Retirement Age Borrowing Power Calculator

Enter your details below and discover whether your exit strategy for a home loan will be acceptable to the bank.

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Disclaimer: This calculator has several assumptions and simplifications and so should be used as a guide only. Please seek independent financial advice and your own circumstances before making any decisions about your home loan repayments. Making interest only repayments can significantly increase the cost of your mortgage over the term and expose you to higher repayments at the end of the interest only term

Does your exit strategy stack up?

If you’re close to retirement age, lenders typically require you to provide an exit strategy for how you plan to pay off your home loan.

The bank may knock back your home loan exit strategy if your plan is deemed high risk or unrealistic, or doesn’t otherwise meet te lender’s policy.

The solution:

  • McGuinness

    I have a well defined mortgage exit strategy and yet I was declined by the bank I first went with. Can your brokers help me qualify as I don’t think I can on my own?

  • There are three important steps to getting loan approval especially if you’re 50 years or older – you must have a defined exit strategy, you must repay the loan prior to retirement and you should apply with a lender that understands and accepts your specific situation. Our brokers are experts in the policies of major lenders and know which banks have lenient lending guidelines so please call 1300 889 743 to speak with an expert mortgage broker.

  • paxton

    Can I have a simple example of an acceptable exit strategy to qualify for a home loan using annuity income?

  • Hi paxton,

    You can simply prove that you could pay off the loan from sale or realisation of assets, e.g. Investment Property, Shares, and Lump Sum from Super. Two of our lenders can help with the annuity income home loan though your income will need to be permanent or outgoing, or it will need to continue until the end of the loan term.

  • Caruso

    I’m a small business owner and my son will take care of the business once I retire but I’ll still be earning through it. Will the banks be able to accept this?

  • Hey Caruso,

    Some lenders may not be able to accept this. However, we can present a case to some of our lenders to show that you can continue to make your mortgage repayments past the normal retirement age. Please feel free to contact us by calling 1300 889 743 to find out more.

  • Conno

    I’m just wondering if you were able to help McGuinness aquire a home loan with their well defined exit strategy,it would be good to here some positive news on this front. A lot of brokers talk the talk but are unable to deliver and every broker has a different story even if there are using the same lender?

  • Hi Conno,
    We can’t disclose the individual circumstances of a particular person. However we can say we’ve had many wins on this front with customers who are declined by their bank due to their expected retirement age and exit strategy. You can read about some of the difficult loans we’ve arranged here https://www.homeloanexperts.com.au/about_us/testimonials/

    We can’t help everyone of course. As a general rule if you have a sound strategy to pay off your home loan by downsizing, with additional repayments, superannuation or selling an investment property then we can usually get your loan approved.

  • Ethel

    We are not sure of all the different lenders out there so can you help me understand what which lender is good at what they are typically bad at? Just the big 4 will do I guess.

  • Hi Ethel,
    We have an entire section on our website that has expert reviews on different banks as well as non-bank lenders all over Australia. It includes their strengths and drawbacks so please feel free to scour through the section as much as you’d like:
    https://www.homeloanexperts.com.au/lender-reviews/

  • Baldwin

    May I get some help from your brokers to help me with some calculations on my investment property purchase? I want to know if I will be negatively gearing or not.

  • Hello Baldwin,

    You can actually simply try out the investment property cashflow calculator to get an accurate estimation of the weekly cashflow position of your next investment property and find out whether your property will be positively or negatively geared. Here’s the link to the calculator:
    https://www.homeloanexperts.com.au/investment-loans/property-investment-calculator/

  • Abraham

    I’m 56 years old and am seeking a mortgage. I have applied for a home loan with Liberty and they’ve asked for an exit strategy. I was wondering what exit strategies would lenders accept if you are seeking a home loan and it’s clear you will be in retirement within a 25 or 30 year home loan term?

  • Hi Abraham,
    Lenders have different opinions about what a reasonable exit strategy is but all agree it should be a realistic one. As a general rule, investment loans don’t need an exit strategy as you can sell the investment property when you retire and it hasn’t affected your home. Whereas selling your home to pay out a debt leaves you with nowhere to live. Some lenders will accept this if you have enough equity to downsize to a smaller property, but most would decline your loan. You can also show evidence of your superannuation, shares or other property that can be used to pay off a home loan. Some lenders will allow a conservative projection using the growth of your superannuation.