New Mortgage Rules For Older Borrowers In Australia. What You Need to Know About the New Mortgage Rules Alex Beauregard Under the Age Discrimination Act, lenders are not allowed to reject a home loan application just because the borrower is too old As part of the new Responsible Lending Legislation, banks and funders now require older borrowers to provide detailed evidence showing they can continue paying the loan beyond retirement age or earlier
Mortgage lenders change rules to help existing borrowers Money To The Masses from moneytothemasses.com
is one of Australia's most experienced financial journalists "The new rules are going to be a severe impediment to a lot of older people looking for finance in the property market, " says financial adviser Bruce Brammall.
Mortgage lenders change rules to help existing borrowers Money To The Masses
Consider a forty something-year-old borrower taking on a 30-year loan, just like over fifty-five-year olds, their mortgage term takes them well into their sixties, seventies or even their eighties So with standard mortgages running up to 30 years, anyone over the age of 50 is likely to be impacted. Is there an age that is considered too old for a home loan? Since we have no forced retirement age in Australia, 65-75 is considered to be the retirement age by most lenders
Understanding the new mortgage rules. Moreover, homebuyers may be tempted to spend more than they can afford because the monthly payments will be cheaper than they were under the old rules. As a result, people aged over 35, looking to take out a mortgage may need to show that they can repay the home loan before they retire.
Licensed Money Lender New Rules That Protect Borrowers. Is there an age that is considered too old for a home loan? Since we have no forced retirement age in Australia, 65-75 is considered to be the retirement age by most lenders So with standard mortgages running up to 30 years, anyone over the age of 50 is likely to be impacted.