Key takeaways
- There is no maximum age for a home loan in Australia, and a lender can't decline you just because of your age.
- For a loan that runs past your likely retirement, lenders need an 'exit strategy' - a credible plan for repaying the loan once you decide to stop working. Superannuation, downsizing and the sale of other assets are the common ones.
- 30-year terms in your 50's and 60's are common - and often the smarter structure, because a lower minimum repayment gives you flexibility while you pay the loan down faster by choice.
- Lender policies for older borrowers vary significantly, so which lender you approach matters as much as your circumstances.
Clients over 50 often assume that taking out a 30-year loan is simply going to be out of the question. They ask almost apologetically "I'm too old for this, surely I can't get a 30-year loan at my age can I?" Their concern is real, and it stops some people from even picking up the phone in the first place. But the answer is not necessarily what they expect. I regularly arrange 30-year loans for clients in their 50's and 60's, and the rules are far more encouraging than most people assume. Here's how it actually works.
Can a lender knock me back just because of my age?
Age discrimination laws mean a lender can't look at your date of birth and simply say no - there is no maximum age for a home loan in Australia. But there's a nuance worth understanding: 'responsible lending' rules require every lender to be satisfied you can repay a loan without hardship, and for a loan whose term runs past your likely retirement, your age becomes a legitimate part of that assessment. So lenders aren't allowed to write you off for being 58 - but they are required to ask a sensible question: how does the loan get repaid once you decide to stop working? The answer to that question is often the key.
The 'exit strategy' is all important
An 'exit strategy' is simply the answer to one question: if this loan runs beyond your working life, how will it be repaid or serviced from that point on? It does not mean the loan has to be cleared by the day you stop working. It means the lender can see a realistic path, whether that is paying the loan out or continuing the repayments from other sources. The common strategies include superannuation (- a lump sum at retirement, or ongoing income from it), downsizing (- selling the home later and moving to something smaller), the sale of other assets such as an investment property or shares, and continued income for those who plan to work past the traditional retirement age. Often the strategy is a combination of these supported by evidence of income or an asset position that can plausibly extinguish the debt.
So can I really get a 30-year loan in my fifties?
Yes. A recent example: a couple in their early fifties came to me about their next move and asked almost sheepishly whether their ages would be a problem - they'd assumed they would be limited to a short loan term, if they could borrow at all. The outcome was a 30-year loan, approved without drama, with an exit strategy built around their superannuation and the equity in their property. Their ages were a factor that required consideration, but with an appropriate strategy having been provided, they presented no barrier to approval.
Why a 30-year term can actually be the smart move at 55
A longer term means a lower minimum repayment and less income required in order to qualify. Nothing stops you from repaying the loan in less time, and additional repayments and effective use of an offset account may help you clear a 30-year loan in half the time or less if that's your goal. Conversely a shorter term does the opposite - it locks you into higher compulsory repayments at precisely the stage of life when flexibility might matter most. Far preferable for a client to take a 30-year term and pay it off faster by choice than to be held to higher minimum repayment amounts that may limit other life choices.
What if I'm already retired?
Harder, but not automatically a "no." Lenders can factor ongoing income from superannuation, investments and rental property as part of their assessment, and some have specific policies for retired borrowers. This is genuinely specialist territory so exactly the kind of conversation worth having in advance.
Where to start
If age is the thing that's been holding you back, the conversation costs nothing and the most common outcome is relief. With a panel of over 80 lenders, I know which ones treat older borrowers well, what an acceptable exit strategy looks like, and how to structure the term so it works for you and your plans rather than against them. And if downsizing is part of that plan, it may be a good idea to read my guide to buying your next home before you've sold your current one - the two conversations often go together. Book a chat and we'll work through it. My service is free.
Frequently asked questions
Is there a maximum age for a home loan in Australia?
No. There is no legal maximum age, and lenders can't decline you just because of your age. What they assess is your ability to repay - which for older borrowers usually means showing a credible 'exit strategy' for the years after you decide to stop working.
Do I have to repay the loan before I retire?
No. The loan term can run well past your retirement age, as long as there's a realistic plan for repayment - superannuation, downsizing, the sale of other assets, or continued income. The loan doesn't need to be finished by retirement day; the plan just needs to hold together.
What counts as an acceptable exit strategy?
The common ones are your superannuation (- as a lump sum or continuing income), downsizing to a smaller property, selling an investment property or shares, and income from work you plan to continue. Lenders look for realism - a strategy that plausibly covers the remaining debt, not an optimistic guess.
Will my superannuation count towards my application?
Yes - it's the backbone of most exit strategies. Your balance, your ongoing contributions and your projected position at retirement all help demonstrate how the loan gets repaid down the track.
I'm already retired - can I still get a home loan?
Sometimes, yes. Lenders can count income from superannuation, investments and rental property, and policies for retired borrowers vary significantly between lenders. It's specialist territory, so have the conversation before making plans rather than after.
