Whether it’s riding a rollercoaster or dancing all night in a nightclub, there are often certain things that become harder as we get older.
Fortunately buying a house is not one of those things. Conversely many of us actually find we are more inclined to buy a property as we get older due to increased savings.
A question we frequently get asked through Ask Aussie is “Am I too old to purchase a property?”
Many house hunters are concerned that lenders will not look at them favourably if they have passed a certain age.
While there are rules around lending to people of different ages, the reality is that age will not prevent you from taking out a home loan. All lending applications are assessed on their merits and age alone would not disqualify you from applying for a loan.
But it is important to be aware of instances where you may be knocked back. For many lenders, if you are 60 years old and after a 30 year loan, your chances of getting approved will be slim. You will need to be able to prove you can pay the full amount back.
However many banks and lenders actually offer what is referred to as a ‘reverse mortgage’. They are generally intended for seniors of retirement age and are offered by a limited number of lenders.
A reverse mortgage is a form of equity release, whereby you borrow money against the equity you have in the value of a property you already own while you continue to live in it.
You don’t normally have any scheduled repayments, but the loan amount is payable when either the property is sold, you no longer live in the home, or if you pass away.
All Aussie Brokers have a good understanding of reverse mortgages and are able to find out which lenders currently offer a suitable reverse mortgage product.