Whilst it can be difficult to receive a home loan as a pensioner due to being considered risky by lenders, it is still possible to get a mortgage despite the challenges involved. If you are on a pension or applying for a home loan at an older age, you may be limited in the amount of funds you can borrow, this is due to a higher risk being associated by lenders when processing the loan application.
Types of home loans for pensioners
Disability pension home loans
It is important to note that in most cases lenders may consider a disability pension to be genuine income and therefore can treat the application similar to getting any other home loan.
As many lenders accept the disability pension as an accepted form of income, it must be verified as part of your home loan application. This can be done by providing bank statements and a letter from the relevant government department confirming your pension benefit payments and frequency amount.
Therefore you can get a home loan on a disability pension, your eligibility will be dependent on the amount of income you receive and expenses you have. To further understand what your borrowing power could be to buy a house with your disability pension you can use our free home loan quick quote to calculate the amount today!