With the recent and ongoing demand for purchasing property, older potential borrowers may be facing new hurdles and challenges.

Some older age group borrowers may seek to re-enter the property market after they have been through a divorce, had a failed business venture, lost employment or other adverse circumstances. This may impact their ability to borrow money as the new and more stringent criteria in the new financial climate is applied.

Whilst ‘age’ should not be regarded as an OBSTACLE, some lenders do consider age as be an impediment in paying out the loan on or before retirement.

The main questions that would need to be explored by older and mature-age borrowers seeking a loan include :-

  1. What equity in being injected into the purchase?
  2. What is the Borrower’s clear exit strategy on or before retirement? Can the borrower pay out the loan from his/her projected income streams?
  3. What is the Borrower’s superannuation holding at the time of retirement? The point to note is that funds in super should not be used as the main contributor to service a home loan. Funds in Super are aimed to support an ongoing retirement lifestyle, not for paying out a home loan.
  4. Are there any additional funds to be received during the term of the loan? This might include an inheritance, an overseas-based super nest egg or a property that could be sold.

If you need guidance to secure a residential or investment loan as a mature age borrower, please talk to us today to find out what you options are.


Tags: ,