Is there an age limit for getting a home loan in Australia?

No — there is no legal maximum age to get a home loan, and refusing credit on age alone can be age discrimination. ANZ, for example, has no maximum customer age. What changes as you get older is not whether you can borrow but whether you need to show an 'exit strategy' — a credible plan to repay the loan if its term runs past your expected retirement. This stems from the responsible-lending obligations in the National Consumer Credit Protection Act 2009: a lender has to be reasonably satisfied the loan is not unsuitable, and for an older borrower that means understanding how the loan gets repaid once employment income stops. Past roughly 50 to 55, expect the exit-strategy question; it's a requirement to satisfy, not a barrier.

At what age do lenders start asking for an exit strategy?

It varies by lender, which is exactly why the lender choice matters for an older borrower. ANZ requires an exit strategy where the borrower is aged 57 or over, or where they intend to retire within seven years of the application. Connective Essentials (the Advantedge / NAB white label) asks borrowers aged 55 and over to demonstrate around $200,000 of combined equity, superannuation or investments. Other lenders set the trigger at the point where the loan term would extend materially past age 65 or 70. Because the thresholds differ, an application that triggers a heavy exit-strategy review at one lender can be straightforward at another — part of the job is matching the borrower's age and term to the lender whose policy fits.

Which lenders offer the longest loan terms for older borrowers?

A longer term lowers the assessed repayment, which can be the difference between servicing and not — so the lenders that stretch the term matter. uBank offers a 35-year term on owner-occupied purchases under 80% LVR, and is often the only lender that will, which gives a real servicing edge. FirstMac will write a 30-year term to an end-of-term age of 90 (with a valid exit strategy such as downsizing or super), pulling the term back as age rises — a 61-year-old, for instance, might get a 25-year term. ME Bank doesn't discriminate on age and will write a 30-year term for an older borrower with a valid exit. The longer term has to be paired with the exit strategy: the lender is comfortable with the term precisely because there's a credible plan to clear the balance.

Can I get a home loan if I'm retired or on a pension?

It's harder without employment income, but not impossible — it depends on what income and assets you have. Some lenders accept pension and retirement income (including the age pension, and more readily a defined-benefit or account-based pension) for servicing, particularly for smaller loans or where there's a strong asset position. Where servicing on retirement income doesn't work, two other routes exist: a strong asset position with a clear downsizing or asset-sale exit, or — for borrowers aged 60 and over who want to access equity without monthly repayments — a reverse mortgage, where the interest capitalises and the loan is repaid when the home is eventually sold. The right path turns on whether you need to service a normal loan or release equity, and on your age and asset position.

What is a reverse mortgage and who is it for?

A reverse mortgage lets a homeowner aged 60 and over borrow against the equity in their home without making monthly repayments — the interest capitalises (is added to the loan) and the whole loan is repaid when the home is sold, usually when the owner moves into care or passes away. The amount you can borrow rises with age (a common rule of thumb is around 20% of the home's value at age 60, increasing by roughly 1% for each year older). It suits retirees who are asset-rich but income-poor and want to fund retirement, renovations or aged care without selling. The trade-off is that the capitalising interest erodes the equity over time, so it needs careful thought about the estate and future needs. It's a distinct product with its own protections (including a statutory negative-equity guarantee) — we can point you to it where it fits, alongside your financial adviser.

Will I pay a higher interest rate because of my age?

No — age itself isn't a rate loading. An older borrower with a clean file, serviceable income or a strong asset position and a credible exit strategy accesses the same pricing as any other borrower on the same product and loan-to-value ratio. The constraint for older borrowers is rarely the rate; it's satisfying the exit-strategy requirement and finding the lender whose age thresholds and loan term fit. Get those right and the pricing follows the normal rules. A reverse mortgage is the exception — it's a specialist product and prices accordingly — but a standard home loan for an older borrower is priced like any other.

Older borrowers · exit strategy · loan term

Home loans for older borrowers — age isn't the wall, the exit strategy is the question.

Q: What is an exit strategy for a home loan?

An exit strategy is your credible plan to repay or clear the loan if it runs past retirement. Lenders accept several: downsizing (selling the home and buying something smaller, with the difference clearing the loan), superannuation (a lump sum or drawdown sufficient to repay the balance), sale of other assets (an investment property or share portfolio), or ongoing income that continues past retirement (a defined-benefit pension, rental income, or a business that runs without you). The lender wants the exit to be realistic and evidenced — a $400,000 balance to be repaid from $80,000 of super is not a strategy, whereas the same balance against a $1.2M home you intend to downsize, or a $900,000 super balance, is. We document the exit clearly up front so it doesn't become the reason for a decline.

There is no maximum age to get a home loan in Australia, and declining credit on age alone can be discrimination. What changes past about 50 to 55 is that the lender asks for an "exit strategy" — a credible plan to repay the loan if its term runs past retirement. Most older borrowers are perfectly serviceable; the work is documenting the exit and matching the application to the lender whose age thresholds and loan term actually fit.

The short version

No legal age limit — but past ~55 you'll need an exit strategy (downsizing, super, asset sale, or income that continues past retirement). The thresholds differ: ANZ wants one at 57+ (or retirement within 7 years), Connective Essentials wants ~$200K of equity/super at 55+.

A longer term lowers the assessed repayment — uBank writes a 35-year term (often the only one), FirstMac a 30-year term to age 90 with a valid exit. For 60+ wanting equity without repayments, a reverse mortgage is a separate path.

The exit strategy — what it actually is

This is the whole conversation for an older borrower. It comes from responsible lending, not from a maximum age.

Under the National Consumer Credit Protection Act 2009 a lender must be reasonably satisfied a loan is not unsuitable — and for a borrower whose loan term runs past their working life, that means understanding how the loan gets repaid once employment income stops. The accepted exits are: downsizing (sell, buy smaller, the difference clears the loan), superannuation (a lump sum or drawdown big enough to repay the balance), sale of other assets (an investment property, a share portfolio), or ongoing income that continues past retirement (a defined-benefit pension, rental income, a business that runs without you). The test is whether the exit is realistic and evidenced — a large balance against modest super isn't a strategy; the same balance against a high-value home you intend to downsize, or a strong super balance, is. We document it clearly up front so it never becomes the reason for a decline.

The age thresholds differ by lender

Because the trigger age and the loan term vary, the lender choice does a lot of the work for an older borrower. Positions are indicative and confirmed before any application.

Lender	Exit-strategy / age trigger	Loan term edge
uBank	Standard exit-strategy review for older borrowers	35-year term (owner-occ, sub-80% LVR) — often the only lender; real servicing edge
FirstMac	Exit strategy (downsize / super)	30-year term to end-of-term age 90; term pulls back with age (e.g. 61yo → 25 years)
ANZ	Exit strategy required at 57+, or retiring within 7 years	No maximum customer age
Connective Essentials (Advantedge / NAB)	55+ must demonstrate ~$200K combined equity, super or investments	Sharp pricing where the file fits
ME Bank	No age discrimination; valid exit required	30-year term for older borrowers

Retired, on a pension, or asset-rich but income-poor

Without employment income there are still routes — they turn on whether you need to service a normal loan or release equity.

Some lenders accept pension and retirement income for servicing — the age pension, and more readily a defined-benefit or account-based pension — particularly for smaller loans or where the asset position is strong. Where servicing on retirement income doesn't get there, the options are a strong asset position with a clear downsizing or asset-sale exit, or — for borrowers aged 60 and over who want to access equity without monthly repayments — a reverse mortgage, where the interest capitalises and the loan is repaid when the home is eventually sold. The borrowing limit on a reverse mortgage rises with age (a rule of thumb is around 20% of the home's value at 60, plus roughly 1% per year older), and the product carries its own protections including a statutory negative-equity guarantee. We can point you to it where it fits, alongside your financial adviser.

The exit and the term go together

The reason a lender is comfortable with a 30- or 35-year term for an older borrower is precisely that there's a credible exit. The longer term lowers the assessed repayment (helping servicing) and the exit answers the responsible-lending question. Treat them as one decision, not two.

Let's get the exit strategy and the lender right.

Tell us your age, income, super and asset position and what you want to do — we'll document a clean exit strategy, find the lender whose age thresholds and loan term fit, and model the servicing on the longest term you qualify for.

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What this page is, and what it isn't.

This is general information about credit, not personal credit advice, and not financial, superannuation or retirement advice — your super and retirement planning are your financial adviser's domain. A reverse mortgage in particular is a significant decision that should be considered with licensed financial advice. Lender age thresholds, loan terms and the figures above are indicative, vary by file, and are confirmed before any application. Your full situation and requirements are assessed before any loan is recommended or accepted.

Older borrower home loan questions

Is there an age limit for a home loan?

No legal maximum — declining on age alone can be discrimination, and ANZ has no maximum customer age. Past ~50–55 you'll need an exit strategy (how the loan is repaid past retirement) under responsible-lending rules. It's a requirement to satisfy, not a barrier.

What is an exit strategy?

A credible, evidenced plan to clear the loan past retirement: downsizing, superannuation, sale of other assets, or income that continues past retirement. The test is realism — a large balance against modest super isn't one; the same against a high-value home to downsize, or a strong super balance, is.

At what age does the exit strategy kick in?

It varies — ANZ at 57+ (or retiring within 7 years), Connective Essentials at 55+ (needs ~$200K equity/super), others where the term runs materially past 65–70. Because the thresholds differ, matching the file to the right lender matters.

Who offers the longest loan terms?

uBank writes a 35-year term (owner-occ, sub-80%) and is often the only one; FirstMac goes to end-of-term age 90 (term pulls back with age — 61yo ≈ 25 years); ME Bank writes 30 years with a valid exit. A longer term lowers the assessed repayment.

Can I borrow if I'm retired or on a pension?

Harder, but possible — some lenders accept pension/retirement income for servicing (especially smaller loans or a strong asset base); otherwise a downsizing/asset-sale exit, or for 60+ a reverse mortgage that capitalises interest and repays on sale.

What is a reverse mortgage?

For homeowners 60+: borrow against home equity with no monthly repayments; interest capitalises and the loan repays when the home is sold. Limit rises with age (~20% of value at 60, +~1%/year). It erodes equity over time and has a statutory negative-equity guarantee — consider it with financial advice.

Will my age raise the interest rate?

No — age isn't a rate loading. With a clean file, serviceable income or strong assets and a credible exit, you get standard pricing. The constraint is the exit strategy and lender fit, not the rate (a reverse mortgage is the priced-differently exception).

Primary sources

National Consumer Credit Protection Act 2009 — the responsible-lending basis for the exit-strategy requirement.
ASIC — Responsible lending (RG 209) — guidance on assessing older borrowers and exit strategies.
ASIC MoneySmart — Reverse mortgage and home equity release — the negative-equity guarantee and how it works.
Australian Human Rights Commission — Age discrimination — why age alone can't be the reason for refusal.
ASIC MoneySmart — Retirement income — superannuation and pension income context.

Richard Esteb

Licensed mortgage broker · Credit Rep #574071

Esteb & Co — authorised under Connective (ACL #389328)

Older-borrower files are usually lost on a poorly-framed exit strategy, not on the income. The work is documenting a clean, realistic exit, choosing the lender whose age thresholds and term actually fit, and getting the longest term the borrower qualifies for so the servicing works — not treating a birthday as a reason a good borrower can't get a loan.