At what age does getting finance get harder?

Hi people.

I'm just wondering at what age does getting home loans get harder and would it be easier down as an investment loan at that age- or are there any tricks ?

My dad was still financing places right up until around mid 60's. He owned a business but I do remember those last few yrs prior for the first time ever he began getting knock backs .
Earlier than that though say right through his 50's he was still financing big hobby farms and ventures no problem.

Cheers
 
Jan Somers told an amusing story in one of her books where an elderly couple in their 80's came up to her during the break of one of her early seminars and proudly exclaimed that they had just bought their first investment house, to give them some security later on for when they get old.
 
Under 18 and when they carry you out in a box other than that you cannot discriminite on age.

Of course doesnt mean that you will qualify for the loan either on a pension.
 
SHould not discriminate on age.

But beware that some lenders want to protect a borrower, so while in reality they may stil provide a loan , it may be on reduced time terms, thus 15 years max pi or the like.

My oldest client with a 30 year IO facility was an 84 year old man.

ta

rolf
 
It wlll depend on the overall situation of the borrower

A lender will usually be much more careful if someone has no other assets and has eg 15 or 20 years working life remaining

I recently had a 72 & 65 year old couple with a 30% deposit buying their one and only property offered a 20 year loan, and a 50 year old single woman offered a 20 year loan

Lenders may not be able to 'discriminate' on the basis of age, but they can't act willy nilly, either. If it looks to them as if the borrower will be retiring on the Pension or with limited Superannuation then they must make sure that the overall situation will not result in that person having to sell their home because of financial hardship

On the other hand, I have just had a couple aged 60 and 59 with a considerable established portfolio approved for nearly $3,000,000 all on 30 year loans

Lending is very much an industry where policy is applied on a case by case basis

Cheers
Kristine
 
Yeah well , that's my point exactly Kristine. Discrimination's obviously a dirty word like just about anything else in OZ these days but eh , a 55 yr old asking for a 20 or 25yr mortgage and being knocked back well , they don't have to call that discrimination do they , hardly rocket science , especially with lenders being so fickle right now. A friend of mine is 55 and his been having trouble for no apparent reason , reckons he suspects age b/c his numbers are good.

My wifes 40 and she's just been knocked back 3 times when all the numbers are good. They came back with very careful but ridiculous no sense excuses but I suspect the real reason was b/c she she 2 kids and the property was only in her name rather than both.
That was for strategic and tax reasons but there ya go.
So after that episode and our friend , plus me getting up there myself I've been wondering - handy to know this stuff in advance even if it is only a suspicion , at least you can prepare allowing .

At the end of the day though , really , call it what you like but they can too and still do what they want from what I can see.
But on the other hand It's great to read some of the client lends here that people have dealt , there's some beauties , makes you laugh when you think about it.
Hey I bet that slapped the oldies with every insurance ever invented though none the less .
Is Murdoc 79 - crikey ! You'd reckon he might wanna start enjoying himself and kicking back a little before it's too late wouldn't you.
Still , I spose making lots of mooler is enjoying yourself to someone of that makeup.

Cheers
 
Speaking of cautious , one thing I can't believe if banks are suppose to be cracking down so much, why the hell they go lending fhb 4 and 500k in this environment just b/c they've scored a few bucks from the Rudd.

I mean at those sort of prices how does a handout make a bubble any less likely, it increases their risk factors if anything - I don't get it !
Or were they only lending to them at the lower end ?

Cheers.

Yes I know using the b word will open a can of worms but owell.
 
Is Murdoc 79 - crikey ! You'd reckon he might wanna start enjoying himself and kicking back a little before it's too late wouldn't you.

Rupert has been having a whale of a time since he took over from Keith back in '52.

World conquering winners don't "kick back a little". That's what slack Ozzy workers do.
 
Jan Somers told an amusing story in one of her books where an elderly couple in their 80's came up to her during the break of one of her early seminars and proudly exclaimed that they had just bought their first investment house, to give them some security later on for when they get old.

That's gold.
My Nanna worked in an aged care facility as a carer, looking after what she described as "the oldies".
She was in her 70's.
They forced her to retire as the workers comp insurer wouldn't cover an employee who was older than most of the residents.
 
Rupert has been having a whale of a time since he took over from Keith back in '52.

World conquering winners don't "kick back a little". That's what slack Ozzy workers do.

C'mon MATE! I knock off work at 1:00pm- there's four straight hours in that session - times are changing.....
 
Last edited by a moderator:
I just LOVE Somersoft forums.

Was cruising here just before bed and discovered that at 57 I won't be too old to borrow for a few economic cycles yet.

Goodnight all.
 
Many lenders are cautious of lending to older people. They don't want to be in the position that they have to force the borrower to sell the property when they retire.

In fairness, it looks pretty bad if the bank is kicking a pensioner out of their house, even if the pensioner did default on their mortgage.

Many lenders amatorise the loan to a point where it is either paid off by retirement or it's low enough that the rental income will manage it.
 
I've just hit 60. we settled an IP two mths ago with a 30 yr Mtge.
Supporting financials obviously have a large influence on the lenders decision.

Certainly wont be running the Mtge for 30 yrs, probably more like 4/5 yrs, so we can use the rent to put extra bread and butter on the table.
 
Top