Home Loans for Pensioners

If your only income is the pension but you're keen to become a homeowner, we've got good news: although it is more difficult, Australian borrowers on pensions can get mortgages. 

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Some lenders view pensioners as high-risk borrowers because they are typically older and on smaller incomes. But there are many lenders willing to offer home loans to individuals receiving pension benefits, even if you're aged in your 60s or 70s. We explain the options available and how to take the next step towards buying a home.

How can I get a home loan on a pension?

Pensioners who want to apply for a home loan should start by considering the loan from their lender's perspective. What is the most important thing to a bank? Your ability to repay the loan. Therefore, you should consider what your income and financial position looks like, as it will form the basis of getting a home loan or not.

If your only source of income is the pension, then this might limit your options as the pension amount is lower than the income level most lenders require you earn, in order to repay a loan.

However, there are several ways a pensioner can apply for mortgage finance. The best option for you depends on your financial situation.

Apply for a standard home loan

If you have forms of income from other sources or you are only borrowing a small amount, you may be able to apply for a home loan like any other borrower. If this is your situation you might be able to get a competitive interest rate, so be sure to compare your options.

Apply with a specialist lender

There are lenders who specialise in providing finance solutions to borrowers in difficult or unique circumstances. There are even lenders who focus entirely on older borrowers. These types of lenders provide loans known as specialist or non-conforming loans.

Talk to a mortgage broker

Perhaps the best option for pensioners looking for a home loan is to get in touch with a mortgage broker. This is because mortgage brokers specialise in helping borrowers in unique circumstances and they have access to a wide panel of lenders.

A broker can help you look for loans and lenders that match your requirements. Their services are typically free to you because the lender you choose will pay them a commission.

Need home loan help? Speak to a mortgage broker

What documents do pensioners need to supply for a home loan?

As a pensioner you will need to provide a few extra documents in addition to the standard documents in a mortgage application. Every lender has their own requirements but you'll generally need to provide the following:

  • Evidence of funds to complete the deposit.
  • Bank statements showing Centrelink benefits being paid into your bank account (i.e. some lenders require 6 months of recent bank statements).
  • Letter from Centrelink confirming the status and nature of your disability pension.

What about borrowers on disability pensions and veterans' pensions?

Disability pensions

Generally, lenders consider a disability pension to be a valid form of income, meaning they treat a home loan application for someone on a disability pension just like any other application.

Most lenders will review your application on a case-by-case basis. Your eligibility for a home loan will depend on the amount of income you receive and how much of this can be used to service a loan.

Other factors including your age, assets and debts will be assessed by a lender on an individual basis.

Veterans' pensions

Many lenders may accept a Veterans' Pension as a source of income for a home loan. This applies if you are receiving:

  • War Widow's or Widow's Pension
  • Service Pension
  • Veterans' Affairs Age Pension

Additionally, lenders may accept the Department of Veterans' Affairs Incapacity Pension as a source of income. In order to demonstrate your pension as a source of income for a home loan application, you'll need either a current bank statement showing your pension payment, or a current Department of Veterans' Affairs statement.

On Centrelink? You could still get a home loan

Other mortgage types for older borrowers

If you're a pensioner who already owns their own home you have some other finance options. Both reverse mortgages and line of credit loans allow you to borrow money against the equity in your home.

  • Reverse mortgages. A reverse mortgage allows you to borrow funds using equity from your home as security for the loan. A reverse mortgage can either be paid as a lump sum, a regular stream of income, a line of credit or a combination of these. No income is needed to qualify and for this reason, the interest rate tends to be higher. You must repay the sum of borrowed money when you sell your home, pass away or move into aged care.
  • Line of credit loans. A line of credit is a funding line that uses the equity in your home. It’s an approved amount that you can use a bit at a time or all at once. You loan is approved against a security and you can draw on this loan amount at any time. You only pay the interest on the amount that you use. For example, if you get a line of credit of $200,000 and only use $50,000, you only pay interest on the $50,000. These types of loans can be harder to get, and not all lenders offer them.

Need home loan help? Find a mortgage broker to help you

In the tables below you can compare various finance options, from normal home loans to reverse mortgages and lines of credit. If you're a pensioner and are looking for some expert guidance you can leave your details and a mortgage broker will get in touch (just click on the compare mortgage brokers tab).

Compare standard home loans

Data indicated here is updated regularly
$
years
Name Product Interest Rate (p.a.) Comp. Rate^ Application Fee Ongoing Fees Max LVR Monthly Payment
Westpac Flexi First Option Home Loan
2.29%
2.72%
$0
$8 monthly ($96 p.a.)
95%
$577.55
Up to $3,000 refinance cashback.
A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
St.George Basic Home Loan
2.54%
2.56%
$0
$0 p.a.
80%
$596.91
Up to $4,000 refinance cashback. With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get up $4,000 cashback and borrow up to 80% of the property's value. (Terms, conditions & exclusions apply).
Macquarie Bank Basic Home Loan
2.49%
2.49%
$0
$0 p.a.
60%
$593.01
A competitive variable rate home loan for owner-occupiers. Requires a 40% deposit.
UBank UHomeLoan Variable Rate
2.34%
2.34%
$0
$0 p.a.
80%
$581.39
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
HSBC Fixed Rate Home Loan
1.88%
2.98%
$0
$0 p.a.
80%
$546.6
Lock in a competitive fixed rate for 2 years and buy your home with a 20% deposit.
Athena Variable Home  Loan
2.19%
2.19%
$0
$0 p.a.
60%
$569.91
Owner occupiers with 40% deposits or equity can get this competitive variable rate loan. No upfront or ongoing fees.
Suncorp Back to Basics Home Loan
2.54%
2.55%
$0
$0 p.a.
80%
$596.91
A competitive variable interest rate loan with low fees. The establishment fee is waived if you borrow $150,000 or more.
Well Home Loans Balanced Fixed Home Loan
1.94%
2.18%
$250
$0 p.a.
90%
$551.07
Owner occupiers can get a sharp fixed rate for the first year, plus an offset account. Available with a 10% deposit.
Suncorp Home Package Plus Fixed
1.89%
2.94%
$0
$0 p.a.
80%
$547.35
Lock in a low fixed rate loan for two years and get the annual package fee waived in the first year. Available for borrowers with 20% deposits.
UBank UHomeLoan Fixed
1.95%
2.27%
$0
$0 p.a.
80%
$551.82
A competitive fixed interest rate loan with no ongoing fees. Requires a 20% deposit.
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Compare mortgage brokers

Data indicated here is updated regularly
Name Product Upfront consultation fee Variable rates from Comparison rates from Lenders on panel Apply Now
Aussie
$0
2.99%
3.02%
22
Aussie is a long-established mortgage brand with over 1,000 brokers across the country.
Finsure
$0
3.03%
3.04%
35
Finsure has a large panel of lenders and offers flexible mortgage solutions for borrowers.
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Compare up to 4 providers

Compare reverse mortgages

Data indicated here is updated regularly
$
years
Name Product Interest Rate (p.a.) Comp. Rate^ Application Fee Ongoing Fees Max LVR Monthly Payment
Household Capital Reverse Mortgage Variable Home Loan
4.95%
5.01%
$1.50
$0 p.a.
50%
$801.63
A competitive reverse mortgage for borrowers aged 60 and over. Flexible repayment options.
Heartland Seniors Finance Standard Reverse Mortgage
5.6%
5.62%
$0
$0 p.a.
45%
$862.04
A reverse mortgage for homeowners over 60 wishing to access up to 45% of their property's value. Repayments are not required until the end of the loan.
Household Capital Refinance Variable Home Loan
4.95%
5.01%
$1.50
$0 p.a.
50%
$801.63
Borrowers over 60 can refinance to this competitive, variable reverse mortgage.
Heartland Seniors Finance Secondary Property Reverse Mortgage
5.6%
5.62%
$0
$0 p.a.
33.75%
$862.04
A reverse mortgage that lets you access the equity in your investment property. Repayments are not required until the end of the loan.
P&N Bank Reverse Mortgage Home Loan
5.4%
5.4%
$395
$80 p.a.
35%
$843.24
Borrow up to 35% LVR to help fund your retirement. Reverse mortgage.
Heartland Seniors Finance Aged Care Option
5.8%
5.91%
$0
$0 p.a.
50%
$881.04
A reverse mortgage designed to help fund your aged care costs. Repayments are not required until the end of the loan.
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Compare line of credit loans

Data indicated here is updated regularly
$
years
Name Product Interest Rate (p.a.) Comp. Rate^ Application Fee Ongoing Fees Max LVR Monthly Payment
P&N Bank Equity Access Home Loan
4.87%
0%
$395
$10 monthly ($120 p.a.)
90%
$794.33
A home loan which gives flexible access to your equity.
ANZ Equity Manager
6.01%
0%
$600
$150 p.a.
80%
$901.19
Access your equity with a low variable rate and low fees.
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Compare up to 4 providers

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Credit services for Aussie Select, Aussie Activate and Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 (“Aussie”) and its appointed credit representatives, Australian Credit Licence 246786. Credit for Aussie Select products is provided by Residential Mortgage Group Pty Ltd ACN 152 378 133, Australian Credit Licence 414133 (“RMG”). RMG is a wholly-owned subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian Credit Licence 234945. Credit for Aussie Activate products is provided by Pepper Finance Corporation Limited ACN 094 317 647 (“Pepper”). Pepper Group Limited ACN 094 317 665, Australian Credit Licence 286655 acts on behalf of Pepper. Credit services for Aussie Elevate products are provided by AHL Investments Pty Ltd ACN 105 265 861 Australian Credit Licence 246786 (“Aussie”) and its appointed credit representatives. Aussie is a trade mark of AHL Investments Pty Ltd ABN 27 105 265 861. Credit and any applicable offset accounts for Aussie Elevate are issued by Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL / Australian Credit Licence 237879.

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By submitting this form, you agree to the Aussie privacy policy.

After entering your details a mortgage broker from Aussie will call you. They will discuss your situation and help you find a suitable loan.

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Home Loan Offers

Important Information*
Logo for Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)
Westpac Flexi First Option Home Loan - Basic Variable Rate (Owner Occupier, P&I)

Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.

Logo for St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)
St.George Basic Home Loan - LVR 60% to 80% (Owner Occupier, P&I)

Up to $4,000 refinance cashback. With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get up $4,000 cashback and borrow up to 90% of the property's value. (Terms, conditions & exclusions apply).

Logo for Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I
Athena Liberate Home Loan - 70% to 80% LVR Owner Occupier, P&I

A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.

Logo for Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)

Get a competitive variable interest rate with no application fee or ongoing fees.

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120 Responses

    Default Gravatar
    TerryJuly 24, 2019

    I’m looking for a lender. Duplex ,one side rented for 315.00/wk other owner occupied price $200.000 dep $ 20,000, borrower on centrelink

      Default Gravatar
      NikkiJuly 25, 2019

      Hi Terry,

      Thanks for getting in touch! Pensioners can still apply for regular home loans that aren’t specific home loans for pensioners but you should keep in mind you may not be successful if you don’t meet eligibility or income requirements.

      Below are the types of home loans you can apply for:

      Reverse mortgages
      Variable rate loans
      Fixed rate loans
      Line of credit loans

      You can find a list of lenders when you click the type of loan on the left sidebar of this page above. As a friendly reminder, carefully review the eligibility criteria of the loan before applying to increase your chances of approval. Read up on the terms and conditions and product disclosure statement and contact the bank should you need any clarifications about the policy.

      Hope this helps!

      Best,
      Nikki

    Default Gravatar
    JodieJuly 4, 2019

    As a single woman on a disability pension am I eligible and how much could I be eligible for to buy a house?

      Avatarfinder Customer Care
      JeniJuly 4, 2019Staff

      Hi Jodie,

      Thank you for getting in touch with Finder.

      Since you are receiving disability pension, the amount you can be eligible for a loan to buy a house depends on your income. Your chosen lender will review whether the amount of income support you receive is sufficient for you to comfortably repay the loan. I suggest that you speak to a mortgage broker on this matter for further clarification and assistance.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    MichelleFebruary 18, 2019

    I’m on disability pension so is my flat mate we are wanting to buy a home as with the rent we pay now cld have brought us a beautiful home .
    So we are lookin for some one to loan one of us or the both of us home loan

      Default Gravatar
      NikkiFebruary 20, 2019

      Hi Michelle,

      Thanks for getting in touch! It’s helpful to know that we are not an approving body for home loans. The information above will pave the way on how to get started on that home loan application and make sure you check the eligibility requirements of a home loan. You can check this page to see what options you have for as a pensioner. Good luck!

      Best,
      Nikki

    Default Gravatar
    TraceJanuary 5, 2019

    Hi,

    I am 53, single and paying a mortgage on my house but need to refinance, however I am on DSP. I have equity in my house and I really don’t want to sell. My mortgage is with one of the big 4. What would my chances be of refinancing, please?

      Avatarfinder Customer Care
      JeniJanuary 8, 2019Staff

      Hi Trace,

      Thank you for getting in touch with finder.

      Regarding your refinancing query, it is best to speak to a mortgage broker, who can guide you through lenders, big and small, who may accept borrowers on DSP like you. Having equity in the property should make it easier.

      I hope this helps.

      Please feel free to reach out to us if you have any other enquiries.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

    Default Gravatar
    LynetteDecember 6, 2018

    Hi
    Can my husband and I get a fixed, interest only 30 year $150,000 home loan on aged pensions?
    Lynette

      Avatarfinder Customer Care
      MayDecember 12, 2018Staff

      Hi Lynette,

      Thank you for your question.

      Fixed-rate mortgages have a variety of fixed loan terms and these are offered by many lenders in the market. Given your circumstance, you can speak to a mortgage broker who can help you find a suitable fixed home loan option for you and your husband.

      Hope this has helped.

      Cheers,
      May

    Default Gravatar
    christopherNovember 22, 2018

    I m 73 on an aged pension [single]. I receive family tax benefits A & B.I also receives child support of $200 per week. my total income is approx $1400 per fortnight.my mortgage payments with CBA are $ 690 per fortnight [4.67% interest]. I owe $226000 on my home .its valuation is $485000. its located Marysville vic3779.how could I get a line of credit of no more than $20000

      Avatarfinder Customer Care
      JoshuaNovember 26, 2018Staff

      Hi Chris,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      While it is true that being a pensioner may limit your options, you might still be able to find a lender who can help you. First, please review the information mentioned on this page to get a better understanding of how you can get a loan as a pensioner.

      If you want to get a line of credit loan, please go to this page. On that page, you will see a table that allows you to conveniently compare a range of personal line of credit loans. Once you found the right one for you, click on the “Go to site” green button to learn more or initiate your application. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    nicholasNovember 10, 2018

    I am 30 and have 3 children, 2 with a Autism, I am currently on the carrer’s pension and my wife is soon to be a fully qualified nurse (full time employment) I was wondering what the chances of getting a home loan would be?

      Avatarfinder Customer Care
      JoshuaNovember 25, 2018Staff

      Hi Nicholas,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Generally, the longer your wife is working as a nurse, meaning, she has a stable source of income, the higher your chance of getting approved. For this reason, it would be a good idea to wait 2-3 months after your wife became a full-time employee before you apply for a loan.

      Moreover, if you are applying for a loan as a pensioner, your income and financial position might limit your success in getting a home loan. Of course, if you have assets that you can use as collateral or you believe you can meet lending requirements, it would be a good idea to discuss your position in person with your lender. You may also speak to a mortgage broker to further know your options.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

    Default Gravatar
    AngeOctober 6, 2018

    My neighbour is in her mid 60’s and currently renting. She is on a disability pension. Is there any lenders that will provide a loan with only a small deposit or can assets other than a home be used as equity?

      Avatarfinder Customer Care
      DeeOctober 8, 2018Staff

      Hi Ange,

      Thanks for your question.

      Generally, a person on a disability pension with no other source of income will need to deposit at least 20%. This is because there is no other salary or other sources of income that can be used to service the loan – which means little security in case of a default. Kindly note though that home loan criteria vary from lender to lender. Any other assets that may be in the borrower’s name can be used to boost the home loan application.

      For expert advice on the possible options, your neighbour could get in touch with a mortgage broker.

      I hope this helps. Should you have other questions, please feel free to let me know.

      Cheers,
      Anndy

    Default Gravatar
    AmyAugust 19, 2018

    I’m in my late 20s with a Newstart disability pension because I have anxiety. I have a partner who works part-time. I’m a full time student at TAFE at the moment and I’m only getting a small amount fortnightly from Centrelink even though I have the pension card. Would I be able to get a loan? What real estate agent would accept?

      Avatarfinder Customer Care
      JhezAugust 23, 2018Staff

      Hi Amy,

      Thank you for your comment.

      There are some lenders and institutions that consider pension as income, so you may be eligible for a home loan. It generally depends on how much you earn, what kind of financial situation you’re in and what kind of payments you receive. To find out if you are eligible, read our comprehensive guides to getting a loan on pension. Kindly check this page Home Loans for Centrelink Recipients. This will serve as your guide to getting home loans. You’re best to check with the lender your eligibility first before submitting an application.

      You’re also advised to seek advise from a mortgage broker and discuss options based on your needs.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.

      Regards,
      Jhezelyn

    Default Gravatar
    KateJanuary 29, 2018

    Can you advise lenders that will accept disability pension ?

      Avatarfinder Customer Care
      RenchFebruary 8, 2018Staff

      Hi Kate,

      Thanks for reaching out to us.

      Just to confirm if you’re looking to apply for a home loan? If so, there are lenders who might consider you for a home loan, so best to check out and seek mortgage broker’s advice for your lending options.

      In case you are finding a lender who can offer you a personal loan, you may like to check our guide on this page. Those lenders with green checks on that page are the possible lenders you can talk to about your chances of approval/options.

      Hope this information helped.

      Best regards,
      Rench

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