How much can I borrow as a pensioner?

How much you'd be able to borrow as a pensioner is really dependent on the equity you already have (if you have any) and how much income you receive. Your income can be across different streams, but if you only rely on the pension you might find it difficult to borrow any money at all. You can use a borrowing power calculator to get a better idea of how much you could borrow, but with such specific circumstances it might be better for you to speak to a mortgage broker.

Can I get a 30 year home loan as a pensioner?

Whether or not you can get a 30 year home loan as a pensioner is dependent on the lender's eligibility criteria. It will be deemed a high risk of the loan not being repaid, so many lenders are likely not to approve the loan. But every lender's risk appetite is different and you may be able to come to an agreement. It's a good idea to speak to a mortgage broker, who will understand different policies.

Can I get a 30 year home loan as a pensioner?

Australian law requires lenders to be certain that borrowers are financially able to make their loan repayments. This is the biggest reason pensioners might be denied a loan. That's because pensioners don't necessarily have the stability of longer term income to comfortably meet their repayments each month. The loan term doesn't technically come into that, but a lender believes your income won't be stable for the duration of the loan, they can reject your application. Whether or not you can get a 30 year home loan as a pensioner is really dependent on the lender's eligibility criteria. Every lender's risk appetite is different and you may be able to come to an agreement. It's a good idea to speak to a mortgage broker, who will understand different policies.

Home Loans for Pensioners

Lenders view pensioners as higher-risk borrowers for home loans because they are typically older and on smaller incomes.
A lender may be willing to offer a home loan to a pensioner, and may consider your pension as a form of income when assessing your application.
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

How can I get a home loan on a pension?

Getting a loan as a pensioner always comes down to the lender's eligibility criteria and your individual circumstances. This includes your savings and other sources of income, whether you have outstanding debts or not and the amount you are hoping to borrow.

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

However, there are several ways a pensioner might be able to apply for mortgage finance.

1) Apply for a standard home loan

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

2) Apply with a specialist lender

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

Non-conforming lenders may be able to help where the big banks can't. But they often charge higher interest rates and fees.

Keep in mind that many lenders that specialise in "senior's finance" don't actually lend to pensioners who don't already own property. Instead they offer reverse mortgages and other forms of equity access to older Australians who already own property.

3) 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.

What documents do pensioners need for a home loan?

As a pensioner you'll 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 (or other relevant government department) confirming the status and nature of your disability pension.

Women more likely to be financially vulnerable in retirement

Women are more likely to reach retirement with little to no savings. Finder research shows that 35% of women aged 65+ have less than $1,000 set aside, compared to just 22% of men. This gap leaves many women financially vulnerable, with 1 in 3 single women over 60 living in income poverty.

Source: Finder's State of Women's Wealth Report 2025

What about borrowers on disability pensions and veterans' pensions?

Disability Support 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.
Home Equity Access Scheme. This scheme is offered by the Australian government. Australians receiving the pension can take out a voluntary non-taxable loan using the equity in their home. The loan can act as a supplementary income to their pension. Borrowers can choose to receive the finance in a fortnightly instalments, a lump sum advance payment or a combination of both. It offers a much lower rate than a reverse mortgage.

Looking to compare loan options?

In the tables below you can compare various finance options, from normal home loans to reverse mortgages and lines of credit. Please be aware that not all of the options presented in the table will be available for pensioners. If you're a pensioner and are looking for expert guidance, contact a mortgage broker for personal advice.

Reverse mortgages
Line of credit loans

Compare reverse mortgages

6 of 6 results

Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Custom Badges	Monthly Payment
Finder score Not scored yet G&C Mutual Bank Retirees Access Reverse Mortgage	Finder score Not scored yet	Interest Rate 8.35%	Comparison Rate 8.44%	Fees Application: $500 Ongoing: $0 p.a.	Interest only60% min. equityOwner-occupier	Monthly Payment $1,139 per month	Go to site More info Compare product selectionCompare	loading
Finder score Not scored yet P&N Bank Reverse Mortgage Home Loan	Finder score Not scored yet	Interest Rate 8.25%	Comparison Rate 8.28%	Fees Application: $300 Ongoing: $0 p.a.	Principal & Interest65% min. equityOwner-occupier	Monthly Payment $1,128 per month	More info Compare product selectionCompare	loading
Finder score Not scored yet Unity Bank Retirees Access Reverse Mortgage	Finder score Not scored yet	Interest Rate 8.35%	Comparison Rate 8.44%	Fees Application: $500 Ongoing: $0 p.a.	Interest only60% min. equityOwner-occupier	Monthly Payment $1,139 per month	More info Compare product selectionCompare	loading
Finder score Not scored yet Australian Seniors Advantage Group Reverse Mortgage	Finder score Not scored yet	Interest Rate 8.74%	Comparison Rate 8.86%		Principal & InterestOwner-occupierInvestment	Monthly Payment $1,180 per month	More info Compare product selectionCompare	loading
Finder score Not scored yet Heartland Standard Reverse Mortgage	Finder score Not scored yet	Interest Rate 9%	Comparison Rate 9.03%	Fees Application: $0 Ongoing: $0 p.a.	Interest only50% min. equityOwner-occupier	Monthly Payment $1,208 per month	More info Compare product selectionCompare	loading
Finder score Not scored yet Household Capital Reverse Mortgage Variable Home Loan	Finder score Not scored yet	Interest Rate 9.20%	Comparison Rate 9.23%	Fees Application: $950 Ongoing: $0 p.a.	Principal & Interest50% min. equityOwner-occupier	Monthly Payment $1,230 per month	More info Compare product selectionCompare	loading

Showing 6 of 6 results

Compare line of credit loans

20 of 21 results

Finder Score	Interest Rate p.a.	Comparison Rate p.a.	Fees	Custom Badges	Monthly Payment
Finder score 8.6 Great AMP Bank Professional Package Line of Credit	Finder score 8.6 Great	Interest Rate 5.84%	Comparison Rate 6.03%	Fees Application: $0 Ongoing: $349 p.a.	Interest only40% min. equityOwner-occupier$1M+	Monthly Payment $885 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.5 Great AMP Bank Professional Package Line of Credit	Finder score 8.5 Great	Interest Rate 5.84%	Comparison Rate 6.07%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityInvestment$1M+No LMI	Monthly Payment $885 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.5 Great AMP Bank Professional Package Line of Credit	Finder score 8.5 Great	Interest Rate 5.84%	Comparison Rate 6.08%	Fees Application: $0 Ongoing: $349 p.a.	Interest only40% min. equityInvestment$500k+	Monthly Payment $885 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.5 Great AMP Bank Professional Package Line of Credit	Finder score 8.5 Great	Interest Rate 5.89%	Comparison Rate 6.07%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityOwner-occupier$500k+No LMI	Monthly Payment $890 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.5 Great AMP Bank Professional Package Line of Credit	Finder score 8.5 Great	Interest Rate 5.89%	Comparison Rate 6.07%	Fees Application: $0 Ongoing: $349 p.a.	Interest only10% min. equityOwner-occupier$1M+LMI	Monthly Payment $890 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.4 Great AMP Bank Professional Package Line of Credit	Finder score 8.4 Great	Interest Rate 5.89%	Comparison Rate 6.13%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityInvestment$500k+No LMI	Monthly Payment $890 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 8.4 Great AMP Bank Professional Package Line of Credit	Finder score 8.4 Great	Interest Rate 5.89%	Comparison Rate 6.10%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityInvestment$1M+No LMI	Monthly Payment $890 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 7.9 Great AMP Bank Professional Package Line of Credit	Finder score 7.9 Great	Interest Rate 6.34%	Comparison Rate 6.60%	Fees Application: $0 Ongoing: $349 p.a.	Interest only40% min. equityInvestment$100K to	Monthly Payment $934 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 7.8 Great AMP Bank Professional Package Line of Credit	Finder score 7.8 Great	Interest Rate 6.39%	Comparison Rate 6.65%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityInvestment$100K to No LMI	Monthly Payment $939 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 7.7 Great AMP Bank Professional Package Line of Credit	Finder score 7.7 Great	Interest Rate 6.59%	Comparison Rate 6.77%	Fees Application: $0 Ongoing: $349 p.a.	Interest only40% min. equityOwner-occupier$100K to	Monthly Payment $958 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 7.6 Great AMP Bank Professional Package Line of Credit	Finder score 7.6 Great	Interest Rate 6.64%	Comparison Rate 6.82%	Fees Application: $0 Ongoing: $349 p.a.	Interest only20% min. equityOwner-occupier$100K to No LMI	Monthly Payment $963 per month	Enquire now More info Compare product selectionCompare	loading
Finder score 7.3 Great BCU Bank All-In-One Line of Credit	Finder score 7.3 Great	Interest Rate 6.99%	Comparison Rate	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest21% min. equityOwner-occupier	Monthly Payment $998 per month	More info Compare product selectionCompare	loading
Finder score 7 Great BCU Bank All-In-One Line of Credit	Finder score 7 Great	Interest Rate 7.15%	Comparison Rate	Fees Application: $0 Ongoing: $0 p.a.	Principal & Interest21% min. equityInvestment	Monthly Payment $1,014 per month	More info Compare product selectionCompare	loading
Finder score 6.5 Standard Auswide Bank Freedom Package Line of Credit	Finder score 6.5 Standard	Interest Rate 7.26%	Comparison Rate	Fees Application: $0 Ongoing: $395 p.a.	Interest only10% min. equityOwner-occupierLMI	Monthly Payment $1,026 per month	More info Compare product selectionCompare	loading
Finder score 5.7 Standard Auswide Bank Freedom Package Line of Credit	Finder score 5.7 Standard	Interest Rate 7.78%	Comparison Rate	Fees Application: $0 Ongoing: $395 p.a.	Interest only10% min. equityInvestmentLMI	Monthly Payment $1,079 per month	More info Compare product selectionCompare	loading
Finder score 5.6 Standard Hume Bank Line of Credit Loan	Finder score 5.6 Standard	Interest Rate 8.50%	Comparison Rate	Fees Application: $600 Ongoing: $0 p.a.	Interest only20% min. equityOwner-occupierNo LMI	Monthly Payment $1,155 per month	More info Compare product selectionCompare	loading
Finder score 5.5 Standard Queensland Country Bank Ultimate Home Loan Package Line of Credit	Finder score 5.5 Standard	Interest Rate 7.94%	Comparison Rate	Fees Application: $0 Ongoing: $395 p.a.	Interest only20% min. equityOwner-occupierInvestmentNo LMI	Monthly Payment $1,096 per month	More info Compare product selectionCompare	loading
Finder score 5.1 Standard Hume Bank Line of Credit Loan	Finder score 5.1 Standard	Interest Rate 8.75%	Comparison Rate	Fees Application: $600 Ongoing: $0 p.a.	Interest only20% min. equityInvestmentNo LMI	Monthly Payment $1,181 per month	More info Compare product selectionCompare	loading
Finder score 4.6 Basic Queensland Country Bank Line of credit	Finder score 4.6 Basic	Interest Rate 8.44%	Comparison Rate	Fees Application: $250 Ongoing: $100 p.a.	Interest only20% min. equityOwner-occupierInvestmentNo LMI	Monthly Payment $1,148 per month	More info Compare product selectionCompare	loading
Finder score 4.5 Basic Gateway Bank Equitismart Line of Credit	Finder score 4.5 Basic	Interest Rate 8.75%	Comparison Rate	Fees Application: $200 Ongoing: $0 p.a.	Principal & Interest20% min. equityOwner-occupierNo LMI	Monthly Payment $1,181 per month	More info Compare product selectionCompare	loading

Showing 20 of 21 results

Frequently asked questions about home loans for pensioners

How much you'd be able to borrow as a pensioner is really dependent on the equity you already have (if you have any) and how much income you receive. Your income can be across different streams, but if you only rely on the pension you might find it difficult to borrow any money at all.
You can use a borrowing power calculator to get a better idea of how much you could borrow, but with such specific circumstances it might be better for you to speak to a mortgage broker.
Whether or not you can get a 30 year home loan as a pensioner is dependent on the lender's eligibility criteria. It will be deemed a high risk of the loan not being repaid, so many lenders are likely not to approve the loan. But every lender's risk appetite is different and you may be able to come to an agreement. It's a good idea to speak to a mortgage broker, who will understand different policies.
Australian law requires lenders to be certain that borrowers are financially able to make their loan repayments. This is the biggest reason pensioners might be denied a loan. That's because pensioners don't necessarily have the stability of longer term income to comfortably meet their repayments each month.
The loan term doesn't technically come into that, but a lender believes your income won't be stable for the duration of the loan, they can reject your application.
Whether or not you can get a 30 year home loan as a pensioner is really dependent on the lender's eligibility criteria. Every lender's risk appetite is different and you may be able to come to an agreement. It's a good idea to speak to a mortgage broker, who will understand different policies.

What is Finder Score?

The Finder Score crunches 7,000 home loans across 120+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.

To provide a Score, we compare like-for-like loans. So if you're comparing the best home loans for cashback, you can see how each home loan stacks up against other home loans with the same borrower type, rate type and repayment type. We also take into consideration the amount of cashback offered when calculating the Score so you can tell if it's really worth it.

Read the full breakdown

Sources

Thank you for your feedback!

To make sure you get accurate and helpful information, this guide has been reviewed by Rebecca Pike, a member of Finder's Editorial Review Board.

Written by

Richard Whitten

Senior Money Editor

Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University. See full bio

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Richard has written 687 Finder guides across topics including:

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136 Responses

RegNovember 2, 2017

Selling current home, looking to downsize. What bank or other financial bodies will lend me money while I am on the age pension and my wife on a disability pension? I what to put in a 20% deposit.

Finder

RenchNovember 2, 2017Finder

Hi Reg,

Thanks for reaching out to us. Please note that we are not affiliated with any company we feature on our site and so we can only offer you general advice.

You can also have a look on these pages if you are on Centrelink or on a pension:
https://www.finder.com.au/pensioner-loans
https://www.finder.com.au/home-loans-for-centrelink-recipients

You’re actually also already on the correct page for helpful info ad compare your options.

Best regards,
Rench

RayOctober 9, 2017

I’m 69 years old, on an aged pension, married, House valued at $495000, present mortgage $52000. Wish to increase to $65000, but not reverse mortgage. Can anyone help ?

Finder

HaroldOctober 9, 2017Finder

Hi Ray,

Thank you for your inquiry.

Every lender sets their own eligibility and income requirements on loans. They also have their own style in treating your assets, income and financial position and most lenders will review your application on a case-by-case basis. Your eligibility for a home loan will depend on the amount of benefit you receive and how much of this can be used to service a loan.

If you would like to apply for a home loan while on pension, you can speak to a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options. Once you have chosen a particular provider, you may then click on the “Enquire now” button and you will be redirected to the provider’s website where you can proceed with your query.

Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

I hope this information has helped.

Cheers,
Harold

StuartSeptember 22, 2017

I currently own (no mortgage, value $1m) a property together with my sister which is too large and we were wondering if we could take out a mortgage on our existing property of $500,000 and buy a smaller property with this money and rent out our existing property for $750 per week. We are both pensioners with a current joint income of $850 per week. Would lending institutions allow us to take out such a mortgage?

Finder

RenchSeptember 24, 2017Finder

Hi Stuart,

Thanks for your inquiry.

Although the choices may be limited, there are loan options you and your sister can still possibly take advantage of. We’ve outlined the list above for your reference. Keep in mind that the loan availability will depend on your financial standing and also the type of pension you receive. You can use the comparison table above to help you find the lenders that suit you. If you determine that this is the type of loan that you’re looking for, you can click on the ‘Go to site’ button once they are ready to apply to be securely redirected to the brand’s website.

Alternatively, you can speak to a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options.

Before applying, please ensure they review the relevant Product Disclosure Statements/Terms and Conditions.

Best regards,
Rench

AnaSeptember 18, 2017

Hello, my parents are pensioners & have a deposit for a unit! What banks or lenders out there would take their Centrelink payment into account! Thank you for your help.

Finder

JoanneSeptember 18, 2017Finder

Hi Ana,

Thanks for reaching out to Finder.

Although the choices may be limited, there are loan options your parents can still possibly take advantage of. We’ve outlined the list above for your reference. Keep in mind that the loan availability will depend on your parent’s financial standing and also the type of pension they receive. You can use the comparison table above to help you find the lenders that suit them. If you determine that this is the type of loan that they’re looking for, you can click on the ‘Go to site’ button once they are ready to apply to be securely redirected to the brand’s website.

Alternatively, your parents can speak to a mortgage broker who can take their personal circumstance into account and offer them a range of borrowing options.

Before applying, please ensure they review the relevant Product Disclosure Statements/Terms and Conditions.

Cheers,
Joanne

LuisaSeptember 7, 2017

Enquiring about a loan

GruSeptember 8, 2017

Hello Luisa,

If you are inquiring about home loans that are available to pensioners, I see you are on the right.

To assist you further, I would like to gain clarification on your home loan requirements.
Information such as loan amount, years to pay, are a good way to start.

Hope to hear from you again soon.

Cheers,
Gru

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Home Loans for Pensioners

While it is harder, you can get a home loan while on a pension. It depends on how much you want to borrow, your spending, assets and if you have other income sources.