Can You Get a Home Loan Over 50 in Australia?
Yes — age is not a legal barrier to obtaining a home loan in Australia. The National Consumer Credit Protection Act (NCCP) prohibits lenders from discriminating based on age. However, lenders do need to assess your ability to repay the loan — and for borrowers over 50, this involves an additional requirement: demonstrating a credible exit strategy.
An exit strategy answers the question: "How will this loan be repaid when you retire?" Common acceptable exit strategies include:
- Selling the property and downsizing
- Drawing down superannuation upon retirement
- Selling an investment property or other asset
- Receiving an inheritance or expected windfall
- Continuing to work beyond standard retirement age
The strength of your exit strategy — supported by evidence — determines which lenders will approve your application and on what terms.
The Exit Strategy Requirement Explained
If you are 55 and applying for a 30-year P&I home loan, you will be 85 at maturity. Lenders need to understand how the loan gets repaid if you retire at 67. This is the exit strategy requirement.
What lenders want to see varies:
| Exit Strategy | Supporting Evidence | Lender Appetite |
|---|---|---|
| Sell the property | Statement of intent, property equity projections | ✅ Most lenders accept |
| Superannuation | Super balance statement, contribution projections | ✅ Most lenders accept |
| Investment property sale | Investment property statement, equity position | ✅ Widely accepted |
| Inheritance | Copies of will or estate documents | ⚠️ Some lenders, case-by-case |
| Continue working | Industry demand evidence, professional registration | ⚠️ Age-dependent |
Superannuation as a Repayment Vehicle
For many borrowers over 50, superannuation is the most compelling exit strategy. If you have a strong super balance that will clearly cover the loan by retirement, lenders — particularly non-bank and second-tier lenders — are often very comfortable lending.
For example: a 58-year-old borrowing $600,000 with a $350,000 super balance growing at 7% p.a. will have approximately $700,000+ at age 67. This comfortably covers the loan — and a lender can see this with a simple super projection.
Check your super balance at myGov. Your mortgage broker can build a super projection to include with the application.
Loan Structures That Work Well for Over-50 Borrowers
- Shorter loan terms: A 15 or 20-year loan term may be more appropriate than 30 years — and results in lower total interest paid. Repayments will be higher, but the loan aligns with your working life.
- Interest-only period: An IO period reduces repayments during the period before retirement, after which the property can be sold or super drawn down to repay the principal.
- Offset account: Keeping superannuation accessible savings or investment proceeds in an offset account minimises interest while keeping the funds available as the exit strategy.
- Split loan: Part fixed (certainty in retirement transition) and part variable (flexibility to make extra repayments while still working).
Our Mortgage Repayment Calculator can model different loan terms to compare repayments at various term lengths.
Which Lenders Are Best for Borrowers Over 50?
Lender policies on mature-age borrowers vary considerably:
- Non-bank lenders (Pepper Money, Liberty, La Trobe): Generally more flexible on exit strategy assessment and documentation requirements. They take a holistic view of the borrower's situation rather than relying on rigid retirement age assumptions.
- Second-tier banks (Bank of Queensland, Bankwest, Suncorp): More case-by-case assessment compared to the Big Four.
- Major banks: Have standardised processes that can make over-50 applications more complex. However, with the right documentation and broker presentation, approval is achievable.
A broker experienced in mature-age lending will identify the right lender for your situation and present the exit strategy in the most compelling way. Additional resources for mature-age borrowers at Home Loans Hub.
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📅 Book a Free Call Get in Touch →Frequently Asked Questions
Yes, but lenders will require a credible exit strategy for how the loan will be repaid when you retire. A super balance projection showing sufficient funds at retirement age, plus strong current income, gives you a good chance of approval with a 30-year term. Some lenders prefer a shorter term aligned to your expected working life.
Lenders are prohibited from discriminating based on age under the NCCP and Age Discrimination Act 2004. However, lenders must assess creditworthiness including ability to repay — which legitimately involves asking how the loan will be serviced after retirement. An exit strategy requirement is legal and standard practice.
The strongest exit strategies are: a solid superannuation balance that will cover the loan by retirement (with a projection), an investment property that will be sold to repay the loan, or documented plans to sell and downsize. Selling the property itself is also widely accepted. Your broker can help you structure and present your exit strategy effectively.
Yes. From age 60 (or preservation age), you can access superannuation to repay debts, including home loans. Lenders view a strong super balance as a legitimate exit strategy. Most lenders require a copy of your super statement as part of the documentation.
In some cases, yes. An IO loan reduces monthly repayments while you are still working, preserving cash flow. At retirement or when you sell, the principal is repaid in full. IO works best when paired with a clear asset exit strategy (property sale or super drawdown). It is not recommended for borrowers who plan to stay in the property indefinitely without a clear repayment plan.