer 30-year term mortgage.

You save on interest over the entirety of the loan term by going with a shorter loan term. If you can afford the higher monthly repayments then it makes sense to go with a shorter time frame.

Speak with one of our experienced mortgage brokers who can assess your situation and present the best options available to you.

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

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

Post Reply