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Over 40 and haven’t bought your first home? Act now or face an uphill battle

Posted: 26 April 2018 1:18 pm
News

Mature man at laptop trying to get a mortgage.

If you're over 40 and haven't bought your first home, the task could be tougher as you get older.

Older first home buyers could face a tough time getting a home loan if they don't act soon.

That's according to a recent report by the Sydney Morning Herald, which pointed to the ageing first home buyer population.

According to the report, the average age of first-time buyers rose from 27 in the early 1990s to 29 in the early 2000s. In December 2017, this average had risen to 31, according to research from ING.

First home buyers in Sydney and Melbourne are likely to be even older than the national average, the Sydney Morning Herald claimed, which could make getting a home loan a tricky process.

While there's no firm age limit on home loan eligibility, lenders are often hesitant to approve older borrowers, particularly if their home loan term runs past the retirement age.

Many older borrowers will be asked to provide an exit strategy to demonstrate how they will continue to meet their repayments in retirement. This can include a superannuation payout, investment property income or income from the sale of shares. If you're over 40 and still haven't gotten into the property market, now could be your best opportunity. Prices in many capital cities have flatlined or fallen in recent months, making entry into the market an easier task. If you're approaching 45, you won't want to delay your purchase too long. While you can still get a home loan as an older borrower, the task will be much simpler the sooner you act.

Compare home loan options for first home buyers

Data indicated here is updated regularly
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Loan purpose
Offset account
Loan type
Repayment type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
Suncorp Back to Basics Home Loan - Better Together Special Offer $150k+ LVR ≤ 80% (Owner Occupier, P&I)
2.68%
2.69%
$0
$0 p.a.
80%
$2,000 to $3,000 refinance cashback.
Get a competitive variable interest rate with no application fee or ongoing fees. Refinance to an eligible Suncorp loan and get a cashback of $2,000 or $3,000, depending on your loan amount. Other conditions apply.
HSBC Home Value Loan - Promotional Offer (Owner Occupier P&I)
2.59%
2.60%
$0
$0 p.a.
80%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online.
UBank UHomeLoan Variable Rate - Discount Offer for Owner Occupiers, Variable P&I Rate
2.49%
2.49%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
IMB Budget Home Loan - Special LVR  ≤90% (Owner Occupier, P&I, NSW and ACT borrowers only)
2.78%
2.84%
$449
$0 p.a.
90%
NSW and ACT customers only. You can get an interest rate discount for a limited time with this competitive variable mortgage.
HSBC Fixed Rate Home Loan - 2 Year Fixed Rate LVR 80% or below (Owner Occupier, P&I)
2.09%
2.98%
$0
$0 p.a.
80%
Lock in a competitive fixed rate for 2 years and buy your home with a 20% deposit.
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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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*The loans in the table above may also be available for non-first home buyers. But first home buyers may find these loans useful because many have max insured LVRs above 80%.

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