Time to read : 4 Minutes
If you’re approaching 50, or have already hit 50+ and you’re eyeing off the property market, you might be wondering: am I too old for a home loan?
Spoiler alert: legally, no. Practically? It depends – mostly on your finances, your paperwork, and your exit strategy (more on that shortly).
As a former mortgage broker, I’m going to share what you can expect from a lender when applying for a home loan as an older Australian. So, if you’re someone with a touch of salt and pepper, own an impressive collection of cookbooks, or have a penchant for crosswords, read on.
Can older borrowers even get a mortgage?
Yes – there’s no official age cap. Lenders can’t decline your application just because you’re over 50. In fact, Australian legislation forbids age discrimination when it comes to lending.
However, banks will assess your ability to repay the loan and whether it’s financially responsible to give you 30 years of debt when you’re, say, 62.
This is where something called an “exit strategy” comes in.
What’s an ‘Exit Strategy’ and why do you need one?
An exit strategy is your plan for how you’ll pay off your new loan – especially if the term takes you past retirement. Lenders want to know that you’re not going to be stuck trying to make mortgage repayments on a pension-sized income. Acceptable strategies include:
Downsizing after retirement.
Selling an investment property or other assets.
Using superannuation (as income or a lump sum).
A combination of the above.
Unacceptable strategies? Anything you might receive, like inheritance, a divorce settlement, or a surprise bonus at work. Hopes and dreams are not legal tender. (Neither, by the way, are vintage collections of any kind, except cars).
How does your age affect your home loan application?
Here’s a rough guide to how lenders view applicants by age:
35-45: You’re still considered youthful in mortgage years. Lenders may start asking questions about retirement age but are usually relaxed about it.
50-55: You’ll likely need to provide super statements and a clear repayment plan.
60 plus: Here’s where you can expect scrutiny. Lenders will want a strong, documented exit strategy and proof of post-retirement income or assets.
Be aware: if you're applying as a couple, the lender may assess the application using the age of the older partner because romance aside, risk assessment reigns.
4 mortgage options for older borrowers
If you're no spring chicken but still want a home loan, here are some potential paths:
1. Bridging loans
Great for downsizers. These short-term loans help you buy your next property before you’ve sold your current one. They’re usually easier to access for older borrowers and are settled once your home sells. Downsides? High interest rates and quite a few fees. Best speak to a knowledgeable mortgage broker.
2. Reverse mortgages
Think of this as borrowing against your own home, without making repayments until you sell, move out, or go to the great real estate auction in the sky. Best for retirees needing cash but not ready to leave their home.
Be aware: interest compounds, and your equity reduces accordingly. You can find out more in our guide on reverse mortgages.
3. Investment loans
If you’re investing rather than buying a home to live in, lenders are often more relaxed. Why? Because you can sell the property later without ending up homeless. Still, they’ll expect solid rental income or asset backing. They may also require a look at your superannuation statements.
4. Standard loans with an exit strategy
If you want to buy an owner-occupied home, your best shot is showing a rock-solid plan for paying it off. That might mean choosing a shorter loan term, borrowing less, or proving ongoing income well into your golden years. You’ll definitely need to show your lender your super.
Let’s look at a few examples:
Len Da Lott, aged 55, is a self-employed bookkeeper with $1 million in super and an investment property worth $650,000. He wants an $800,000 home loan and plans to sell the investment property and use super to pay it off in 10 years. Lenders will likely give him the green light.
Loana Nunn, also 55, has only $200,000 in super and no other assets. She’s expecting an inheritance and a divorce settlement to help pay off a $650,000 home loan. Her plan is, shall we say, optimistic. Most lenders will politely decline, unless one of her adult children is able to act as guarantor. That could shift the numbers in her favour. Learn more about guarantor loans.
Tips for boosting your approval chances
Offer a strong exit strategy, ideally backed by tangible assets.
Go for a shorter loan term: Yes, your repayments will be higher, but you’ll be debt-free faster.
Borrow less, because your larger deposit means a smaller risk for the lender.
Find the right lender: Some lenders are more mature-age friendly than others. A mortgage broker can help steer you to the right one.
So… how old is too old?
Technically, never. Realistically? If you’re over 55 and wanting a 30-year loan with no savings, you might be pushing it. But with the right financials and forward planning, even retirees can get a mortgage. Check out our home loans guide for seniors.
💡 Lenders aren’t being ageist… they’re being cautious. Their job is to make sure you can repay your home loan and still afford the occasional coffee and crossword in retirement.
Bottom line
Age is just a number. What matters more is your exit strategy, your financial health, and how convincingly you can say, “I’ve got this.”
Want help comparing lenders who are friendly to older borrowers? A mortgage broker or online comparison tool might just become your new best friend.
Go deeper:
Financial disclaimer
The information contained on this web page is of general nature only and has been prepared without taking into consideration your objectives, needs and financial situation. You should check with a financial professional before making any decisions. Any opinions expressed within an article are those of the author and do not specifically reflect the views of Compare Club Australia Pty Ltd.
