Loan Tip: Loan Applications and Retirement Plans

Discussion in 'Loans & Mortgage Brokers' started by Terry_w, 16th Jan, 2022.

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  1. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    When applying for loans lenders will want to avoid lending to people who they think might struggle in repayment of their loans. They often ask for the loan applicants planned retirement age. A 30-year-old aiming to retire at 40 might be a good thing to aim for, but it can adversely affect the ability to borrow money.

    The lender will be thinking that the applicant will only work for 10 more years and therefore will only be able to repay the loan until this point. If they stop working, how will they afford to make repayments?

    Keep this in mind when applying for loans.
     
    Terry_w, 16th Jan, 2022
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  2. jaybean

    jaybean Well-Known Member

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    I always go through my broker so I've never seen this question. He probably just assumes I'll work till the very end. Good to know though thank you.
     
    jaybean, 16th Jan, 2022
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    it’s a requirement for the broker to ask this question
     
    Terry_w, 16th Jan, 2022
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