June 20, 2018 by Leonard Marquart
Lending for mature age clients is definitely possible. I can help you find a loan that suits your needs, regardless of how old you are.
Generally speaking, lenders do view mature aged mortgage applicants as higher risk borrowers so they have stricter lending requirements.
Knowing what these requirements are is important before you apply for a mortgage. The top things lenders consider for mature age customers are:
- Your current financial position and ability to maintain a loan.
- Minimising the time you are in debt by way of a shorter loan term.
- If you are close to retirement, the lender will want to know how you are going to support yourself.
- The lender may also like to see an exit strategy that outlines how you will pay off the loan or prove you can service the loan during retirement.
The most important thing for you to work out is what your income streams will be when you retire and whether that will allow you to pay off a home loan. Some examples of income may include: your superannuation; revenue from a diversified share portfolio and other assets. Whatever the income is, ensure it’s sustainable and consistent in order to prove you can continue to service the loan in retirement.
Loan Purpose
There are many reasons why you may want to apply for a home loan later in life, and lenders will take this into consideration. A few common reasons are:
- Renovations or upgrades: In order to do so, you may need to add to your home loan or take out a new one.
- Debt consolidation: Refinancing allows you to consolidate debts such as car loans, credit cards or personal loans, which could save you money.
- Life changes: Has your family situation changed?A change in circumstances is a common reason to take out a new loan.
Your age should not be a deterrent to applying for a home loan. I can help take the stress out of the process by exploring your options and finding the right product for your financial situation. Please contact me on 0420544268 or leonard.marquart@mortgagechoice.com.au for more information.
