With the recent ongoing appetite for purchasing property, older potential borrowers will be facing new hurdles.
Some older age group borrowers re-enter the property market after they have been through a divorce, having had a failed business venture, lost employment or other unforeseen circumstance. Therefore, their ability to borrow money in a new financial climate may be questioned. Whilst ‘age’ should not be regarded as an OBSTACLE, some lenders do consider age to be an impediment to paying out the loan on or before retirement.
The main questions that need to be explored by older and mature aged borrowers seeking a loan include :-
- What equity in being injected into the purchase?
- What is the Borrower’s clear exit strategy on or before retirement. Can the borrower pay out the loan from usual income streams?
- What is the borrowers superannuation holding at the time of retirement? The point to note is that funds in super should not be the main contributor for to clear a home loan. Funds in super are meant to maintain an ongoing retirement lifestyle, not for paying out a home loan.
- Are there any additional funds to be received during the term of the loan? It might be an inheritance, an overseas super nest egg, or a property that could be sold.
If you feel age is an impediment to obtaining a loan for you, contact Paul today.
Tags: home loan