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 going through a divorce, a failed business venture, lost employment or other unforeseen circumstances. Therefore, their ability to borrow money in the new financial climate is scrutinised.
Whilst ‘age’ should not be an OBSTACLE, some lenders do consider the borrower’s age an impediment to paying out the loan on or before retirement.
The main questions that need to be asked by mature aged borrowers 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 the usual income streams?
- What is the borrower’s superannuation holding at the time of retirement? The point to note is that funds in Superannuation should not be a main contributor for clearing a home loan. They are for financing an ongoing retirement lifestyle, not as funds for paying out a loans.
- Are there any additional funds to be received during the term of the loan? These funds may come from an inheritance, an overseas super nest egg or a property that could be sold and funds realised.
Flakus & Associates has extensive experience and a proven track record to help mature age borrowers.
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