Bank approves 30-year home loan to 76-year-old
The thought of debt hanging over your head as you hit triple figures isn’t pleasant, but it could be a reality for many Aussies as a News Corp report reveals seniors in their 70s and 80s are increasingly being approved for owner occupier home loans.
News Corp cites industry sources who suggest applicants as old as 83 were approved for loans in 2017, despite a clampdown on lending requirements from regulators.
In one case, a 76-year-old borrower was approved for a $940,000 30-year-loan.
One sources reportedly said banks typically view borrowers over the age of 50 different, with those paying off mortgages above the age of 70 requiring an exit strategy.
But homeloanexperts.com.au’s managing director Otto Dargan said this doesn’t necessarily mean lenders discriminate by age, and view each application differently.
“Just because someone is over 65 doesn’t mean that it’s inappropriate to give them a mortgage,’’ he said.
“Lenders investigate their specific circumstances and identify how they are going to repay the loan without getting into hardship.
“Denying someone based solely on their age is a form of discrimination but lenders can deny a loan if it is unsuitable for the borrower.”
An Australian Bankers’ Association spokeswoman said strict measures are already in place for anyone looking for mortgages later in life, to ensure they can repay debt.
“When making lending decisions, banks take into account many factors including the customer’s financial situation, employment status, income and expenses,’’ she said.
“No two customers are the same so each case will be assessed differently in line with banks’ responsible lending obligations.”
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