If you’re worried that you might have left it too late to apply for a mortgage, the good news is that being older does not necessarily mean you won’t be able to get a loan. Tracy Kearey, Managing Director of Mortgage Advice Bureau, Brisbane explains.

There are various reasons why you might need to apply for a mortgage after the age of fifty-five.

You could be purchasing a property following a divorce, buying your first home, refinancing to get a better interest rate, releasing equity to do home improvements, or looking to help your children get onto the property ladder.

Sure, in the past most lenders required mortgages to be paid out by a borrower’s 65th birthday, but with people living and working longer, it is becoming more common for people to carry debt forward into retirement.

With property prices rising and the length of time to save a deposit increasing the need for borrowing into retirement doesn’t just apply to the fifty-five and older age group.

Consider a forty something-year-old borrower taking on a 30-year loan, just like over fifty-five-year olds, their mortgage term takes them well into their sixties, seventies or even their eighties.

The good news is that lenders are adapting mortgage options to better suit people’s lifestyles, which means a loan term that last beyond retirement is possible.

Is there a maximum age limits for mortgages?

In Australia there is no maximum age for a home loan. Legislation from the Federal Government such as the Age discrimination Act prevents lenders from discriminating against potential borrowers because of their age.

However, whilst not allowed to discriminate on age, all lenders must comply with Responsible Lending Laws.

This means a lender must ensure that every home loan application they approve makes sense and does not place a borrower or borrowers into any financial difficulty.

Do I have to be working throughout the mortgage term?

As well as your age at the end of the mortgage term, lenders need to be confident you will be able to afford a loan.

Regardless of there being no maximum age for taking out a home loan, a lender needs to assess your ability to make repayments and have a clear understanding of your exit strategy if the term of your loan extends beyond retirement age.

Keep in mind that age is just one factor that lenders consider. You’ll need to provide information on your income, outgoings, current loans and existing investments to get an accurate assessment on what your borrowing capacity is.

Having a mortgage that extends beyond retirement age isn’t an issue if you can show that you will have adequate and reliable income from other investments such as property, shares, superannuation and savings that can be called on to either pay out or keep paying off your mortgage when you retire from the workforce.

One of the most important things to remember is to ensure that your credit score is tip top condition. Why? Because all lenders examine a borrower’s credit score when deciding on whether to lend to them.

How to find out if you’re too old to secure a mortgage

The easiest way to find out if you’ll be able to get a mortgage is to speak with a mortgage broker.

Generally speaking, the older you are, the fewer lenders there are providing mortgage options. However, a  mortgage broker has access to a wide range of lenders which means they will have knowledge and expertise on all the lenders specialising mortgage loans to older borrowers.

The right mortgage broker will be able assess the loan market for you and provide mortgage options that meet your individual financial situation.


If you need assistance applying for a loan or would like to discuss any aspect of borrowing please give me a call on 0417 738 469.

Tracy Kearey is an award winning Finance and Mortgage Broker with 23 years experience. She has access to over 40+ lenders and offers her clients access to extensive range of loan products and services tailored to individual borrowing needs. If you need assistance with your lending needs you can send Tracy an email or give her a call on M: 0417 738 469. You might also like to connect with Tracy on Facebook

General Advice Warning: This blog is not designed to replace professional advice. It has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the advice, in light of your own objectives, financial situation or needs before making any decision as to what is appropriate for you.