Refinancing in early 70s

Discussion in 'Loans & Mortgage Brokers' started by Michael48, 9th Feb, 2020.

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  1. Michael48

    Michael48 New Member

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    9th Feb, 2020
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    NSW
    How hard is it to refinance when retired with good indexed retirement income and aged over 70? - our PPOR home loan has been reset with the same lender several times over the last 25 years - last reset at $300k in 2015 for 27 years with first 5 years interest only, now moving to P&I but 4.09% interest rate seems well above market and lender not prepared to move much at all, especially on further IO period. LVR less than 20%. Perhaps lender is counting on inertia or knows that at our age we will have trouble getting a new loan especially in post Hayne environment. The lender may also have noted our large offset balance which reduces their profitability (although the offset balance may soon be depleted by advances to offspring!). Advice welcome on how much leverage if any we have and how to exercise it.
     
  2. sumterrence

    sumterrence Well-Known Member

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    If you have a strong annuity income I believe it might be possible for a P&I refinance. If you are after interest only will be very difficult.
     
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    My oldest client with a 30 yr loan term was an 84 yr old fella.

    Different A&L than the OP though.

    A lot depends on what good indexed income means relative to expenses.

    An obvious but not cheap last line of defence option may be a reverse mortgage

    ta
    rolf
     
  4. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    With owner occ as security they wont be overly keen but if ongoing income is sufficient to service and verifiable (to their policy) then I cant see why not. IO might be a bridge too far.