Home News How to get a mortgage for older Australians

How to get a mortgage for older Australians

Font size :

It may not be a common occurrence, but a person in his 50s or 60s can still get a home loan. According to the Australia Bureau of Statistics, the proportion of Australians aged 65 and over increased from 11.8 per cent to 14.7 per cent of the population from 1994 to 2014. This means that there is a growing group of “seniors” or “elderly” with financial needs, such as mortgages.

Age does not decide loan eligibility, as it is against the law to discriminate on the basis of age. What is calculated by lenders is a person’s capacity to repay the home loan--also known as loan servicing.

Loan servicing involves three main determinants for people aged 50 and above. The first one is a person’s income earning potential, as lenders are obliged to ensure that the borrower’s income and employment will continue for the duration of the proposed loan term. In turn, this will ensure that the borrower can meet the repayments both in the short and long term without undue hardship.

Another factor is the loan term, as elderly people may not be granted the standard 30-year loan term that younger people are given. The last determinant is the presence of other assets since lenders are more flexible with mortgages for older Australians who own assets of value. These include properties, businesses, shares, or a super large balance. These assets will ensure that the mortgage will be covered even if the borrower stops working or earning.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Choosing the right mortgage is hard for many first-home buyers Choosing the right mortgage is hard for many first-home buyers

Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates ... Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

More mortgage news and articles

Sponsored Links

Monday, Jul 24, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords