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Home Loans at 60+

Discussion in 'Property Finance' started by C-mac, 20th Jul, 2015.

  1. C-mac

    C-mac Well-Known Member

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    26th Jun, 2015
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    Sydney
    Though I am only half way to 60 myself, I am, together with my siblings, working on a project to help my mother buy a house for herself (she is 60 in September).

    Just found out that the age cutoff for mortgages from big-4 banks for mortgages is 75, meaning that whilst they'd give mum a mortgage at 60, it cannot go beyond her age of 75, meaning a 15-year mortgage not a 30-year one. This effectively doubles the repayments which is difficult at her age. Whilst it's strategically smart for her to spend her last 5 or so 'workforce' years paying it down, the inflexibility of a big-4 loan is difficult to navigate.

    I'm told there are lenders who will do 30-year loans for 60-65yo applicants. Anyone know of any lenders or better yet, had personal experience?
     
    MsAli likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Macquarie are good in this space. Their white label product is also quite competitive.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    the core isnt the age, nor the bank

    Its intepretation of the legislation that regulates borrowers of this type

    if the only exit strategy for the borrower is to sell the PPOR within a 15 year window, most lenders will deem that too high a risk, and class the loan as "unsuitable"

    if there are other assets that can be liquidated etc, or ongoing income proven beyond retireme t age one may be able to work through this.

    Cant blame the banks for this one

    ta

    rolf
     
  4. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Location:
    Sydney
    If the purpose is investment then Westpac has a no age policy so long as the other areas of the application (servicing, LVR, etc) are ok.