50 is the New 40: Unless You Want a Home Loan

When it comes to home ownership, we hear a lot about Millennials unable to save for a house deposit and spending their days gorging on avocados. But some Baby Boomers don’t have it so easy either.

Mortgage for 40-year-olds: is it possible to get a 30-year loan?

Amid decade-high interest rates and seemingly ever-increasing house prices, many Australians are buying their homes later in life.

While it can be trickier for older Australians to get home loans, it's not impossible. In 2019-20, people aged 35-54 made up 35.3% of recent first home buyers. Close to 10% were aged 45-54.

There is no age limit on home loans and age-based discrimination is illegal. But when you apply for a mortgage, your age will be considered among many key criteria; you need to prove you can pay a mortgage now and into the future.

So, if a lender feels confident you will repay a loan, they will lend to you at a mature age.

Some lenders require you to have an 'exit strategy' - a plan for paying out the loan after your retirement. Exit strategies can include downsizing a property or using superannuation to pay off your house.

Am I too old to get a home loan?

work out your borrowing capacity on a standard 30-year loan term. That means, if you’re 70 years of age, there’s a fair chance you won’t be around in 30 years’ time to finish paying off your 30-year loan.

While that probably isn’t too hard to digest, some buyers might be surprised to hear that a high-earning 55-year-old might also be rejected for a home loan based on the same rules. While applying for a home loan later in life is acceptable (not to mention far more common these days due to divorce or death of a partner, downsizing/upsizing and snowballing median property prices), the older you are, the harder it will be to get approval for a loan.

While it’s illegal to discriminate against someone based on their age, people need to realise they must be able to pay the loan back during their working lifetime.

Even if you’re 45-50 years of age and you can’t show how you will be able to repay a 30-year loan, there is a good chance your application will be knocked back unless you can provide an exit strategy.

Are you at risk of mortgage stress?

When you apply for a home loan, lenders apply a 'stress test' accounting for interest rate increases. But when there are sudden hikes as we've seen recently, mortgage stress can impact many households.

As interest rates continue to rise, over
are at risk of mortgage stress with a further 1 million 'extremely at risk.' A number higher than the 2008 global financial crisis.

The number of mortgage holders considered ‘at risk’ has increased by 766,000 since the RBA began increasing interest rates in May 2022, according to Roy Morgan research.

Many households are in stress and do not have enough income to cover mortgage repayments and other living expenses.

In July, the Australian National University estimated if rates hit 4.6%, Australians will pay 40% of their income into mortgages and other loans.

Here are some tips when facing mortgage stress:

  • Consider refinancing your home loan to potentially reduce your rate or consolidate debts.
  • Review your budget to see if there is any wriggle room to cut back on spending.
  • Build a savings buffer if possible. Keeping this in an off-set account could help reduce your repayments.
  • Have a mortgage exit strategy if you are a mature buyer.
  • Contact a financial counsellor. Call the National Debt Helpline 1800 007 007.

How different generations search for mortgages

successful in purchasing property, it’s assumed they’ve borrowed more than they should and will never be able to pay back their home loan.

Certainly, data taken from UNO’s platform between June and August 2017 shows just over half of all people who searched for
or higher. 43% searched for loans larger than their maximum borrowing power.

Interestingly, the data shows it’s not

The blight of the baby boomer

One reason for this is that baby boomers (those born between 1946 and 1964) tend to be more confident – even over-confident – when it comes to buying property in Australia. It may be because they’ve been through a time when owning a home was the normal state of affairs, rather than an unachievable goal like it is for many young people today. In the mid-90s, almost 70% of Australians in their 30s and 40s owned a home, according to the Australian Bureau of Statistics’ Survey of Income and Housing. Today, it’s closer to 31%.

“For many people in that generation, they’re so used to
going up and up that they just can’t imagine them ever going down, or even flattening,” says UNO founder Vincent Turner.

“They’re sitting on veritable gold mines which makes them over-confident when it comes to purchasing further homes as they expect them to increase substantially in value as well.”

How UNO can help

A UNO Broker can help buyers of any age find the best deal on their home loan. With access to over 20 lenders and persoanlised support, we can find the right deal for you.

UNO are even equipped to deal with complicated inquiries.

We once helped a couple with unsecured debts from loans taken out for a wedding and a car. One of the customers had recently became unemployed and found themselves in arrears.

With a final notice from their bank saying the home would be repossessed, they sought debt consolidation to get ahead on their finances.

A UNO Broker found this couple a specialized lender who let them refinance at a lower rate. The couple were also able to consolidate half their unsecured debts, making room in their budget to pay the rest down.

Book Call Now

UNO home loans

Need help with your home loan?

UNO Brokers are available night and day for a quick review or your situation and bring expertise that will support better decision making that will save you time and money. Book in a quick call when it suits your busy schedule

Get Started

Related Articles


What our customers are saying

Sally Mackenzie
February 19, 2024
We chose Uno Home Loans from their impressive web site knowing we were going to find it hard, on many fronts, to qualify for a home loan. We were incredibly fortunate to be assigned Mike Parsons as right from the get-go, despite the complexities, he hit the ground running for us. He was incredibly knowledgeable, with years of experience but what was immediately apparent and impressive was that he was totally invested in getting us over the line, doing absolutely everything possible, including working around the clock. Despite it being a relatively small loan in the order of things, Mike never missed a beat, getting docs ready, following up and answering every request from the proposed funder immediately. He kept us informed on progress the minute anything happened, and again if anything needed to be done, he was right on it. In short, we highly recommend Uno, and Mike, knowing what a remarkable job he did, over many weeks, to get us our loan. He got us a great deal, with far better rates than we expected, so we couldn't be happier. In fact, without doubt, you'd be hard pressed to find a more personable, sharp, hard working, dedicated professional who clearly prides himself on getting his customers standout results.
Read more
February 13, 2024
Scott and his team were just A-mazing. We felt supported through the whole process with the greatest quality and care. Every question answered right in time, or even before we asked. The process was smooth and we got the best outcomes we could have wished for.
Read more
Angela Biddle
February 6, 2024
Our mortgage recently came up for renewal, and with interest rates skyrocketing we were looking for ways to minimise the impact. Michael and his team were proactive and attentive. Michael spent time with us to understand our circumstances. He found mortgage options that worked with our current financial situation and longer investment plans. He presented clear options, providing guidance where needed. He and his team were helpful and responsive - streamlining the process and keeping us updated through the negotiations. In the end, Uno did the heavy lifting and secured a significantly better rate than our current bank offered, all with friendly, personal service. We would highly recommend UNO Home Loans.
Read more
Fotis Bikas
January 15, 2024
I cannot help but congratulate Scott Wilkinson of UNO Home Loans for being an absolute credit to both his company and the entire loans industry. Scott is a truly rare gem of a broker in that he will not only go the extra mile to achieve for each customer the very best deal, but his knowledge of all and sundry within the industry is unsurpassed (you will see what I mean if you speak to him). Additionally, Scott has a clear passion for imparting his wealth of information with each customer, whereas the conversation with most other brokers would simply be over if they could not get you the best deal. For me, Scott Wilkinson of UNO Home Loans stands head and shoulders above the competition and I feel privileged to benefit both from his expertise and professionalism whenever it is time for a refinance or new loan.
Read more
Tomoharu Matsui
January 11, 2024
Michael Parsons helped me a lot when it's difficult to establish my capabilities in loan.
Read more
Gillian Kearon
January 9, 2024
I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
Read more
Taner T
December 20, 2023
Thank you Eren Tan for the amazing service and support. Our Loan was a little tricky and complex for other lenders but Eren managed to get it over the line in record time. His professionalism and dedication to our needs was exceptional. If you need a Loan no matter how complex your situation, make sure you contact Eren at UNO Home Loans.
Read more
Karaipu Brown
December 20, 2023
Buying & selling a house at the same time is very stressful but Scott Wilkinson from UNO home loans made sure we knew what was happening & took most of the stress away. He always kept us up to date and if we had a concern or wanted clarification on something we were able to call him, if he didn’t know the answer straight away he will find out and contact us back.. now we are enjoying our new house and turning it into a home :)
Read more
Chris Anderson
December 18, 2023
Just completed my first loan with UNO which was so much easier than with other other brokers I have used in the past. Our broker MIKE PARSONS always had time for me and broke things down for me in the simplest of terms and was very patient with my silly questions and my constant changing of plans. I wish I had used them in the past as I wouldn't be in the situation I'm in now. Can't recommend them highly enough. Thanks UNO and Thanks MIKE 😊
Read more
Stephen Broomfield
December 11, 2023
To be able to recommend Scott Wilkinson for your mortgage broker was a privilege. We had deals fall through but Scott supported, guided and stuck with us, proper partnership. The whole team at UNO helped us and supported us right through to after settlement. Made sure everything was correct and how we are progressing. Communication was amazing and straightforward and easy to understand. Transparent. We can not Recommend Scott and the team as Uno high enough. Use UNO with confidence.
Read more
Tarek Hussain
December 6, 2023
Can't thank Amy enough for her hard work, dedication and determination on getting multiple loans completed for me. I wouldn't hesitate in recommending Amy and the Uno team to any of my associates. Will definitely be back in the near future!
Read more
November 3, 2023
If you’re looking for a trustworthy, thorough, reliable & knowledgeable Mortgage Broker then you must call Anita Callaghan! I can’t even imagine how stressful this process would’ve been without her. Anita went above and beyond to make sure she answered every question, responded to every text (even on weekends/after hours), and followed up on every detail to ensure we had all the info we needed. Anita is a true people person who is warm, empathetic, kind and supportive. You can tell she loves helping people and loves what she does, which is probably why she’s so good at it! Can’t thank you enough Anita, or recommend you more highly! You’re the best!
Read more