Mortgages for over 50s

Did you know that many banks have lending policies that restrict the borrowing capacity of mature borrowers?

If you’re over the age of 40, the lender may shorten your loan term so that your home loan is repaid before the standard retirement age of 65.

For those over the age of 50, there is no hard and fast rule so read on to find out more.

We may be able to help you get approved.
Talk to our home loan experts and get a free assessment.

How to get a home loan over 50 years of age

The secret to getting your home loan approved is to apply with a lender that has flexible policies.

Following these three golden tips if you’re 50 years or older:

  • You must have a defined exit strategy (see below – exit strategy).
  • You must repay the loan prior to retirement (see below – retirement rule).
  • You should apply with a lender that understands and accepts mature age borrowers.

Do you need help with your loan approval?

Please call us on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will contact you to discuss your situation.


How can you get your home loan approved?

Did you know some of our banks will allow you to borrow even if you’re over 50 yrs old?

If you can demonstrate an ability to repay the loan before you’re 75 years old, they will consider your application no matter your age!

For example, if you needed to borrow $300,000 and were 50 years old, the standard 30-year mortgage term could be reduced to 25 years and your loan would be approved.

Please call us on 1300 889 743 or complete our free assessment form and one of our mortgage brokers will assist you in applying for a mortgage.


Applying for a home loan over the age of 65

If you’re still earning an income from shares, a business, rent or if you’re still working, you may be able to get approved.

However, we’ll need to show the lender that your income is ongoing.

If you’re still working, we may need to prove that you can continue to work until the home loan is repaid.

If you’ve already retired and have no ongoing income, you may be able to apply for seniors equity release.

This type of loan is designed for elderly borrowers who have significant equity in their home.

No repayments are required and the interest capitalises until the property is sold.

Because there’s no requirement to repay, you don’t need to comply with the retirement age policy or prove your income.

Please call us on 1300 889 743 or fill in our free assessment form and one of our mortgage brokers will help you apply for a loan today!


Retirement age rules

Different banks have different policies for borrowers that are nearing the age of retirement:

  • 35 years old: Lenders will consider your profession and likely retirement age and they may shorten your loan term.
  • 45 years old: You may be required to show superannuation statements or demonstrate that you have an exit strategy in place to repay the loan when you retire.
  • 50 years old: Most lenders will allow you to borrow but some may decline your application due to your age.
  • 55 years old: 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.
  • 60 years old: Most banks are likely to decline your application due to your age. 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.
  • 65 / 75 / 80 years old: You’ll only be able to borrow money with either a seniors equity loan (reverse mortgage) or with a standard loan, if you can prove an ongoing post-retirement income.

Please call us on 1300 889 743 or complete our free assessment form and one of our mortgage brokers will tell you if your age will stop you from borrowing.

More often than not, we can find a lender that will accept your situation just by building a strong case with good evidence.


Bank policies for older borrowers

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

If the loan term extends past your likely retirement age, then the bank has not met their responsible lending obligations under the National Consumer Credit Protection Act (NCCP).

However, the NCCP Act is open to interpretation!

For this reason, each bank has their own requirements and rules for older borrowers.

Many of the common policies include:

  • If your owner occupied property (home) is the sole security for the mortgage, you must provide a written exit strategy.
  • Downsizing to a smaller home is not an exit strategy that is accepted by most lenders.
  • If no exit strategy is provided then the loan term must not exceed the expected age of retirement.
  • The accepted retirement age varies between lenders, from 65 to 75 years of age.
  • Many lenders will not approve a loan for someone over a particular age, particularly if you’re over the age of 60.

Your mortgage exit strategy

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 reach retirement (not accepted by all lenders).
  • The sale of assets such as an investment property or shares.
  • Lump sum repayments from superannuation.
  • Ongoing income from superannuation.

Check out the exit strategy page for an investment exit strategy example.


Retirement age and property in Australia

A January 2017 survey by Roy Morgan found that the average of Australians intending to retire is 61 years, up from 58 in January 2014.

Much of this has been driven by changes to pension eligibility and superannuation rules.

In a time of high cost of living and economic uncertainty, many Australians are forced to work longer.

This is despite the fact that the average gross wealth of those intending to retirement in the next 12 months at $286,000, up from $276,000 in 2014.

These figures includes superannuation but exclude equity in an owner-occupied property.

Most interestingly, superannuation accounts for around 62.9% of gross wealth, up from 57.6%.

The great news if you own an owner-occupied property is that they tend to hold much more value compared to retirement savings.

In addition, equity from your home doesn’t impact the age pension asset test.

The strength of the Australian real estate market is helping to fund retirement!


Contact a specialist mortgage broker

Do you need help with your mortgage?

We specialise in helping people over the age of 50 get approval for a home loan.

Please contact us on 1300 889 743 or fill in our free assessment form today.

  • rivery

    I am 54 and I looking to buy my first property soonish. I can pay out for the home loan with my super but haven’t got deposit as I find it hard to save one.

  • Hi rivery,
    You could get a home loan despite your age with a few lenders, however you should have some deposit of your own, at least 5-10% of the purchase price. Also, an acceptable exit strategy should be provided at the time of approval that details how you have the capacity or ability to make your mortgage repayments and pay down the line by the end of the term and you completely retire. We specialise in helping people over the age of 50 get approval for a home loan. Please contact us on 1300 889 743 today.

  • nathan

    I want to move to a 2-bedroom house in Knoxfield. I am planning to release equity from my current house worth $350,500. I also have a deposit of $125,000 to the purchase the new property. The house I want to buy is advertised at $750,000 on a real estate website. I am 50-year old project manager at V/Line Pty. Ltd. and earn $116,714 yearly. For the purchase of the property, I am looking to take out a $300,000 mortgage.
    I am approaching retirement and I want to know how I can take out a mortgage for the new house?

  • Hello nathan.
    There are ways of getting a home loan approved at 50 and beyond but the secret really lies in applying with a lender with flexible lending policies. If you can demonstrate an ability to repay the loan before your retirement, specialist lenders can consider your application. Also, we recommend that you consider the following golden tips:
    Have a defined exit strategy.
    Provide evidence stating your ability to make repayments before retirement such as being able to maintain your current income in your current role
    Apply with a lender that understands and accepts mature borrowers.

  • Jake27

    I’m in my mid-forties and am planning to buy a property. I was just wondering can you be too old to get a mortgage? Is there an age limit to getting a home loan?

  • Hi Jake,
    It’s not as simple as saying a particular age is too old. It’s more a matter of being too old and not having other assets that you can sell to pay off your mortgage when you retire. You may be required to show superannuation statements or demonstrate that you have an exit strategy in place to repay the loan when you retire.

  • Lucy

    I Am Mrs Lucy, I give out affordable loan at 3% interest rate. contact us at: lucypaulloaninvestment01@gmail.com with Your Full Name, Amount Needed, Loan Duration, Country, Mobile No.SENT VIA EMAIL US: lucypaulloaninvestment01@gmail.com

  • Penkins

    I’m 48 years old and I’m planning to buy a property of my own. I’m single and, up until recently, my job required me to travel a lot so I never felt the need to own a property of my own. On top of that, my company was paying my rent as part of a salary sacrifice scheme. However, in the past year, I was promoted to work at our Melbourne HQ and they cut salary sacrificing because I wanted a higher income. Now it makes sense to buy rather than rent since I’m on a higher income, in one place for work and no longer receiving rental allowance as part of my salary package. I’ve saved $100,000 as deposit and I’m looking for a property around $600,000. Does my age affect the home loan?

  • Hi Penkins,
    Some lenders will consider your home loan application. There are lenders who restrict the lending once they’re over 40 years old and may shorten your loan term so that your home loan is repaid before the standard retirement age of 65. In your case, you may be required to show superannuation statements or demonstrate that you have an exit strategy in place to repay the loan when you retire. An exit strategy is a backup mortgage repayment plan that you should discuss with your financial adviser. We cannot assist you as a mortgage broker however, we can give you a pretty good idea if the exit strategy will be acceptable to the bank, Lender choice is crucial to getting approved! Call us on 1300 889 743 and we can help you find a lender that will accept your situation.

  • Narelle

    Hi, My mum is 74 years old, owns here own property valued @ $800k with a share portfolio large of $700k providing her with an income of just under $40k.

    Mum is looking to purchase a small apartment approx $600k and rent out for approx 5 years, using this income to pay her loan prior to selling her own home and moving in for herself.

    She would be able to release $300k from her share portfolio to go towards the initial purchase price and would pay the remaining $300k off when she sells her home.

    Is there a lender out there that would be willing to take this on?

  • Hi Narelle,
    Firstly, we would recommend that your Mum discuss this exit strategy with her accountant.
    The low Loan to Value Ratio (around 50% of the property value she is borrowing, from you’re saying) will strengthen her case.
    There are also some lenders that will accept income from shares as long as it is regular and ongoing. You generally need to provide your last 3- 6 months bank statements showing regular income from shares.
    In regards to your last question, lender choice is key because lenders are wary about lending to borrowers past retirement age, despite your Mum’s asset and income position.
    Give us a call on 1300 889 743 or fill in our online enquiry form and we can help your Mum build a strong application with the right lender: http://www.homeloanexperts.com.au/free-quote/l

  • Daniel

    Hi,
    My wife and I are both New Zealand citizens and we will be moving to Melbourne in four weeks time. We have 200k AUD ready for a deposit. As we’re both in our early 50s, will we have trouble getting approved for a mortgage?

  • Hi Daniel,
    Lenders would want to see a contract of employment before approving a mortgage. There is no specific age restriction however, lenders may want an exit strategy. You can learn more about exit strategy here: https://www.homeloanexperts.com.au/home-loan-articles/exit-strategy-in-mortgages/ So, once you start employment in Australia, and have at least 2 payslips you should be able to secure a mortgage.