Getting a Mortgage After 50: What You Need to Know

If you are over 50 and are thinking about buying a home or investment property, the idea of taking on a long-term mortgage might feel a little overwhelming, especially seeing the 25 and 30-year terms. But the truth is, getting a mortgage later in life is absolutely possible, with the right advice and a clear exit strategy in place.

While there’s no strict age limit when it comes to applying for a home loan, different lenders have different rules when it comes to older borrowers. The main thing they’re looking at is whether you’ll realistically be able to repay the loan over the term you’re applying for. This isn’t just about protecting the lender; it’s part of the Responsible Lending Code, which is designed to protect you as a borrower and help prevent you from falling into financial hardship. It’s part of the lender’s responsibility to ensure this doesn’t happen. 

When you apply for a mortgage later in life, lenders take a close look at your current and projected financial situation. They’ll want to know what your income looks like now and, if retirement is on the horizon, what your income is likely to look like in the future. This might include earnings from your job or business, and also income from things like pensions, superannuation, KiwiSaver, or other investments. Some lenders may ask for a retirement income plan, so it’s a great idea to show them you have a solid long-term plan in place. The more information and clarity you can provide, the better positioned you’ll be.

Another key part of the puzzle is how much you’re contributing as a deposit. A larger deposit not only reduces the size of your mortgage but also reduces risk for the lender, which can help improve your chances of approval and even lead to more favourable loan terms. If you have other assets like property, investments, or assets such as a car or boat, these can sometimes be used as security, giving the lender added confidence and flexibility.

The most important thing to remember is that buying a home or investment property later in life is entirely doable. Yes, there are some extra considerations, and lenders may be a little more cautious, but with the right structure and support, it can be a smart financial move. Whether you’re downsizing, relocating, or investing for retirement, it’s all about finding the lending solution that works best for your goals and your financial situation.

Because every lender has different rules and policies around lending to older borrowers, it’s a great idea to have an experienced mortgage adviser on your side - someone who can help you make sense of the options and guide you through the process with confidence.

At Loan Market Dunedin, our local team of mortgage advisers understand the lending landscape and are here to help you find the right solution for your stage of life. We’ll work with you to create a personalised strategy and make sure your loan is structured in a way that supports your future. Simply get in touch to book your free appointment with us.